Giant UAE owner Adnoc Logistics & Services (Adnoc L&S) has logged a much bigger third-quarter profit after expanding in offshore shipping.
The Abu Dhabi-listed group said net earnings were $148m, up from $101m a year ago.
Revenue grew to $702m from $539m in 2022.
The result showed “strong growth in top line and profitability as the company successfully implements its transformational growth strategy”, Adnoc L&S said.
“This is driven largely by the continued realisation of value from the Zakher Marine International Holdings’ acquisition in the fourth quarter of 2022,” the company added.
There were also healthy rates for tankers and gas carriers.
UAE owner Zakher was bought last year, adding another 60 offshore support vessels and jack-up construction lift boats to the Adnoc L&S offshore portfolio, which comprised around 20 OSVs at that time.
The fleet also includes bulkers and container ships.
VesselsValue assesses the total ship value at $3.75bn.
LNG and LPG carriers produced revenue of $38m, stable from the second quarter.
Ebitda was $22m, slightly lower than the $24m achieved in the previous three months.
Tanker earnings dip
The tanker division logged Ebitda of $33m, 24% down from the April to May period.
Revenue increased 3% to $101m, however, driven by earnings from VLCC newbuildings delivered into the fleet.
Adnoc L&S noted a “moderation” of tanker rates in the third quarter, primarily driven by seasonality, Opec+ cuts and lower Russian oil product exports, as well as an increase in direct costs.
Looking ahead, the group expects to continue to benefit from the increase in fleet size.
Product tanker rates are forecast to show continued strength, but the shipowner anticipates a softening in VLCC rates.
“We anticipate 2024 performance slightly behind the stronger-than-anticipated performance in 2023 driven by rate declines on VLCCs,” Adnoc L&S said.
The group is paying a cash dividend of $65m.
