Adnoc logistics subsidiary profit up 138%

Adnoc Logistics and Services (L&S) reported a 138 percent year on year increase in net profit to AED2.3 billion ($620 million) as all its business segments continued to perform strongly.

Revenues at Adnoc’s logistics subsidiary rose 41 percent year on year to $2.8 billion, particularly aided by the integrated logistics division, Adnoc L&S said in a statement published on the Abu Dhabi stock exchange.

Fourth-quarter net profit grew 89 percent year on year to $165 million, while revenue increased by 26 percent annually to $828 million.

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Revenues from the integrated logistics segment increased 88 percent year on year to $1.7 billion.

This was mostly due to continued growth in revenues and margins on core business lines, the acquisition of privately-owned ZMI Holdings and new business activities such as engineering, procurement and construction.  

The company’s board recommended a cash dividend of $130 million for the second half of 2023. The total Q2 and H2 2023 dividend is expected to be $195 million, subject to shareholders’ approval.

Payment of the dividend for H2 2023 is anticipated in Q2 2024.

Adnoc L&S aims to increase annual dividends by at least five percent over the medium term, taking the annualised dividend to $260 million.