UAE’s energy logistics provider ADNOC Logistics & Services (ADNOC L&S) has announced its financial results for the second quarter and first half of 2024. The company’s performance showcases a strong and sustained growth trajectory.
During the first half of 2024, ADNOC Logistics & Services recorded a net profit of AED1,473 million ($401 million), equivalent to AED0.20 ($0.05) per share, representing a 31 percent increase compared to the same period in 2023.
The company reported revenues of AED6,390 million ($1,740 million), a 42 percent rise from the first half of 2023. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 42 percent to AED2,170 million ($591 million), driven by robust performance across all business segments, maintaining EBITDA margins at a healthy 34 percent.
Strong Q2 2024 results
In the second quarter of 2024, the company’s revenue grew by 42 percent year-on-year to AED3,302 million ($899 million), while EBITDA increased by 40 percent year-on-year to AED1,124 million ($306 million). Net profit for the second quarter saw a 28 percent year-on-year increase, reaching AED764 million ($208 million).
Executing transformational growth strategy
This strong financial growth has been fueled by the ongoing implementation of ADNOC L&S’ transformational growth strategy. The company plans to invest over AED18.4 billion ($5 billion) in value-accretive growth opportunities in energy-related maritime logistics by the end of 2028. Notably, the company has already committed over 50 percent of this strategic investment target one year after its record-breaking IPO, including significant investments in response to long-term contracted demand.
Read more: UAE’s ADNOC L&S invests $1.9 billion in supersize ethane carriers and ammonia vessels
Targeting value-accretive investments
According to Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, the sustained execution of the company’s transformational growth strategy has been driving its financial performance across all business segments, with strong growth in revenues and net profit. To meet the growing demand for low-carbon energy sources in the UAE and beyond, the company has continued to expand its market-leading fleet through significant new energy-efficient vessel construction contracts, as well as geographical expansion through the acquisition of Navig8.
Al Masabi further added that the company will continue to target value-accretive investments in order to serve an increasing global customer base and deliver long-term value to their shareholders.
Segment-wise performance
The company’s Integrated Logistics segment recorded a 55 percent increase in revenues to AED4,157 million ($1,132 million) during the first half of 2024. The Shipping segment saw a 27 percent revenue growth to AED1,906 million ($519 million), while the Marine Services segment experienced a 1 percent increase in revenues to AED327 million ($89 million), with a 64 percent EBITDA growth to AED107 million ($29 million).
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