Adnoc Logistics and Services (Adnoc L&S) has a large parent in state energy company Abu Dhabi National Oil Co (Adnoc).
But Adnoc L&S chief executive Captain Abdulkareem Al Masabi believes the market view that his company only exists to buy capacity for shipping Adnoc volumes is "misleading".
“We are a pure commercially-driven shipping company,” he said. “The volumes from the parent company do support us, but it is not the one that determines which one [ship] we buy. We have to look at the overall global market and see where we can grow.”
International players
Al Masabi stressed the company is a long-term player and will compete in the international market for requirements on term tonnage.
He said the strategy of Adnoc L&S is to own one-third of its tonnage, have another third on short-term charter and the remaining portion on long-term hire to balance the cyclical nature of the business.
He acknowledged the company will also grow with its parent and highlighted the formation of the Adnoc Global Trading and Adnoc Trading brands last year.
“This will give us the opportunity and leverage to best utilise our fleet because it will be in trading mode rather than just molecules going out to the customer,” he said.
Adnoc refinery and sulphur production volumes are also increasing, offering the potential for Adnoc L&S to ship more volumes and further expand its fleet.
Transformation
Al Masabi said Adnoc L&S has been on what he described as “a major transformation journey” to synergise together the culture from all of its different foundation companies.
He said it is now the largest integrated shipping and logistics outfit for the energy sector in the Middle East Gulf states region, adding that he believes its uniqueness lies in its ability to offer end-to-end solutions.
The company plans to produce its first environmental, social and governance (ESG) report this year.
“We need to set a target and we need to stick to these targets,” Al Masabi said.
He believes this, and driving the technology side of the business, will differentiate the company from its competitors.
Agenda
Al Masabi is also keen to take leadership on industry research and development, particularly on future fuels.
“We should not wait for new regulations,” he said. “We should be contributing to how we shape this in the future.”
On the agenda this year, aside from further growth in shipping, is a new move in offshore logistics into lift boats, including jack-up, maintenance and accommodation barges.
Al Masabi also has regional and international ambitions.
But he said the safety, skills and motivation of Adnoc L&S’ people, onshore and offshore, must be at the heart of what the company does.
