Abu Dhabi-listed shipowner Adnoc Logistics and Services has posted a rise in third-quarter profit as it works to finalise its $1.5bn takeover of tanker owner and pools player Navig8.
The group said net earnings to 30 September were $175m, against $148m a year ago, with revenue rising to $928m from $702m.
“This strong financial performance is a result of the continuous execution of Adnoc L&S’ transformative growth strategy, focused on value-accretive investments in energy-related maritime logistics,” the company said.
“Just 18 months after its record-setting IPO, Adnoc L&S has already delivered commitments to the majority of its strategic investment goals, backed by over 340 years of incremental long-term contracted demand,” it added.
Chief executive Abdulkareem Al Masabi said: “These robust financial results demonstrate continued delivery of our strategy and our focus on delivering strong shareholder value through growth.”
“The expected contribution of Navig8 will further boost our profile as a global energy maritime logistics company, while our strong balance sheet provides for further organic and inorganic value-accretive growth opportunities,” he added.
The group agreed to buy Navig8’s tanker and pools business in June.
The deal will accelerate the company’s growth strategy, Adnoc L&S said on Thursday.
The transaction is projected to boost earnings per share by at least 20% in the first full year.
Regulatory approvals required to complete the deal are in process, with anticipated completion remaining on 31 March 2025 at the latest, the shipowner added.
Shipping revenue rises
Revenue from shipping was driven by strong charter rates for tankers and dry bulk vessels, coupled with additional revenue from the four new VLCCs acquired in 2023, the company said.
This was slightly offset by a reduction in profit from gas carriers due to the ending of spot charter-in operations, as well as technical off-hire days.
Shipping Ebitda was up 32% over the first nine months to $316m.
During the year, the company also strengthened its asset base with newbuilding contracts for additional energy-efficient vessels.
Adnoc L&S awarded contracts of up to $2.5bn for as many as 10 LNG carriers.
Through AW Shipping, its joint venture with Wanhua Chemical Group, it spent $1.4bn on nine new very large ethane carriers and $500m on four very large ammonia carriers.
