ADNOC Logistics and Services (ADNOC L&S) posted in Q1 2024 a net profit of AED712 million ($193.8 million), equivalent to AED0.10 ($0.03) per share. This represents a 34 percent increase compared to the net profit of AED533 million ($145.1 million) achieved in Q1 2023. The company’s revenues for Q1 2024 reached AED3.085 billion ($839.9 million), reflecting a 42 percent growth compared to Q1 2023.
Throughout the quarter, all business segments demonstrated robust performance, leading to a 44 percent increase in EBITDA, which amounted to AED1.050 billion ($285.87 million), when comparing the corresponding quarters.
As a result of these strong Q1 results and the ongoing growth across all business segments, the company has revised its guidance upward.
ADNOC L&S attributes its strong financial performance to its ambitious transformational growth strategy. As part of this strategy, the company plans to invest over $5 billion in energy-related maritime logistics, aiming to meet the increasing demand both within and beyond the UAE over the medium term.
Read more: ADNOC Gas net income surges 21 percent in Q1 2024 at $1.18 billion
Integrated Logistics segment
The Integrated Logistics segment experienced remarkable growth, with revenues rising to $546 million (AED2,005 million) in Q1 2024, a 55 percent increase compared to Q1 2023. This exceptional performance can be attributed to higher volumes across all business lines, increased contribution from Jack Up Barges (JUBs) due to fleet expansion, higher rates, and enhanced utilization. Additionally, the expansion of overall Integrated Logistics activities and owned fleet, along with the addition of new business activities like Engineering, Procurement, and Construction (EPC), contributed to this growth. The segment’s EBITDA also increased by 59 percent to $160 million (AED588 million) during the same period.
Shipping segment
The Shipping segment witnessed a revenue growth of 25 percent to reach AED922 million during the comparable period. This growth was driven by strong charter rates for Tankers, Dry Bulk, and Containers, as well as the additional earnings generated by four newly added Very Large Crude Carriers (VLCC) to the fleet.
However, the segment experienced slightly reduced earnings from Gas Carriers due to lower charter-in activity and lower LNG Carrier time charter equivalent rates compared to Q1 2023. Nevertheless, the segment’s EBITDA increased by 37 percent to AED419 million, resulting in a 4-percentage point expansion of the EBITDA margin to 45 percent.
Marine Services segment
The Marine Services segment achieved a 7 percent growth in revenues, reaching AED158 million. This growth was driven by increased volumes in petroleum ports operations and the execution of a Marine Terminal Operations contract with ADNOC Offshore. The segment’s EBITDA amounted to AED37 million, representing a 28 percent increase during the same period.
For more news on banking & finance, click here.
