Adnoc Logistics and Services has reported a first-quarter net profit of $194 million, representing a 34 per cent increase over the same period in 2023. The company also generated revenues of $840 million in Q1 2024, marking a significant 42 per cent increase over Q1 2023. Earnings before interest, taxes, depreciation, and amortization (Ebitda) increased by 44 per cent to $286 million, showing strong performance across all business segments.
With these impressive Q1 results, Adnoc L&S has revised its guidance upwards, showcasing continued growth in activities in all business segments. The strong financial performance is a result of the company’s ambitious transformational growth strategy, which includes investing over $5 billion in energy-related maritime logistics to meet growing demand in and beyond the UAE.
The increase in revenues was driven by the integrated logistics segment, which saw a 55 per cent growth to $546 million in Q1 2024 compared to Q1 2023. Additionally, Ebitda in this segment increased by 59 per cent to $160 million. The Shipping segment also experienced growth, with revenues increasing by 25 per cent to $251 million, driven by strong charter rates and additional earnings from new very large crude carriers.
In the Marine Services segment, revenues grew by 7 per cent to $43 million, while Ebitda increased by 28 per cent to $10 million. Adnoc L&S continues to focus on its transformational growth strategy, leveraging AI technologies to improve operational efficiencies and safety. The company is also committed to sustainability, aligning with net-zero targets set by various entities.
In line with its dividend policy, Adnoc L&S approved a cash dividend distribution of $130 million for the second half of 2023. The total dividend for Q2 and H2 2023 amounts to $195 million, with the dividend for H2 2023 expected to be paid in May 2024. The company aims to increase annual dividends by at least 5 per cent over the medium term, building on its strong financial performance and growth initiatives.
Overall, Adnoc Logistics and Services’ strong Q1 results, growth in all business segments, and commitment to investment and sustainability indicate a positive outlook for the company. As it continues to execute its transformational growth strategy and leverage technology and innovation, Adnoc L&S is well-positioned to meet the increasing demands of the energy-related maritime logistics industry and drive further success in the future.
