ADNOC Classification: Public
ADNOC L&S Reports 162% Year-on-Year Increase in Net
Profit for the First Nine Months of 2023
Company delivers an outstanding performance for the first nine
months of 2023, with year-on-year revenue growth of 49% and
EBITDA increase of 124%
Strong growth and profitability underpinned by expansion of
Integrated Logistics services activities, Zakher Marine International
Holdings’ acquisition and robust charter rates for Tankers and Gas
Carriers
ADNOC L&S continues to deliver on its smart growth strategy and
expand its environmentally efficient fleet with dual-fuel engines
Company reaffirms its commitment to deliver attractive shareholder
returns with an interim dividend payment of $65 million for Q2 2023
Abu Dhabi, UAE – November 13, 2023: ADNOC Logistics and Services plc (ADNOC L&S)
(ADX symbol ADNOCLS / ISIN AEE01268A239), a global energy maritime logistics leader,
today announced exceptional financial results for the first nine months of 2023.
In the first nine months of 2023, ADNOC L&S delivered a net profit of $455 million, or $0.06
per share. This represents a 162% year-on-year (y-o-y) increase over the net profit of $173
million for the first nine months of 2022.
The Company generated revenues of $1,927 million in the first nine months of 2023, marking
an increase of 49% over the same period in 2022. The Company reported an EBITDA of $635
million in the first nine months of 2023, representing a 124% y-o-y increase due to a strong
performance from all business segments. This was driven in part by an EBITDA marginADNOC Classification: Public
expansion of 11 percentage points to 33% in the first nine months of 2023 over the same
period of last year, resulting from strength in the Shipping and Jack-Up Barges (JUB) markets,
and targeted improvements in operating costs and efficiencies.
Third quarter revenue increased by 30% y-o-y to $702 million mainly driven by strong growth
in the Integrated Logistics segment. EBITDA increased by 57% y-o-y to $218 million in the
third quarter. Net profit for the third quarter grew by 46% y-o-y to $148 million.
Commenting on the Company’s results, Captain Abdulkareem Al Masabi, CEO of ADNOC
L&S, said: “We are pleased to report another set of outstanding results driven by substantiated
progress towards our smart growth strategy. Our continued profitable growth coupled with
strong positive cash delivery positions us to continue financing our transformational investment
program whilst rewarding our shareholders for their support and trust in ADNOC L&S. Looking
ahead, we continue to actively seek smart well-timed growth opportunities that are in-line with
our sustainability priorities to cement our position as a global energy maritime logistics leader.”
Segmental Financial Performance in 9M 202 3
The Integrated Logistics segment reported revenues of $1,185 million, an increase of 108%
y-o-y. This performance follows the successful acquisition of Zakher Marine International
Holdings (ZMI) and an expanded Integrated Logistics service offering. Integrated Logistics
reported EBITDA of $371 million, an increase of 320% y-o-y. The EBITDA margin increased
to 31% (9M 2022: 16%).
The Shipping segment reported revenues of $608 million, a slight increase of 1% y-o-y.
Shipping EBITDA increased 30% y-o-y to $239 million while EBITDA margin expanded to 39%
(9M 2022: 30%) supported by healthy charter rates for Tankers and Gas Carriers.
Revenues from the Marine Services segment grew 9% y-o-y to $134 million. This generated
an EBITDA of $27 million, an increase of 8% y-o-y.
ADNOC L&S is progressing positively in executing its smart growth strategy. During Q3 2023,
the Company took delivery of eight self-propelled JUBs, six owned and two chartered-in. With
this expansion, the fleet of JUBs owned and/or operated by ADNOC L&S has increased by
25% from 31 to 39, reinforcing the Company’s status as the owner/operator of the world’s
largest fleet of self-elevating, self-propelled JUBs. During the quarter, the Company tookADNOC Classification: Public
delivery of two additional newbuild LNG dual-fuel Very Large Crude Carriers (VLCCs), increasing
the total delivered year-to-date to three. Their dual-fuel capability allows them to run on the
transitional fuel LNG, as the Company works towards meeting ADNOC Group’s 2045 net zero
target. The fourth vessel is set to join the ADNOC L&S fleet later this year.
Following its successful IPO in June 2023, the Board of Directors last month approved the
distribution of an interim cash dividend of $65 million for Q2 2023, equivalent to 3.2 fils per
share, reaffirming the Company’s commitment to deliver attractive returns to its
shareholders.
Financial Summary
USD Million Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 2023 9M 2022 YoY %
Revenue 702 632 11% 539 30% 1927 1295 49%
EBITDA (1) 218 219 0% 139 57% 635 284 124%
Net Profit 148 162 -9% 101 46% 455 173 162%
Net cash from
Operating Activities 345 85 305% 49 608% 647 107 506%
(1) EBITDA is defined as profit before income tax, finance costs, finance income, depreciation and amortisation
Outlook
The Company reiterates medium-term targets which are as follows:
• Group Revenues: We target mid-to-high single-digit growth year-on-year in the medium
term.
• Group EBITDA: We target an EBITDA margin of above 30% in 2023. Over the medium
term, we target average annual EBITDA growth in the low teens towards an EBITDA
margin of 35%.
• Capital Structure: We target 2.0-2.5x net debt / EBITDA over the medium term.
# # #ADNOC Classification: Public
About ADNOC Logistics & Services
ADNOC Logistics & Services, listed on the Abu Dhabi Securities Exchange (ADX symbol
ADNOCLS / ISIN “AEE01268A239”) is a global energy maritime logistics company based in
Abu Dhabi. Through its three business units; integrated logistics, shipping and marine
services, ADNOC L&S delivers energy products to more than 100 customers in over 50
countries.
To find out more, visit: www.adnocls.ae
For media enquiries, please contact media@adnocls.ae
For investors enquiries, please contact: IR@adnocls.ae

Sentiment: positive