Abu Dhabi’s ADNOC L&S agrees to acquire maritime firm Navig8

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Abu Dhabi’s ADNOC Logistics & Services (ADNOC L&S) has agreed to acquire maritime logistics firm Navig8 in a deal valued at $1.49bn, as it seeks to expand its global presence.

Under the deal, ADNOC L&S said it will acquire an 80 per cent stake for $1.04bn, with economic ownership transfer effective from January 1, 2024. The Abu Dhabi maritime logistics firm will buy the remaining 20 per cent stake in 2027 for a deferred consideration of $335m to $450m, according to a bourse filing on Monday.

“This value accretive acquisition marks another major milestone as we deliver on our transformational growth strategy. The addition of Navig8’s presence in 15 international cities, a fleet of tankers and world-class services will expand our geographical footprint and service offering, cementing our position as a leading global energy maritime logistics and services company,” said Abdulkareem Al Masabi, the CEO of ADNOC L&S.

The acquisitions will give ADNOC L&S access to Navig8’s fleet of 32 tankers and global footprint in 15 cities across five continents.

Navig8 delivered more than $400m (Dhs1.5bn) earnings before interest, taxes, depreciation, and amortisation (EBITDA) in 2023, equivalent to 44 per cent of ADNOC L&S’s EBITDA in the same period.

The first full year of investment is projected to boost “earnings per share by at least 20 per cent for ADNOC L&S shareholders”. Following the completion of the deal, the current Navig8 management team will continue to operate the business on a day-to-day basis.

ADNOC L&S revised its growth guidance upwards in Q1 2024 as it looks to invest more than $5bn in energy-related maritime logistics over the medium term, to meet growing demand in the UAE and beyond.

The company’s net profit in the January-March period jumped 34 per cent year-on-year to reach $194m while its revenue increased by 42 per cent to $840m. ADNOC L&S’s $769m initial public offering in 2023 was oversubscribed 163 times.

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