Home Industry Logistics ADNOC L&S nine-month net profit up 162%, announces interim dividend The company’s board of directors approved an interim cash dividend of $65m (Dhs239m) for Q2 2023, equivalent to 3.2 fils per share by Gulf Business November 14, 2023 Image courtesy: WAM/X ADNOC Logistics and Services (ADNOC L&S) said its nine-month profit soared by 162 per cent year-on-year (YoY) to $455m (Dhs1.7bn) or $0.06 per share compared to $173m (Dhs635m for the corresponding period a year ago. The Abu Dhabi-listed company’s revenues in the nine months to September 30 jumped by nearly 50 per cent to reach $1.92bn (Dhs7.1bn) compared to the same period a year earlier. The company reported $635m (Dhs2.3bn) in earnings before interests, taxes, depreciation and amortisation (EBITDA) during the first nine months of 2023, a 124 per cent YoY increase due to a strong performance from all business segments. “This was driven in part by an EBITDA margin expansion of 11 percentage points to 33 per cent in the first nine months of 2023, resulting from strength in the shipping and jack-up barges markets, and targeted improvements in operating costs and efficiencies,” ADNOC L&S said in a bourse filing. Quarterly, the company’s revenue grew by 30 per cent YoY to $702m (Dhs2.6bn), driven by strong growth in the integrated logistics segment while EBITDA surged by 57 per cent YoY to $218M (Dhs801m) in the third quarter. Furthermore, ADNOC L&S said its net profit for the third quarter rose by 46 per cent YoY to $148m (Dhs544m). “Our continued profitable growth coupled with strong positive cash delivery positions us to continue financing our transformational investment program whilst rewarding our shareholders for their support and trust in ADNOC L&S,” said Abdulkareem Al Masabi, CEO of ADNOC L&S. Last month, the company’s board of directors approved an interim cash dividend of $65m (Dhs239m) for Q2 2023, equivalent to 3.2 fils per share. ADNOC L&S’s smart growth strategy Al Masabi said ADNOC L&S will continue to actively seek smart well-timed growth opportunities that are in line with the company’s sustainability priorities to cement its position as a global energy maritime logistics leader. The company took delivery of eight self-propelled jack-up barges, six owned and two chartered-in. With this expansion, the fleet of jack-up barges owned and/or operated by ADNOC L&S has increased by 25 per cent from 31 to 39, cementing the company’s status as one of the biggest operators of the world’s largest fleet of self-elevating and self-propelled jack-up barges. ADNOC L&S took delivery of two additional newbuild LNG dual-fuel Very Large Crude Carriers (VLCCs) in Q3 2023, increasing the total delivered year-to-date to three. The crude carriers’ dual-fuel capability allows them to run on the transitional fuel LNG, as the company works towards meeting ADNOC Group’s 2045 net zero target. The fourth vessel is set to join the ADNOC L&S fleet later this year. Read: ADNOC L&S secures $975m contract to build offshore artificial island Tags Abu Dhabi ADNOC L&S energy Logistics net profit You might also like ADNOC L&S awards $4.4bn contracts to build 23 supertankers Abu Dhabi’s IHC posts Dhs18bn in nine-month net profit UAE’s ADNOC agrees multi-year LNG supply deal with SEFE ADNOC awards $490m contract to expand world’s largest 3D seismic survey