Latest news with #AdnocL&S
Gulf Today
5 days ago
- Business
- Gulf Today
Adnoc Logistics and Services Q2 revenue up 40% YoY to $1,258 million
Adnoc Logistics and Services (Adnoc L&S) reported record-breaking second-quarter (Q2) and first-half (H1) results for 2025, surpassing market expectations and demonstrating resilience and operational strength in a volatile market. Adnoc L&S's Q2 revenue increased by 40 per cent year-on-year (YoY) to $1,258 million (Dhs4,618 million) with EBITDA growing 31 per cent YoY to $400 million (Dhs1,470 million). Net profit for the quarter grew 14 per cent YoY to $236 million (Dhs866 million). In H1 2025, the company's revenue was $2,439 million (Dhs8,957 million), a 40 per cent YoY increase. EBITDA rose by 26 per cent YoY to $744 million (Dhs2,732 million), driven by robust performance across all business segments, sustaining EBITDA margin at 30 per cent. Net profit for H1 2025 was $420 million (Dhs1,544 million), up 5 per cent YoY, and up 18 per cent compared to H2 2024. Adnoc L&S's diverse and resilient business model enabled the company to deliver strong net profit and operating cash flow despite challenging shipping charter rate environments in Gas, Tankers, and Dry Bulk. Driven by strong performance in its core business segments and improving margins, Adnoc L&S has upgraded its full-year guidance, expecting faster growth due to continued momentum and enhanced operational efficiency across key areas. The company continues to enhance value and streamline operations across its diverse asset portfolio, while advancing integration and innovation through its shipping and logistics subsidiaries, Navig8 and Zakher Marine International (ZMI). Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said, 'We are proud to report our highest-ever quarterly results, underscoring the strength of our growth strategy and our ability to capitalise on diversified opportunities across our Integrated Logistics, Shipping and Services segments.' He added that this record-breaking performance reflects ADNOC L&S's continued outperformance of market expectations, driven by robust cash flows, strategic partnerships, and operational excellence. Al Masabi said the integrated logistics segment delivered a solid performance, with revenues rising 22 per cent YoY to $1,293 million (Dhs4,748 million), reflecting strong demand and strategic growth in key areas. As a result, EBITDA rose by 27 per cent YoY to $420 million (Dhs1,542 million), highlighting the segment's significant contribution to the company's overall results. This strong, profitable growth was mainly driven by continued strong utilisation and rates on Jack-up Barges (JUBs), improved profitability on the Integrated Logistics Solution Platform, and increased chartering activity beyond the ILSP. Additionally, Engineering, Procurement and Construction (EPC) projects, including the G-Island and Hail & Ghasha, contributed to strong revenue growth. For the shipping segment, it demonstrated exceptional growth, with revenues surging 89 per cent YoY to $981 million (Dhs3,602 million). This performance was primarily driven by the consolidation of revenue from the Navig8 tanker fleet, marking a key milestone in the company's strategic expansion. Shipping EBITDA increased by 25 per cent YoY to $290 million (AED1,067 million), despite substantially weaker market conditions than H1 2024, reflecting strong operational execution. A robust EBITDA margin of 30 per cent reinforces Adnoc L&S's ability to generate strong value even in less buoyant markets. The services segment continues to extend Adnoc L&S's diversified business model, with revenues rising 4 per cent YoY to $165 million (Dhs607 million). EBITDA grew 22 per cent YoY to $33 million (Dhs121 million), primarily driven by higher volumes at the Borouge Container Terminal and the share of profit from Navig8's bunkering business (Integr8). Meanwhile Analysts from all 16 major international financial institutions that cover Adnoc Logistics & Services are maintaining 'STRONG BUY' or 'BUY' recommendations on the Company's shares, citing a robust balance sheet, global expansion, and the strong history of and outlook for earnings growth. The recommendations are a strong endorsement of the Company's successful execution of its transformational growth strategy, driven by the recent closure of its 80 per cent acquisition of Navig8 that added 32 tankers to the Company's fleet and extended its international presence to 19 cities across 5 continents. Additionally, the Company continues to expand its fleet with upcoming deliveries of LNG Carriers, Very Large Ethane Carries, and Very Large Ammonia Carriers, and is also pursuing new partnerships such as its 15-year, $531 million agreement with Borouge to accelerate petrochemical exports from the UAE. WAM
Gulf Today
11-06-2025
- Business
- Gulf Today
Adnoc L&S, Borouge sign deal to boost UAE petrochemical exports
Borouge and Adnoc Logistics & Services (Adnoc L&S) have entered a 15-year strategic partnership that will support a significant increase in the production and export of petrochemicals from the UAE. The mutually beneficial service agreement will deliver a minimum guaranteed value of $531 million (Dhs1,950 million), supporting the next phase of Borouge's accelerated growth plans, driving operational cost savings over the full contract term, realising more than $50 million in cost savings and efficiencies in the first five years alone, and enhancing the company's supply chain network. The agreement covers port management, container handling, and feeder container ship services for the Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi. Adnoc L&S will manage the transportation of up to 70 per cent of Borouge's annual production, which will increase significantly following the completion of the Borouge 4 plant expansion. It will deploy a minimum of two dedicated container feeder ships to transport Borouge's products from Al Ruwais to the deepwater ports of Jebel Ali in Dubai and Khalifa Port in Abu Dhabi. Hazeem Sultan Al Suwaidi, CEO of Borouge, commented, 'This agreement builds on our long-standing collaboration with Adnoc L&S, a partnership that has been instrumental in meeting the evolving needs of our customers in high-growth markets. 'It brings significant benefits to Borouge; driving substantial operational cost savings and enhancing our Logistics Variable Cost (LVC), as well as complementing our existing rail operations and expanding the flexibility of our supply chain network.' 'With the rapid increase in our production capacity, we are advancing our capabilities in delivering differentiated products and solutions efficiently, while keeping pace with rising global demand.' As Borouge plans to ramp up production capacity by 1.4 million tonnes per annum by the end of 2026 through its Borouge 4 mega project, Borouge will become the world's largest single-site polyolefin complex. The partnership with Adnoc L&S will further enhance Borouge's supply chain efficiency as well as reinforcing Adnoc L&S' commitment to delivering innovative, integrated supply chain solutions that enhance trade, strengthen industrial resilience, and support the UAE's vision for economic diversification and global leadership. Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said, 'This comprehensive container terminal agreement marks a major milestone in our successful partnership with Borouge, delivering on Adnoc L&S' strategy to provide seamless, end-to-end logistics solutions that power the UAE's industrial growth and export ambitions. By leveraging our extensive maritime and logistics expertise, we are ensuring that Borouge's world-class petrochemical products reach global markets efficiently and competitively.' WAM
Khaleej Times
20-05-2025
- Business
- Khaleej Times
Adnoc L&S first quarter revenue increases 41%, Ebitda up 20%
Adnoc Logistics and Services, a global energy maritime logistics company, on Monday announced a 41 per cent rise in first quarter revenues to $1.181 billion (Dh4.339 billion). Earnings before interest, taxes, depreciation and amortisation (Ebitda) rose by 20 per cent to $344 million (Dh1.262 billion) in the same period, driven by robust performance across all business segments, sustaining the Ebitda margin at 29 per cent. Net profit for Q1 2025 was $185 million (Dh678 million), down five per cent compared to Q1 2024, mainly due to lower commercial shipping rates, but up three per cent compared to the previous quarter. 'Despite evolving market conditions, Adnoc L&S' strategic diversification and resilient business model supports delivery of strong net profit and operating cash flow,' the company said in a statement. Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said: '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 to $628 million (Dh2.307 billion), up 23 per cent compared to Q1 2024. 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 cent to $182 million (Dh669 million) compared to Q1 2024. Revenues from the shipping segment increased 87 per cent to $469 million (Dh1,722 million), compared to Q1 2024, driven primarily by the consolidation of revenue from the Navig8 tanker fleet. Shipping Ebitda increased 26 per cent to $143 million (Dh527 million) compared to the same period last year, generating a robust Ebitda margin of 31 per cent. Revenues from the services segment increased 9 per cent to $84 million (Dh310 million) compared to Q1 2024. Ebitda from the segment grew 52 per cent year-on-year to $18 million (Dh66 million), mainly driven by higher Borouge Container Terminal volumes and shares of profit from Integr8. Adnoc L&S continues to secure its future earnings. The Company has added 340 years of newly contracted revenues against its recent order of energy-efficient vessels, including $2.95 billion (Dh10.8billion) invested into eight new Liquified Natural Gas Carriers, nine Very Large Ethane Carriers, and four Very Large Ammonia Carriers. The company maintained its Ebitda and net income guidance for 2025, with continued strength and growth in integrated logistics business returns helping to offset weaker than anticipated shipping results in Q1 due to weaker shipping market rates, with an improving outlook for rates. Adnoc L&S anticipates an additional $3 billion+ of value-accretive organic investment spend by 2029, beyond the projects already announced and incorporated in guidance, applying the same investment return criteria. The company's dividend policy remains unchanged with a projected total dividend payable for 2025 of $287 million (a 5 per cent increase from 2024 annualised dividend), in line with the stated progressive dividend policy and subject to relevant approvals. The company targets a 2.0-2.5x net debt / Ebitda ratio over the medium term, with the recently committed hybrid capital instrument, debt, and free cash flows after dividends, the primary funding sources for committed and anticipated growth investment.
Gulf Today
12-05-2025
- Business
- Gulf Today
Adnoc L&S 1st quarter revenue up 41% YoY at Dhs4,339 million
Adnoc Logistics and Services (Adnoc L&S) announced on Monday financial results for the first quarter (Q1) ending March 31st, 2025. Adnoc L&S revenue for Q1 was $1,181 million (Dhs4,339 million), a 41 per cent year-on-year increase. Ebitda rose by 20 per cent to $344 million (Dhs1,262 million) in the same period, driven by robust performance across all business segments, sustaining the Ebitda margin at 29 per cent. Net profit for Q1, 2025 was $185 million (Dhs678 million), down 5 per cent compared to Q1, 2024, mainly due to lower commercial shipping rates, but up 3 per cent compared to the previous quarter. Despite evolving market conditions, Adnoc L&S' strategic diversification and resilient business model supports delivery of strong net profit and operating cash flow. The company continues to unlock additional value and efficiencies from its extensive portfolio of assets, while leveraging progressive synergies from its shipping and logistics subsidiaries, Navig8 and Zakher Marine International (ZMI). Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said, '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 to $628 million (Dhs2,307 million), up 23 per cent compared to Q1 2024. 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 cent to $182 million (Dhs669 million) compared to Q1 2024. Revenues from the Shipping segment increased 87 per cent to $469 million (Dhs1,722 million), compared to Q1 2024, driven primarily by the consolidation of revenue from the Navig8 tanker fleet. Shipping Ebitda increased 26 per cent to $143 million (Dhs527 million) compared to the same period last year, generating a robust Ebitda margin of 31 per cent. Revenues from the Services segment increased 9 per cent to $84 million (Dhs310 million) compared to Q1 2024. Ebitda from the services segment grew 52 per cent year-on-year to $18 million (Dhs66 million), mainly driven by higher Borouge Container Terminal volumes and shares of profit from Integr8. Earlier Adnoc Logistics & Services announced shareholder approval of all agenda items at its Annual General Meeting, including a final dividend of $136.5 million (Dhs501.3 million), bringing the 2024 full-year dividend to $273 million (Dhs1,001 million), a 5 per cent increase year-on-year, in line with Adnoc L&S' progressive dividend policy. The final dividend, equivalent to 6.78 fils per share, will be paid to shareholders on record as of 3rd April 2025. Dr. Sultan Al Jaber, Chairman of Adnoc L&S, said, '2024 was a transformative year for Adnoc L&S, marked by accelerated global expansion, record financial performance, and bold strategic moves. 'We continued to strengthen our fleet and completed a pivotal $1.0 billion (Dhs3.7 billion) acquisition of 80 per cent of Navig8, significantly enhancing our global reach and operational capabilities. Our strong performance in 2024 allowed us to deliver outstanding shareholder value, including a 5 per cent increase in our full-year dividend, while advancing sustainability, innovation, and industry leadership.' He added that Adnoc L&S is positioned for continued growth, driven by organic expansion, strategic acquisitions, and cutting-edge technology investments. 'With a growing fleet of next-generation vessels and a steadfast commitment to efficiency and sustainability, we remain focused on delivering Adnoc's energy to the world while contributing to the UAE's economic ambitions. The momentum we have built sets the stage for an even more exciting future,' Dr. Al Jaber stated. Adnoc L&S delivered exceptional financial growth, driven by strong market demand, strategic acquisitions, and operational efficiency. Revenue increased 29 per cent year-on-year to over $3.5 billion (Dhs13 billion), while net profit rose 22 per cent to $756 million (Dhs2.7 billion). Ebitda grew 31 per cent year-on-year, reflecting Adnoc L&S' ability to scale operations while maintaining profitability. Since its 2023 IPO, the company's share price has increased by 178 per cent, significantly outperforming the ADX and strengthening investor trust in Adnoc L&S' long-term strategy.
Gulf Today
21-04-2025
- Business
- Gulf Today
Adnoc listed firms to distribute over $6.7b in annual dividends
Adnoc Group's publicly traded portfolio companies collectively endorsed over $6.7 billion (Dhs24.6 billion) in annual dividend payments to shareholders for 2024, reflecting their strong financial health and commitment to shareholders value. At the Annual General Meetings (AGM) of all six listed companies, shareholders voted overwhelmingly to approve the dividend proposals brought forth by each companies' Boards of Directors. Each of the six listed companies prioritize strong returns and value creation for shareholders, while advancing their strategies to deliver profitable growth. Adnoc Distribution: At its AGM on March 26, Adnoc Distribution shareholders approved a final cash dividend of $350 million (Dhs1.3 billion) for the second half of 2024, bringing total annual dividends to $700 million (Dhs2.6 billion), equal to 20.57 fils per share. Since its IPO in 2017, Adnoc Distribution has paid out $4.8 billion (Dhs17.6 billion) in dividends and delivered a 92% total shareholder return as of the end of 2024. The company is planning capital expenditures of $250-300 million (Dhs917.5 million-1.1 billion) in 2025 while maintaining its dividend policy to distribute to shareholders at least $700 million (Dhs2.6 billion) or 75% of net profit, whichever is higher. Adnoc Gas: Adnoc Gas shareholders approved the companies' proposal to distribute $1.7 billion (Dhs6.2 billion) for the second half of the year, raising the 2024 annual dividend to $3.41 billion (Dhs12.5 billion), the largest distribution by any issuer on the Abu Dhabi Securities Exchange (ADX). The dividend payout and the company's strong 2024 results, which include record adjusted net income of $5 billion (Dhs18.35 billion), propelled it to deliver 19% total shareholder returns for the year. Adnoc Gas is also positioned for potential inclusion in the MSCI and FTSE indices later this year following the company's landmark secondary share offering of 3.1 billion shares-the largest of its kind in ADX history and the UAE's largest secondary offering. Adnoc Drilling: Shareholders of Adnoc Drilling approved the proposed 2024 annual dividend distribution of $788 million (Dhs2.9 billion) at its AGM, including a $394 million (Dhs1.4 billion) dividend for the second half of the year. This represents a 10% increase compared to the previous year, driven by the company's solid financial performance. In 2025, the company aims to enhance operational capacity, targeting revenue between $4.6-$4.8 billion (Dhs16.9-17.6 billion). The company plans to expand its fleet to over 148 rigs by 2026 and integrate AI-enabled technologies to boost efficiency. Adnoc L&S: Adnoc L&S shareholders approved a final 2024 dividend payment of $136.5 million (Dhs501 million), bringing total dividend payments for the year to $273 million and reflecting a 5% year-on-year increase as aligned with its progressive dividend policy. Between its 2023 IPO and the end of 2024, Adnoc L&S delivered more than 178% in total shareholder returns (including share price appreciation and dividends paid), significantly outperforming the ADX and reinforcing investor trust in its long-term strategy. Borouge: At its in-person AGM on April 7, Borouge shareholders approved a final 2024 dividend of $650 million (Dhs2.4 billion), bringing the total annual payout to $1.3 billion (Dhs4.77 billion), equivalent to 15.88 fils per share. Additionally, shareholders authorised a share buyback programme of up to 2.5% of outstanding shares, reflecting the company's strong confidence in its future prospects and the significant upside potential beyond the current share price. At the AGM, Dr Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Managing Director and Group CEO of Adnoc, and Borouge Chairman, spoke about the proposed creation of Borouge Group International that will bring together Borouge and Borealis and acquire Nova Chemicals. The new company has been designed to deliver consistently strong dividends and significant near-term growth, with a production capacity of 13.6 million tonnes - nearly tripling Borouge's current capacity. Borouge also announced it will increase its 2025 dividend to at least 16.2 fils per share, and following completion of the Borouge Group International transaction, the new entity intends to distribute an estimated total annual dividend of $2.2 billion (Dhs8.1 billion), equivalent to a minimum of 16.2 fils per share from 2026 to 2030. Fertiglobe: Fertiglobe shareholders approved the proposed payout of a $125 million (Dhs459 million) dividend for the second half of 2024, bringing total 2024 dividends to $275 million (Dhs1.01 billion), equal to 12.2 fils per share. Since its 2021 IPO, the company has distributed $2.5 billion (Dhs 9.2 billion) to shareholders, delivering one of the highest total shareholder returns on the ADX over that time. WAM
