Adnoc Logistics & Services is promising a hefty payout to shareholders after reporting a $620m annual net profit — 138% higher than in the preceding year.
During 2023, its first year as a publicly listed entity, the company generated revenues of $2.75bn, a 41% increase over 2022, while Ebitda increased 93% year on year to $876m.
Chief executive Captain Abdulkareem Al Masabi also noted that the Abu Dhabi-listed company achieved a 91% share price increase.
“Our strong balance sheet and cash position will enable us to unlock additional growth opportunities, reinforcing our commitment to delivering attractive shareholder returns,” he said.
“We remain confident in our medium-term guidance and the potential to further strengthen our position as a global energy maritime logistics leader.”
The company announced on Thursday that the board has recommended paying out $130m in dividends for the second half.
Together with the $65m dividend for the second quarter, this gives shareholders a total payout of $195m for the year.
Adnoc L&S attributed its strong performance mainly to growth in its integrated logistics segment, in addition to continued strong contributions by shipping and marine services.
Revenues from the integrated logistics segment increased 88% year on year to $1.73bn.
“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 …” the company said.
Revenue earned by its tankers and gas carriers softened by 3% year on year to $839m.
However, it noted that strong charter rates contributed to a 16% increase in Ebitda to $321m.
On the offshore front, revenues from the marine services segment grew 6% year on year to $177m, generating Ebitda of $40m — a 47% increase driven by higher volumes in petroleum ports operations.
During the fourth quarter, Adnoc L&S took delivery of a fourth LNG carrier newbuilding and an LNG dual-fuel VLCC. In total, it took delivery of four VLCCs in 2023.
Eight self-elevating, self-propelled jack-up barges, six of which are owned and two chartered in, were added, giving it a total of 39 of the type.
TradeWinds reported in January that Adnoc L&S had approached yards asking them to submit offers to build four very large ammonia carriers and up to 10 LNG carriers, enquiries that could be worth up to $3bn.
