Adnoc L&S’s second-quarter profit more than doubles on higher revenue

Company's three-month profit to the end of June surges to $162 million

A Very Large Crude Carrier owned by Adnoc L&S. Photo: Adnoc

Adnoc Logistics & Services, an Adnoc subsidiary, reported a more than two-fold jump in its second-quarter profit on the back of higher revenue.

Net profit for the three months to the end of June climbed to $162 million, the company said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue during the period surged 43 per cent to $632 million.

The company’s first-half profit rose more than four-fold to $307 million as revenue during the period grew 62 per cent to $1.2 billion, on the back of growth across the company’s three business segments, including Integrated Logistics, Shipping and Marine Services.

“This impressive performance is driven by our responsible plans to expand our asset and customer base, decarbonise our operations and enter new verticals in a timely manner, while strategically positioning Adnoc L&S to capitalise on Adnoc’s ambitious growth strategy,” said Capt Abdulkareem Al Masabi, chief executive of Adnoc L&S.

“As part of our smart growth strategy, we remain focused on extending our geographical footprint, exploring new revenue streams, and unlocking further value for our shareholders.”

Adnoc L&S made its debut on the Abu Dhabi bourse in June this year.

Parent company Adnoc raised about Dh2.83 billion ($769 million) from the sale of a 19 per cent stake in its maritime logistics unit. The initial public offering was 163 times oversubscribed and drew more than $125 billion in bids.

Adnoc will continue to own a majority stake of 81 per cent in the company.

This is the second Adnoc unit to go public this year and the sixth to date. Adnoc L&S is the second-biggest listing in the Middle East this year after the IPO of Adnoc Gas in March.

“As part of our smart growth strategy, we remain focused on extending our geographical footprint, exploring new revenue streams, and unlocking further value for our shareholders,” Capt Al Masabi said.

In the second quarter, the company secured a $975 million Engineering, Procurement and Construction contract from Adnoc Offshore for the construction of an offshore artificial island.

In addition, it also took the delivery of two of the four new build, liquefied natural gas dual-fuel Very Large Crude Carriers scheduled to be delivered this year as part of its strategic fleet expansion, it said on Thursday.

Adnoc L&S has committed nearly $2 billion to building more environmentally efficient vessels and has successfully reduced the carbon intensity of its owned fleet by more than 20 per cent between 2018 and 2022.

The company is aiming for mid-to-high single-digit consolidated revenue growth year-on-year in the medium term, according to the company.

Adnoc L&S plans to pay a dividend in the fourth quarter of 2023 for the first half of 2023, with the specific dividend amount to be determined by the board.

At the time of listing, the company indicated a first-half dividend of $65 million, which equates to Dh0.032 per share.

A final dividend is expected to be paid in the second quarter of 2024 for the second half of 2023. At the time of listing, the company indicated a second-half dividend of $130 million.