ADNOC Logistics & Services (ADNOC L&S), a global energy maritime logistics company, announced today that it has signed an AED4.0-7.3 billion ($1.1-2 billion) hybrid capital instrument to support the delivery of its transformational growth strategy.
The initial drawing against the instrument will be $1.1 billion, leaving a $0.9 billion capacity available for investment until December 31, 2026.
“The combination of existing cash, the new finance facility and the cash flow from our contracted vessels ensures that we are adequately funded to capitalize on value-accretive growth opportunities in line with our strategy of building a leading energy maritime and logistics company,” stated Captain Abdulkareem Al Masabi, CEO of ADNOC L&S.
Navig8 acquisition
The company said that it will utilize around $1 billion of the financing to fund the acquisition of Navig8. The remainder is available to fund announced or new investments. Navig8 is an international shipping pool operator and commercial management company with a modern fleet of 32 tankers and a presence in 15 cities across five continents.
Following the announcement of the hybrid capital instrument, ADNOC L&S announced the completion of its acquisition of an 80 percent stake in Navig8 for $1.04 billion, with a contractual commitment to acquire the remaining 20 percent in mid-2027. The company will acquire the remaining stake for deferred consideration of between $335 million and $450 million.
The acquisition enables ADNOC L&S to expand its service portfolio by adding commercial pooling and bunkering services, internationalizing commercial reach and technical management, and extending ESG-focused industrial and digital solutions.
It will also boost ADNOC L&S earnings per share by at least 20 percent in 2025 compared to 2024. The company will also unlock a significant value of at least $20 million in synergies per annum from 2026.
“By integrating Navig8’s extensive fleet and global presence, we can enhance our service offerings, generating substantial value for customers and shareholders. This strategic move unlocks new opportunities for commercial growth and expansion into new markets, reinforcing our position as a leading global energy maritime logistics company,” added Al Masabi.
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Over $5 billion in growth investments
ADNOC L&S has committed to growth investments of over $5 billion since its IPO in June 2023, delivering on its committed transformational growth strategy announced at the IPO. Many of these investments are against long-term contracted income, with over 340 years of contracted revenues committed during 2024.
By raising equity financing at a competitive cost, ADNOC L&S extends its capacity to continue to deliver growth investments within that target leverage range, securing investor returns on equity while creating capacity for further valuable growth.
Societe Generale arranged the hybrid capital instrument with participation from Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Crédit Agricole Corporate and Investment Bank, BBVA and DBS Bank.
