Latest news with #AdnocLS
Zawya
a day ago
- Business
- Zawya
ADNOC's logistics unit records 14% growth in Q2 net profit
Adnoc Logistics and Services (Adnoc L&S), a global energy maritime logistics company, reported record-breaking second quarter (Q2) and first-half (H1) results for 2025, surpassing market expectations. Adnoc L&S Q2 revenue increased by 40 per cent year-on-year (YoY) to $1,258 million with EBITDA growing 31 per cent YoY to $400 million. Net profit for the quarter grew 14 per cent YoY to $236 million. In H1 2025, the company's revenue was $2,439 million, a 40 per cent YoY increase. EBITDA rose by 26 per cent YoY to $744 million, driven by robust performance across all business segments, sustaining EBITDA margin at 30 per cent. Net profit for H1 2025 was $420 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). 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. This record-breaking performance reflects Adnoc L&S's continued outperformance of market expectations, driven by robust cash flows, strategic partnerships, and operational excellence. In line with this momentum, our upgraded full-year guidance demonstrates our confidence in delivering long-term value to shareholders.' STRONG SEGMENTAL GROWTH FOR H1 2025 Integrated Logistics: The segment delivered a solid performance, with revenues rising 22 per cent YoY to $1,293 million, reflecting strong demand and strategic growth in key areas. As a result, EBITDA rose by 27 per cent YoY to $420 million, highlighting the segment's significant contribution to the company's overall results. This profitable growth was mainly driven by continued utilisation and rates on Jack-up Barges (JUBs), improved profitability on Integrated Logistics Solution Platform, and increased chartering activity beyond ILSP. Additionally, Engineering, Procurement and Construction (EPC) projects, including the G-Island and Hail & Ghasha, contributed to revenue growth. Shipping: The segment demonstrated growth, with revenues surging 89 per cent YoY to $981 million. This performance was primarily driven by the consolidation of revenue from the Navig8 tanker fleet, marking a milestone in the company's strategic expansion. Shipping EBITDA increased by 25 per cent YoY to $290 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. Services: The segment continues to extend Adnoc L&S's diversified business model, with revenues rising 4 per cent YoY to $165 million. EBITDA grew 22 per cent YoY to $33 million, primarily driven by higher volumes at the Borouge Container Terminal and the share of profit from Navig8's bunkering business (Integr8). STRATEGIC UPDATE Adnoc L&S remains well-positioned to capitalise on opportunities across the energy and maritime sectors, actively pursuing strategic partnerships and joint ventures to extend its footprint in key growth markets. In Q2, the company signed a 15-year, $531 million agreement with Borouge, supporting the UAE's industrialisation strategy. The partnership will accelerate the growth of UAE petrochemical exports by providing port management, container handling, and feeder container ship services for the Borouge Container Terminal in Al Ruwais Industrial City. The company continues to reinforce its long-term earnings potential through strategic fleet expansion against long-term contracts. Following the delivery of its second LNG carrier in Q2 2025, Adnoc L&S is set to receive its first Very Large Ethane Carrier (VLEC) and the third of six LNG carriers in Q3 2025. Together with additional newbuild orders, these vessels are projected to strengthen the company's future earnings base, with over $26 billion of future income already contracted. TECHNOLOGY AND AI ADOPTION Technological innovation is a key driver of growth, and Adnoc L&S recently launched Smart Ports, an AI-powered port management system developed in collaboration with Innovez One. The system streamlines operations by reducing resource allocation time from three hours to a targeted 45 seconds, enhancing efficiency and potentially increasing jetty utilisation by 20 per cent, to deliver significant cost savings and improved operational performance. MEERAi, Adnoc's advanced AI solution, was deployed during Adnoc L&S's recent Board Meeting to support faster, better-informed executive decision-making. In addition, Adnoc L&S has partnered with Digital Ocean to introduce a digital platform to streamline the chartering of offshore support vessels, delivering seamless access to offshore capabilities. The solution automates charter-in vessel tendering and contracts management, features billing integration, and provides real-time visibility into vessel status, maintenance, and contract performance. -OGN / TradeArabia News Service
Zawya
5 days ago
- Business
- Zawya
Adnoc JV receives first VLEC in major fleet expansion
Adnoc Logistics and Services (Adnoc L&S) today (August 14) announced that AW Shipping, its joint venture with Wanhua Chemical Group, has taken delivery of Gas Yongjiang, the first of nine state-of-the-art Very Large Ethane Carriers (VLECs) from Jiangnan Shipyard in China. The vessel will commence operations under a 20-year time charter agreement. The remaining eight VLECs are scheduled for delivery between 2025 and 2027. Upon full deployment, the fleet is projected to generate approximately $4 billion (AED14.7 billion) in revenue through long-term contracts totaling 180 years. Once all nine vessels are delivered, AW Shipping will operate one of the world's largest VLEC fleets, it stated. Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of Adnoc L&S, said: "The delivery of Gas Yongjiang, the first VLEC to join the AW Shipping fleet, marks a significant milestone in our fleet expansion and entry into the global ethane shipping market." "These nine vessels, purpose-built to transport ethane, a critical feedstock for the global petrochemical industry, will boost our capacity to meet growing demand, particularly in fast-growing Asian markets and reinforce our leadership in lower-carbon energy transport," he stated. Gas Yongjiang is one of the world's largest ethane carriers, with a capacity of 98,000 cu m. The vessel has optimised hull designs and integrated energy-saving technologies significantly reduce emissions, driving sustainable, value-driven growth. Kou Guangwu, President & CEO of Wanhua Chemical Group, said: "Since the beginning of our collaborative journey in 2018, the partnership between Wanhua Chemical and Adnoc L&S has grown from raw material supply to encompass a broad spectrum of services, including shipping operations." "Both companies are ready to further strengthen their cooperation for high-value chemical projects while fostering synergies that leverage resource integration and compatible strengths to achieve strategic win-win outcomes," he noted. Lin Ou, Chairman of Jiangnan Shipyard, said: "The naming of Gas Yongjiang and Al Reef reflects Jiangnan Shipyard's commitment to building intelligent, high-value, and energy-efficient vessels. Backed by the trust of Adnoc L&S and Wanhua Chemical, we continue to pursue joint innovation and customer-focused collaboration to unlock new possibilities in intelligent manufacturing." Adnoc L&S also received Al Reef, the third of six state-of-the-art LNG carriers from Jiangnan Shipyard. The arrival of the vessel underscores the company's strategy to modernise its gas fleet and strengthen its role in meeting global energy demand. The naming and delivery ceremony of both vessels was attended by senior executives from Adnoc L&S, Wanhua Chemical Group, and Jiangnan Shipyard. Sharifa Al Mulla, the ceremonial sponsor of both vessels, is the first Emirati female officer to serve aboard the Adnoc L&S commercial shipping fleet.
Trade Arabia
12-05-2025
- Business
- Trade Arabia
Adnoc L&S Q1 revenue up 41pc year-on-year
Adnoc Logistics and Services (Adnoc L&S), a global energy maritime logistics company, reported a 41% year-on-year increase in Q1 revenue to $1,181 million, while EBITDA rose by 20% to $344 million. The company's net profit for Q1 2025 was $185 million, down 5% from Q1 2024 due to lower commercial shipping rates, but up 3% from the previous quarter. Despite market conditions, Adnoc L&S's strategic diversification and resilient business model ensure strong net profit and operating cash flow. The company is unlocking additional value and efficiencies from its extensive portfolio of assets and leveraging synergies from its shipping and logistics subsidiaries, Navig8 and Zakher Marine International. 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% 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." SEGMENTAL FINANCIAL PERFORMANCE FOR Q1 2025 Revenues from the Integrated Logistics segment increased to $628 million (AED2,307 million), up 23% 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% to $182 million (AED669 million) compared to Q1 2024. Revenues from the Shipping segment increased 87% to $469 million (AED1,722 million), compared to Q1 2024, driven primarily by the consolidation of revenue from the Navig8 tanker fleet. Shipping EBITDA increased 26% to $143 million (AED527 million) compared to the same period last year, generating a robust EBITDA margin of 31%. Revenues from the Services segment increased 9% to $84 million (AED310 million) compared to Q1 2024. EBITDA from the Services segment grew 52% year-on-year to $18 million (AED66 million), mainly driven by higher Borouge Container Terminal volumes and shares of profit from Integr8. Strategic Update In the first quarter of 2025, Adnoc L&S continued to accelerate its transformational growth strategy. In January, the Company completed an acquisition of an 80% stake in Navig8 for ~$1 billion (AED3.7 billion), adding a modern fleet of 32 tankers and expanding the Company's services portfolio. 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 (AED10.8billion) invested into eight new Liquified Natural Gas Carriers, nine Very Large Ethane Carriers, and four Very Large Ammonia Carriers. Additional growth is driven by the Integrated Logistics business segment through long-term contracts and improved utilisation for Jack-Up Barges (JUBs) in the UAE and the GCC region, including hire contracts for the deployment of 19 JUBs, and the acquisition and deployment of nine Offshore Support Vessels to support EPC projects. -TradeArabia News Service
