ADNOC Logistics and Services (ADNOC L&S) has recently announced “exceptional” financial results for the first half of 2023 with a net profit of US $307 million, representing a more-than fourfold increase compared to the net profit of US$72 million recorded in the first half of 2022. The company also recorded revenues of US $1,225 million in the first half of 2023, marking an increase of 62 per cent compared to the first half of 2022, with growth right across the company’s logistics, shipping and marine services businesses.
ADNOC L&S’ Integrated Logistics segment reported revenues of US$729 million in the first half of 2023, an increase of 136 per cent year-on-year, following the acquisition of Zakher Marine International (ZMI,) while the shipping segment achieved revenues of US$408 million in this period an increase of 9%, primarily driven by higher charter rates and increased operational days for its tanker and gas carriers. This growth was partially offset by a lower contribution from dry bulk shipping due to reduced charter rates.
The ADNOC L&S Shipping segment reported EBITDA of US $168 million in the first half of 2023, reflecting an increase of 61 per cent against the equivalent months of 2022, a performance which was further supported by a 7 per cent reduction in direct costs during this period.
The company’s Marine Services segment reported revenues of US $88 million in the first half of 2023, an increase of 19 per cent compared to the same months of 2022. This sector achieved an EBITDA of US $17 million in the first half of 2023, an increase of 70 per cent against the first half of last year.
ADNOC L&S has taken delivery of two of the four newbuild LNG dual-fuel VLCC tankers scheduled to be delivered this year as part of its strategic fleet expansion. The company has committed approximately US $2 billion to building more environmentally efficient vessels and has successfully reduced the carbon intensity of its owned fleet by more than 20 per cent between 2018 and 2022.
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