Adnoc L&S buys tanker operator Navig8 for $1.5bn

A subsidiary of UAE state oil major Abu Dhabi National Oil Company (Adnoc) has finalised an agreement to fully acquire Navig8 TopCo Holdings, a shipping and tanker operator, for up to AED5.14 billion ($1.5 billion).

As part of the agreement, Adnoc Logistics and Services (Adnoc L&S) will acquire 80 percent of Navig8 for AED3.8 billion, taking over ownership on January 1, 2024.

The Abu Dhabi-listed company will acquire the remaining 20 percent stake in 2027 for a deferred consideration of AED1.2 billion to AED1.7 billion.

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Navig8 owns a fleet of 32 tankers and has a presence in 15 cities across five continents.

The first full year of investment is forecast to boost Adnoc L&S’s earnings per share by at least 20 percent.

Navig8 reported over AED1.5 billion Ebitda in 2023, equivalent to 44 percent of Adnoc L&S’ Ebitda in the same period.

The deal will result in savings of over AED367 million per annum for the Adnoc unit due to cost management and bunker spending.

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“The addition of Navig8’s presence in 15 international cities and a fleet of tankers will expand our geographical footprint and service offering,” said Abdulkareem Al Masabi, CEO of Adnoc L&S.

The existing Navig8 management team will continue to operate the business daily.

The deal is subject to customary regulatory approvals.

Last year, Adnoc L&S announced plans to invest $4 billion-$5 billion over the medium term. The company reported a 138 percent increase in net profit year on year in 2023, with a 41 percent annual revenue increase.