ADNOC Logistics and Services (ADNOC L&S) Plc announced on Monday its financial results for the first quarter (Q1) ending March 31, 2025. ADNOC L&S revenue for Q1 was AED4,339 million (AED4.339 billion or $1.181 billion), a 41 percent year-on-year increase.
EBITDA rose by 20 percent to AED1.262 billion ($343.6 million) in the same period, driven by robust performance across all business segments, sustaining the EBITDA margin at 29 percent.
Net profit or Q1 2025 was AED678 million ($184.6 million), down 5 percent compared to Q1 2024, mainly due to lower commercial shipping rates, but up 3 percent compared to the previous quarter.
Despite evolving market conditions, ADNOC L&S’ strategic diversification and resilient business model supports delivery of strong net profit and operating cash flow. The company continues to unlock additional value and efficiencies from its extensive portfolio of assets, while leveraging progressive synergies from its shipping and logistics subsidiaries, Navig8 and Zakher Marine International (ZMI).
Read more: UAE’s ADNOC raises $1.5 billion through debut sukuk
Integrated logistics growth
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said, “ADNOC L&S continues to deliver robust financial results and significant business growth. Our recent acquisition of 80 percent of Navig8, and the integration of their capabilities into our expansive services portfolio, further strengthens our customer offerings and international footprint, unlocking new shareholder value.
“Moving forward, we will continue to deliver on our transformational growth strategy while leveraging cutting-edge technologies and AI solutions to further enhance operational efficiencies.”
Revenues from the integrated logistics segment increased to AED2,307 million ($628 million), up 23 percent compared to Q1 2024.
The increase was largely driven by higher revenues from Engineering, Procurement and Construction (EPC) projects including the Al Omairah Island and Hail & Ghasha projects, and improved utilisation and rates earned from Jack-Up Barges (JUBs). Integrated Logistics’ EBITDA rose by 15 percent to AED669 million ($182 million) compared to Q1 2024.
Shipping segment sees significant revenue increase
Revenues from the shipping segment increased 87 percent to AED1,722 million ($469 million), compared to Q1 2024, driven primarily by the consolidation of revenue from the Navig8 tanker fleet.
Shipping EBITDA increased 26 percent to AED527 million ($143 million) compared to the same period last year, generating a robust EBITDA margin of 31 percent.
Revenues from the services segment increased 9 percent yo AED310 million ($84 million) compared to Q1 2024. EBITDA from the services segment grew 52 percent year-on-year to AED66 million ($18 million), mainly driven by higher Borouge container terminal volumes and shares of profit from Integr8.
