Dubai: ADNOC Logistics & Services booked net profits of Dh1.47 billion for the first-half of 2024, which is a substantial 31 per cent over the last year numbers. The company, which recently parked new orders for ships with leading South Korean firms, had H1-2024 revenues of Dh6.39 billion, a gain of 42 per cent.
“The sustained execution of our transformational growth strategy is driving our financial performance across all business segments with strong growth in revenues and net profit,” said Capt. Abdulkareem Al Masabi, CEO.
“To meet the growing demand for low-carbon energy sources in the UAE and beyond, we have continued to expand our market-leading fleet through significant new energy-efficient vessel construction contracts and geographical expansion through our acquisition of Navig8.”
The ADNOC subsidiary is to invest over Dh18.4 billion ($5 billion) in 'value-accretive' growth opportunities in the energy-related maritime logistics space by end 2028. It has already committed over 50 per cent of this target in the one year after its record-setting IPO.
New ships on the way
Recently, ADNOC L&S awarded South Korean shipyards - Samsung Heavy Industries and Hanwha Ocean - up to Dh9.2 billion for 8 to 10 new LNG carriers. These are expected to be delivered from 2028 and will be 'time chartered to ADNOC Group subsidiaries for a period of 20 years to support the growing export volumes of natural gas as an in-demand and critical, lower-carbon transitional fuel'.
The additional vessels will increase the company’s fleet of LNG carriers from 14 to 'at least 22 vessels'.
Also, AW Shipping, a joint venture between ADNOC L&S and Wanhua Chemical Group, had signed shipbuilding contracts with the Jiangnan Shipyard in China, for about Dh7 billion in aggregate. These are for nine Very Large Ethane Carriers (VLECs), priced at around Dh5.1 billion) and to be delivered from 2025 to 2027. There are also two Very Large Ammonia Carriers (VLACs), priced in the range of Dh918 million, with the option for another two VLACs at the same pricing, scheduled to be delivered from 2026 to 2028.
The VLECs will also be deployed on 20-year time charter contracts, generating revenue of Dh14.7 billion. (The VLACs are not yet contracted and are targeted to serve the emerging ammonia transportation market, which is anticipated to see substantial growth.)
