Adnoc L&S takes delivery of eight jack-up barges amid offshore expansion

One of the vessels will serve Iraq, marking the logistics company’s entry into a new market

Adnoc L&S, which provides logistics and maritime solutions, now owns 39 jack-up barges. Photo: Adnoc

Adnoc Logistics and Services has taken delivery of eight self-propelled jack-up barges through its subsidiary Zakher Marine International Holdings as the company expands it offshore services.

The company received two new-build and four used jack-up barges, along with two chartered rigs, Adnoc L&S said in a filing to the Abu Dhabi Securities Exchanges, where its shares are traded.

One of the barges will serve Iraq, marking the company’s entry into a new market and supporting its regional expansion, it said.

Adnoc L&S, which provides logistics and maritime solutions, now owns 39 jack-up barges and said the expansion of its fleet comes at a time when charter rates for jack-up barges are “robust” due to high demand for offshore services.

“The addition of these self-propelled jack-up barges to our growing integrated logistics and shipping fleet aligns with our ambitious smart growth strategy, enabling us to provide a broader range of services to our customers,” said Adnoc L&S chief executive Capt Abdulkareem Al Masabi.

“Adnoc L&S is committed to exploring new opportunities for expansion to continue driving value for our shareholders and strengthen our position as the region’s largest integrated logistics provider.”

Adnoc L&S bought ZMI, an Abu Dhabi company that owns and operates offshore support vessels, in July last year.

Before the acquisition, ZMI, which is currently operating as an independent entity under Adnoc L&S, was the world’s largest owner and operator of self-propelled jack-up barges, with operations in the UAE, Saudi Arabia, Qatar and China.

“Our extensive fleet of jack-up barges and offshore support vessels enables us to offer best-in-class maritime logistics services to the offshore production and wind sectors,” said ZMI Holdings chief executive Ali El Ali.

“We are strategically positioned to further expand our operations across Asia and explore new markets.”

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 owns a majority stake of 81 per cent in the company.

Adnoc L&S reported a more than twofold 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. Revenue during the period surged 43 per cent to $632 million.

The company has been rapidly expanding its operations.

In April, Adnoc L&S added five new-build very large gas carriers to its fleet to meet the growing global demand for gas.

In March, the company unveiled its global Integrated Logistics Services Platform and signed a $2.6 billion contract with Adnoc Offshore to provide logistics services.

The ILSP is among the largest turnkey offshore offerings in the world that will enable Adnoc L&S to co-ordinate end-to-end management of logistics and maritime operations from its Mussaffah base in Abu Dhabi.