ADNOC Logistics And Services Reports 38% Revenue Growth, 27% Profit Increase

ADNOC Logistics and Services (ADNOC L&S) announced its financial results for the third quarter and the first nine months of 2024. Revenue for the first nine months reached $2.668 billion (AED 9.798 billion), marking a 38% increase compared to the same period in 2023.

EBITDA grew by 37% to $867 million (AED 3.184 billion), with strong performance across all business areas, keeping EBITDA margins steady at 32%. Net profit for the nine months was $576 million (AED 2.117 billion) or $0.08 (AED 0.29) per share, showing a 27% increase from 2023.

ADNOC L&S saw its third-quarter revenue rise by 32% year-on-year to $928 million (AED 3.410 billion), with EBITDA increasing by 26% to $275 million (AED 1.011 billion).

Net profit for the third quarter grew by 18% year-on-year to $175 million (AED 643 million). This strong performance is due to ADNOC L&S's growth strategy, focused on making valuable investments in energy-related maritime logistics, WAM reported.

Just 18 months after its record IPO, ADNOC L&S already met most of its strategic investment targets, supported by over 340 years of additional long-term contracted demand.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said that the strong financial results reflect the company's ongoing commitment to its strategy and its focus on providing solid returns to shareholders through growth.

He noted that the anticipated contribution of Navig8 would strengthen ADNOC L&S's position as a global player in energy maritime logistics, while the company's strong financial standing allows for additional growth opportunities, both through existing operations and new investments.

Throughout the year, ADNOC L&S strengthened its assets by securing new contracts for energy-efficient vessels. The company awarded contracts worth up to $2.5 billion (AED 9.2 billion) for up to 10 new Liquefied Natural Gas (LNG) carriers.

Furthermore, through AW Shipping, ADNOC L&S signed contracts worth $1.4 billion (AED 5 billion) for nine Very Large Ethane Carriers (VLECs) and around $500 million (AED 1.836 billion) for four Very Large Ammonia Carriers (VLACs).

Revenues from ADNOC L&S's Integrated Logistics segment reached $1.671 billion (AED 6.137 billion), a 51% increase compared to the first nine months of 2023.

This growth was driven by better use of Jack-Up Barges (JUBs) and an expanded fleet, higher logistics volumes, faster delivery of the Hail & Ghasha project, and progress on Engineering, Procurement, and Construction (EPC) projects, particularly the G-Island project, which is expected to be 70-75% complete by the end of the year.

Integrated Logistics EBITDA also rose by 38%, reaching $505 million (AED 1.856 billion) for the first nine months of 2024. Last week, ADNOC and AIQ introduced ENERGYai, a unique artificial intelligence (AI) solution designed specifically to support the global shift toward cleaner energy.