Adnoc L&S 1st quarter revenue up 41% YoY at Dhs4,339 million

Adnoc Logistics and Services (Adnoc L&S) announced on Monday financial results for the first quarter (Q1) ending March 31st, 2025.

Adnoc L&S revenue for Q1 was $1,181 million (Dhs4,339 million), a 41 per cent year-on-year increase.

Ebitda rose by 20 per cent to $344 million (Dhs1,262 million) in the same period, driven by robust performance across all business segments, sustaining the Ebitda margin at 29 per cent.

Net profit for Q1, 2025 was $185 million (Dhs678 million), down 5 per cent compared to Q1, 2024, mainly due to lower commercial shipping rates, but up 3 per cent compared to the previous quarter.

Despite evolving market conditions, Adnoc L&S’ strategic diversification and resilient business model supports delivery of strong net profit and operating cash flow. The company continues to unlock additional value and efficiencies from its extensive portfolio of assets, while leveraging progressive synergies from its shipping and logistics subsidiaries, Navig8 and Zakher Marine International (ZMI).

Captain 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 per cent 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.”

Revenues from the Integrated Logistics segment increased to $628 million (Dhs2,307 million), up 23 per cent 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 per cent to $182 million (Dhs669 million) compared to Q1 2024.

Revenues from the Shipping segment increased 87 per cent to $469 million (Dhs1,722 million), compared to Q1 2024, driven primarily by the consolidation of revenue from the Navig8 tanker fleet.

Shipping Ebitda increased 26 per cent to $143 million (Dhs527 million) compared to the same period last year, generating a robust Ebitda margin of 31 per cent.

Revenues from the Services segment increased 9 per cent to $84 million (Dhs310 million) compared to Q1 2024.

Ebitda from the services segment grew 52 per cent year-on-year to $18 million (Dhs66 million), mainly driven by higher Borouge Container Terminal volumes and shares of profit from Integr8.

Earlier Adnoc Logistics & Services announced shareholder approval of all agenda items at its Annual General Meeting, including a final dividend of $136.5 million (Dhs501.3 million), bringing the 2024 full-year dividend to $273 million (Dhs1,001 million), a 5 per cent increase year-on-year, in line with Adnoc L&S’ progressive dividend policy.

The final dividend, equivalent to 6.78 fils per share, will be paid to shareholders on record as of 3rd April 2025.

Dr. Sultan Al Jaber, Chairman of Adnoc L&S, said, “2024 was a transformative year for Adnoc L&S, marked by accelerated global expansion, record financial performance, and bold strategic moves.

“We continued to strengthen our fleet and completed a pivotal $1.0 billion (Dhs3.7 billion) acquisition of 80 per cent of Navig8, significantly enhancing our global reach and operational capabilities. Our strong performance in 2024 allowed us to deliver outstanding shareholder value, including a 5 per cent increase in our full-year dividend, while advancing sustainability, innovation, and industry leadership.”

He added that Adnoc L&S is positioned for continued growth, driven by organic expansion, strategic acquisitions, and cutting-edge technology investments.

“With a growing fleet of next-generation vessels and a steadfast commitment to efficiency and sustainability, we remain focused on delivering Adnoc’s energy to the world while contributing to the UAE’s economic ambitions. The momentum we have built sets the stage for an even more exciting future,” Dr. Al Jaber stated.

Adnoc L&S delivered exceptional financial growth, driven by strong market demand, strategic acquisitions, and operational efficiency.

Revenue increased 29 per cent year-on-year to over $3.5 billion (Dhs13 billion), while net profit rose 22 per cent to $756 million (Dhs2.7 billion).

Ebitda grew 31 per cent year-on-year, reflecting Adnoc L&S’ ability to scale operations while maintaining profitability.

Since its 2023 IPO, the company’s share price has increased by 178 per cent, significantly outperforming the ADX and strengthening investor trust in Adnoc L&S’ long-term strategy.