ADNOC Logistics and Services plc (ADNOC L&S), a global energy maritime logistics leader, delivered on a full-year basis a net profit of AED2,277 billion ($620 million), or AED0.29 ($0.08) per share, representing a 138 percent year-on-year (YoY) increase over a net profit of AED959 million ($261 million) in 2022.
In a statement, the company announced its Q4 and full year 2023 financial results. It generated revenues of AED10,118 million ($2,755 million) in 2023, marking a 41 percent increase over 2022.
Strong EBITDA growth
EBITDA increased 93 percent YoY to AED3,217 million ($876 million) as all business segments continued to perform strongly. This was driven by a 9 percentage point EBITDA margin expansion to 32 percent in 2023 against the same period last year, resulting mainly from the growth in the Integrated Logistics segment in addition to continued strong performance in the Shipping and Marine Services segments.
On a quarterly basis, fourth-quarter net profit grew by 89 percent YoY to AED606 million ($165 million) while revenue increased by 26 percent YoY to AED3,041 million ($828 million) mainly driven by continued momentum in the Integrated Logistics segment. Q4 EBITDA increased by 43 percent YoY to AED889 million ($242 million).
Revenues from the Integrated Logistics segment increased 88 percent YoY to AED6,386 million ($1,739 million). In addition, revenues from the Shipping segment softened by 3 percent YoY to AED3,081 million ($839 million).
Meanwhile, revenues from the Marine Services segment grew 6 percent YoY to AED650 million ($177 million).
Distribution of cash dividends
ADNOC L&S remains committed to delivering sustainable, profitable growth and attractive shareholder returns. In line with its approved dividend policy, the Company’s Board of Directors has recommended distributing a cash dividend of AED477 million ($130 million), equivalent to 6.45 fils per share, for the second half of 2023. This recommendation will be submitted for shareholders’ approval at the Annual General Assembly Meeting. Subject to shareholders’ approval, the total dividend for Q2 and H2 2023 is expected to be AED716 million ($195 million), equivalent to 9.68 fils per share.
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