ADNOC Logistics and Services (L&S) has announced exceptionally positive financial results for the first nine months of 2023, delivering a net profit of US $455 million (AED1,671 million). This represents a 162% year-on-year increase over the net profit of $173 million (AED635 million) achieved over the first nine months of 2022.
Total revenues generated by the company amounted to US $1,927 million (AED7,077 million) in this period, up 49% on the equivalent months of last year, while profitability on an EBITDA basis of $635d million (AED2,332 million) in the first nine months of 2023 represented a 124% increase, as a result of a strong performance from all business segments.
Commenting on the company’s results, Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “Our continued profitable growth, coupled with strong positive cash delivery, positions us to continue financing our transformational investment program whilst rewarding our shareholders for their support and trust in ADNOC L&S. Looking ahead, we continue to actively seek smart, well-timed growth opportunities that are in-line with our sustainability priorities to cement our position as a global energy maritime logistics leader.”
ADNOC L&S’ Integrated Logistics business achieved revenues of US $1,185 million (AED4,353 million), an increase of 108% following the acquisition of Zakher Marine International Holdings (ZMI) and delivered an EBITDA of US $371 million (AED1,362 million), an increase of 320% year-on-year.
The company’s Shipping division activities achieved a modest 1% increase in revenues, although the EBITDA growth was stronger, rising by 30% to US $239 million (AED878 million) year-on-year, supported by healthy charter rates for tankers and gas carriers. Additionally, revenues from the Marine Services segment grew 9% year-on-year to US $134 million (AED492 million). This generated an EBITDA of $27 million (AED99 million), an increase of 8% y-o-y.
ADNOC L&S is continuing to deliver on its ambitious growth strategy. During the third quarter of 2023 the company took delivery of eight self-propelled jack-up barges, six of which are owned and two chartered-in. With this expansion, the fleet of jack-ups owned and/or operated by ADNOC L&S has increased by 25% from 31 to 39. During the quarter, the company furthermore took delivery of two additional newbuild LNG dual-fuel VLCC type tankers, with another VLCC set to join the ADNOC L&S fleet later this year.
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