Strategic expansion leads to another solid quarter for ADNOC L&S
However, the Abu Dhabi-based global energy maritime logistics company's net profit for Q1 2025 was US$185 million, down 5 per cent YoY from US$194 million, but up 3 per cent sequentially from US$180 million in Q4 2024. The dip was attributed to lower commercial shipping rates.
EBITDA margin was 29 per cent. And despite evolving market conditions, ADNOC L&S said its 'strategic diversification and resilient business model supports delivery of strong net profit and operating cash flow'.
During January this year, ADNOC L&S completed an acquisition of an 80 per cent stake in Navig8 for approximately US$1 billion, adding a modern fleet of 32 tankers and expanding the company's services portfolio.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, commented: 'ADNOC L&S continues to deliver robust financial results and significant business growth.
'Our recent acquisition of 80 per cent of Navig8, and the integration of their capabilities into our expansive services portfolio, further strengthens our customer offerings and international footprint, unlocking new shareholder value.
'Moving forward, we will continue to deliver on our transformational growth strategy while leveraging cutting-edge technologies and AI solutions to further enhance operational efficiencies.'
Revenues from the integrated logistics segment increased 23 per cent to US$628 million. The increase was largely driven by higher revenues from Engineering, Procurement and Construction (EPC) projects, including the Al Omairah Island and Hail & Ghasha projects, and improved utilisation and rates earned from Jack-Up Barges (JUBs). Integrated Logistics' EBITDA rose by 15 per centto US$182 million.
Shipping revenue increased 87 per cent to US$469 million, primarily due to consolidation of revenue from the Navig8 tanker fleet. Shipping EBITDA increased 26 per cent to US$143 million, generating an EBITDA margin of 31 per cent.
Services revenue increased 9 per cent to US$84 million. EBITDA grew 52 per cent YoY to US$18 million, driven by higher Borouge Container Terminal volumes and shares of profit from Integr8.
The company has added 340 years of consolidated newly contracted revenues against its recent order of energy-efficient vessels, including $2.95 billion invested into eight new Liquified Natural Gas Carriers, nine Very Large Ethane Carriers, and four Very Large Ammonia Carriers.
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