Dubai, UAE – ADNOC Logistics and Services has reported a surge of 162% year-on-year, reaching $455 million (AED1,671 million) or $0.06 or AED0.23 per share in the first nine months of 2023. This growth is attributed to a strategic expansion of Integrated Logistics services, the acquisition of Zakher Marine International Holdings, and strong charter rates for Tankers and Gas Carriers.
In terms of revenue, ADNOC L&S achieved 49% increase year-on-year, reaching $1,927 million (AED7,077 million). The company also reported an EBITDA of $635 million (AED2,332 million), marking a substantial 124% year-on-year increase. The growth was supported by an expansion in the EBITDA margin, reaching 33%, up by 11 percentage points from the same period last year.
The third quarter of 2023 specifically contributed to the positive financial performance, with a 30% year-on-year increase in revenue to $702 million (AED2,577 million). EBITDA for the third quarter grew by 57% year-on-year to $218 million (AED801 million), and net profit increased by 46% year-on-year to $148 million (AED544 million).
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, expressed satisfaction with the results, emphasizing the company’s commitment to its smart growth strategy.
“We are pleased to report another set of outstanding results driven by substantiated progress towards our smart growth strategy. Our continued profitable growth coupled with strong positive cash delivery positions us to continue financing our transformational investment program whilst rewarding our shareholders for their support and trust in ADNOC L&S,” Al Masabi said. “Looking ahead, we continue to actively seek smart well-timed growth opportunities that are in-line with our sustainability priorities to cement our position as a global energy maritime logistics leader.”
Segmental financial performance revealed notable achievements, with the Integrated Logistics segment leading the way with a 108% year-on-year increase in revenues and a 320% increase in EBITDA. The Shipping segment reported a slight increase in revenues but saw a 30% year-on-year increase in EBITDA, supported by healthy charter rates. The Marine Services segment experienced a 9% year-on-year growth in revenues and an 8% increase in EBITDA.
ADNOC L&S is implementing its “smart growth strategy”, expanding its fleet of self-elevating, self-propelled Jack-Up Barges (JUBs) and introducing dual-fuel Very Large Crude Carriers (VLCCs) to meet sustainability targets. The company’s successful IPO in June 2023 was followed by an interim cash dividend of $65 million (AED239 million) for Q2 2023, reinforcing its commitment to delivering attractive returns to shareholders.
The company remains optimistic about the future, reiterating medium-term targets for mid-to-high single-digit growth in group revenues, an EBITDA margin above 30% in 2023, and average annual EBITDA growth in the low teens toward a 35% EBITDA margin. ADNOC L&S also aims for a net debt/EBITDA target of 2.0-2.5x over the medium term.