Dubai: It's proving to be a good quarter for publicly-listed ADNOC entities, with ADNOC Logistics & Services the latest to announce a sizeable pickup in its financials. The company delivered a net profit of Dh712 million (Dh0.10 a share), which is a 34 per cent gain on the Dh533 million last year.
Revenues pulled in Dh3.085 billion, a robust 42 per cent increase. The EBITDA too turned in an over 40 per cent gain, to Dh1.05 billion as 'all business segments continued to perform strongly'.
A $5b investment gameplan
Based on these numbers, ADNOC L&S has revised its full-year projections higher. "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 (Dh18.4 billion) in value-accretive growth in energy-related maritime logistics over the medium term, to meet growing demand in and beyond the UAE."
"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," said Abdulkareem Al Masabi, CEO.
How individual ADNOC L&S divisions did
The logistics' share grew to Dh2 billion plus, up 55 per cent. This came through higher contributions from the Jack Up Barges 'driven by increased fleet size, higher rates and increased utilization. This was in tandem with expansion in the company's overall integrated logistics activities and owned fleet and new activities such as engineering, procurement and construction. (The EBITDA increased 59 per cent to Dh588 million.)
The shipping side of its operations helped with Dh922 million, a gain of 25 per cent. Through this period, charter rates for tankers, dry bulk and containers had firmed up, and there were also the 'incremental earnings' from the four new Very Large Crude Carriers (VLCC) added to the fleet.
"This was slightly offset by gas carriers with reduced earnings due to lower charterin activity and lower LNG Carrier time charter equivalent rates compared to Q1 2023," the company added in a statement. (EBITDA from shipping increased 37 per cent to Dh419 million.)
