Adnoc L&S records Dhs2.27b profit

Adnoc Logistics and Services , a global energy maritime logistics leader, on Thursday announced its Q4 and full year 2023 financial results.

On a full-year basis, Adnoc L&S delivered a net profit of $620 million (Dhs2.27 billion), or $0.08 (AED0.29) per share, representing a 138% year-on-year (Y-o-Y) increase over a net profit of $261 million (Dhs959 million) in 2022. The company generated revenues of $2,755 million (Dhs10,118 million) in 2023, marking a 41% increase over 2022.

EBITDA increased 93% Y-o-Y to $876 million (Dhs3,217 million) as all business segments continued to perform strongly. This was driven by a 9 percentage point EBITDA margin expansion to 32% in 2023 against the same period last year, resulting mainly from the growth in the Integrated Logistics segment in addition to continued strong performance in the Shipping and Marine Services segments.

On a quarterly basis, fourth-quarter net profit grew by 89% Y-o-Y to $165 million (Dhs606 million) while revenue increased by 26% Y-o-Y to $828 million (Dhs3,041 million) mainly driven by continued momentum in the Integrated Logistics segment. Q4 EBITDA increased by 43% Y-o-Y to $242 million (Dhs889 million).

Commenting on the Company’s results, Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “In 2023, our first year as a publicly listed entity, AdnocC L&S achieved significant milestones, including a 91% increase in share price, nearly doubling EBITDA, and a 138% rise in net profit. Our strong balance sheet and cash position will enable us to unlock additional growth opportunities, reinforcing our commitment to delivering attractive shareholder returns. We remain confident in our medium-term guidance and the potential to further strengthen our position as a global energy maritime logistics leader.”

Revenues from the Integrated Logistics segment increased 88% Y-o-Y to $1,739 million (Dhs6,386 million). This exceptional performance is attributable to continued growth in revenues and margins on core business lines, the successful acquisition of ZMI Holdings and new business activities such as Engineering, Procurement and Construction.