Adnoc L&S reports Dh712 million in net profit for Q1 2024

Adnoc Logistics and Services on Wednesday delivered a first-quarter net profit of $194 million (Dh712 million), or $0.03 per share, representing a 34 per cent increase over a net profit of $145 million in Q1 2023.

The company generated revenues of $840 million (Dh3.085 billion) in Q1 2024, marking a 42 per cent increase over Q1 2023.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 44 per cent to $286 million over the same comparable quarters as all business segments continued to perform strongly.

Following these strong Q1 results and continuing growth in activities across all business segments, the Company has revised its guidance upwards.

This strong financial performance has been powered by Adnoc L&S’ ambitious transformational growth strategy whereby the company intends to invest in excess of $5 billion in value-accretive growth in energy-related maritime logistics over the medium term, to meet growing demand in and beyond the UAE.

Commenting on the company’s results, Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said: “Adnoc L&S has started 2024 by delivering another set of strong financial results, building on our record-breaking public listing and the robust growth we achieved in 2023. Continuing substantial increases in net profit and revenue clearly demonstrate that our transformational growth strategy is working.

He added: “Moving forward, the company remains steadfast in its commitment to deploying more than $5 billion in value-accretive growth investment over the medium term and leveraging AI technologies to support our operational efficiency, safety, and sustainability goals.”

Revenues from the integrated logistics segment increased to $546 million in Q1 2024, up 55 per cent from Q1 2023. This exceptional performance is attributable to continued growth in revenues driven by higher volumes across all business lines, increased contribution from jack up barges (JUBs) driven by increased fleet size, higher rates and increased utilisation, coupled with expansion in overall integrated logistics activities and owned fleet; and new business activities such as engineering, procurement and construction (EPC).

The Company also reported that Ebitda increased 59 per cent to $160 million over the same period.

Revenues from the Shipping segment grew by 25 per cent to $251 million over the comparable period, driven by strong charter rates for tankers, dry bulk and containers, in addition to the incremental earnings from four new very large crude carriers (VLCC) added to the fleet.

This was slightly offset by gas carriers with reduced earnings due to lower charter-in activity and lower LNG Carrier time charter equivalent rates compared to Q1 2023. Ebitda increased 37 per cent to $114 million (Dh419 million) over the comparable period, driving a 4-percentage point Ebitda margin expansion to 45 per cent.

Revenues from the Marine Services segment grew 7 per cent to $43 million (Dh158 million). This generated an Ebitda of $10 million, an increase of 28 per cent, driven by higher volumes in petroleum ports operations coupled with the execution of a Marine Terminal Operations contract with Adnoc Offshore.