Dubai: The fleet operator ADNOC L&S churned out a strong 38% revenue growth to Dh9.79 billion for the first nine months, with an expanding fleet size and project flows showing in the numbers.
The profit tally gained 27% to Dh2.11 billion for the period, brought on from an EBITDA of Dh3.18 billion.
ADNOC L&S keeps adding to its fleet, with 23 new ‘energy efficient’ vessels committed to this year, including 8-10 LNG carriers.
Going forward, there will be a further numbers' boost with the completion of its Navig8 buy. Navig8 is a shipping services management company, with 30 plus owned vessels and more than 85 under management. The regulatory approvals for its purchase is expected to be completed by March 31, 2025.
"The expected contribution of Navig8 will further boost our profile as a global energy maritime logistics company, while our strong balance-sheet provides for further organic and inorganic value-accretive growth opportunities,” said Capt. Abdulkareem Al Masabi, CEO of ADNOC L&S.
The transaction once done will be 'immediately value accretive' and likely to boost ADNOC L&S’s earnings per share by at least 20% in the first full year.
The ADNOC entity paid an interim dividend of Dh501.3 million on October 31, which is 6.78 fils per share.
Shipping pulls in high numbers
Revenues from the shipping segment were 23% up to Dh2.73 billion, helped by 'strong charter rates' for tankers and dry bulk cargo. Additional revenues also flowed in from the four new Very Large Crude Carriers (VLCCs) acquired in 2023.
"This was slightly offset by a reduction in profits from gas carriers due to cessation of spot charter-in operations and technical off-hire days in Q1-2024," said a statement.
ADNOC L&S’ integrated logistics division remains the heavy hitter, with Dh6.13 billion in revenue and up 51%. This was brought about by 'improved utilization of Jack-Up Barges (JUBs) coupled with the expanded fleet'. The logistics volumes also turned in higher, and there was the accelerated Hail and Ghasha project delivery. The engineering, procurement and construction (EPC) side of things made progress, 'in particular the contribution of the G-Island project (expected to be 70-75% complete by year-end).
