Oil & Gas

Adnoc Logistics & Services first-quarter profit up 34%

May 8, 2024, 11:02 AM

A view of the 'command centre' at Adnoc headquarters. Adnoc L&S serves more than 100 customers worldwide, including Adnoc

Adnoc L&S Q1 profit $194m
$5bn investment planned
Aims to increase dividend

Adnoc Logistics and Services – a subsidiary of Abu Dhabi National Oil Company – reported a 34 percent year-on-year increase in net profit to $194 million (AED712 million) in the first quarter of the year.

Its revenue rose 42 percent year on year to $840 million in Q1, while EBITDA increased 44 percent to $286 million.

In the medium term, the company plans to invest more than $5 billion in “value-accretive growth” in energy-related maritime logistics to meet growing domestic and international demand.

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Abdulkareem Al Masabi, Adnoc L&S’s chief executive, said: “We are continuing to expand our market-leading fleet while growing our geographic reach, service offerings, and global customer base to unlock increased value for our shareholders.”

He added that the company is using artificial intelligence to support operational efficiency, safety and sustainability goals.

Adnoc L&S has one of the region’s largest and most diverse shipping fleets and is among the largest operators and owners of self-propelled jack-up barges – self-elevating platforms largely used for oil exploration.

Parent company Adnoc floated 19 percent of Adnoc L&S’s share capital on the Abu Dhabi bourse last year, raising approximately $769 million.

Revenue from the integrated logistics segment rose 55 percent to $546 million in the first three months of the year, driven by higher volumes in all business lines and new business activities, including engineering, procurement, and construction.

Revenue from shipping increased by 25 percent to $251 million over the comparable period.

The marine services segment grew 7 percent to $43 million, as a result of higher volumes in petroleum port operations and the execution of a marine terminal operations contract with Adnoc Offshore.

In addition to its anchor customer, Adnoc, Adnoc L&S services more than 100 global customers and ships to more than 50 countries.

The company aims to increase its annual dividend by at least 5 percent in the medium term, taking the 2023 annualised dividend of $260 million as a base.