Adnoc L&S third-quarter profit jumps on higher revenue

Maritime and logistics company reports about $148 million in profit for the three-month period

Adnoc Logistics & Services' third-quarter revenue grew 30 per cent annually to $702 million. Photo: Adnoc L&S

Adnoc Logistics and Services, an Adnoc subsidiary, reported a 46 per cent annual increase in its third-quarter profit, as revenue rose on the expansion of its logistics services activities.

Net profit for the period rose to $148 million, the company said on Monday, in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

Total comprehensive income for the three months to the end of September, including a re-measurement gain on employee benefits, rose to $149.91 million, it said.

Revenue during the period grew 30 per cent annually to $702 million.

“Our continued profitable growth coupled with strong positive cash delivery positions us to continue financing our transformational investment programme while rewarding our shareholders for their support and trust in Adnoc L&S,” said Capt Abdulkareem Al Masabi, chief executive of 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.”

Adnoc L&S delivers energy products to more than 100 customers in about 50 countries through its three business units including integrated logistics, shipping and marine services.

The company debuted on the Abu Dhabi bourse in June after its parent company Adnoc raised about Dh2.83 billion ($769 million) from the sale of a 19 per cent stake in its maritime logistics unit.

Adnoc L&S's net profit in the first nine months of the year grew about 162 per cent annually to $455 million, as revenue rose 49 per cent to $1.9 billion.

The integrated logistics segment reported revenue of $1.18 billion in the first nine months of this year, up 108 per cent on the same period last year, while shipping segment revenue rose 1 per cent annually to $608 million. Revenue from the marine services segment grew 9 per cent to $134 million.

During the third quarter the company took delivery of eight self-propelled jack-up barges – six owned and two chartered – increasing the fleet by 25 per cent to 39. It also took delivery of two newly built LNG dual-fuel Very Large Crude Carriers, increasing the total delivered so far this year to three.

Adnoc L&S reaffirmed its medium-term targets including mid-to-high single-digit growth in group revenue year-on-year in the medium term and a group earnings before interest, taxes, depreciation and amortisation (ebitda) margin of above 30 per cent in 2023.

Last month, the company's board approved the distribution of an interim cash dividend of $65 million for the second quarter, equivalent to 3.2 fils per share.