ABU DHABI, UAE: ADNOC Logistics and Services plc (ADNOC L&S), a global energy maritime logistics announced its Q1 2024 financial results. For the first quarter of 2024, ADNOC L&S delivered a net profit of $194 million (AED712 million), or $0.03 (AED 0.10) per share, representing a 34% increase over a net profit of $145 million (AED 533 million) in Q1 2023.
ADNOC Logistics and Services plc generated revenues of $840 million (AED 3,085 million) in Q1 2024, marking a 42% increase over Q1 2023. EBITDA increased 44% to $286 million (AED1,050 million) over the same comparable quarters as all business segments continued to perform strongly. Following these strong Q1 results and continuing growth in activities across all business segments, the Company has revised its guidance upwards.
This strong financial performance has been powered by ADNOC L&S’ ambitious transformational growth strategy whereby the Company intends to invest in excess of $5 billion (AED18.4 billion) in value-accretive growth in energy-related maritime logistics over the medium term, to meet growing demand in and beyond the UAE.
Commenting on the Company’s results, Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “ADNOC L&S has started 2024 by delivering another set of strong financial results, building on our record-breaking public listing and the robust growth we achieved in 2023.
Continuing substantial increases in net profit and revenue clearly demonstrate that our transformational growth strategy is working. We are continuing to expand our market-leading fleet while growing our geographic reach, service offerings, and global customer base to unlock increased value for our shareholders. Moving forward, the Company remains steadfast in its commitment to deploying more than $5 billion in value-accretive growth investment over the medium term and leveraging AI technologies to support our operational efficiency, safety, and sustainability goals.”
In line with its approved dividend policy, the Shareholders approved at the Annual General Assembly Meeting a cash dividend distribution of $130 million (AED477 million), equivalent to 6.45 fils per share, for the second half of 2023. The total dividend for Q2 and H2 2023 is $195 million (AED716 million), equivalent to 9.68 fils per share.
The $65 million (AED239 million) dividend for Q2 2023 was paid in November 2023. Payment of the dividend for H2 2023 is expected to be paid in May 2024.
In line with the Board-approved progressive dividend policy, the Company aims to increase annual dividends by at least 5% over the medium term, taking the 2023 annualized dividend ($260 million, AED955 million) as a base.
ADNOC Logistics and Services plc revised its 2024 guidance upwards:
- Group Revenues: We expect revenue growth upwards to low 30% range in 2024 (previously high teens percentage). Over the medium term, we expect high single-digit percentage growth year-on-year (previously mid-to-high single-digit percentage growth).
- Group EBITDA: We anticipate EBITDA growth guidance for 2024 in the low 30%s range. Over the medium term, we target average annual EBITDA growth in the mid-teens percentage wise (previously low teens).
- Group Net Income: We expect net income growth in the low 20%s range in 2024. Over the medium term, we target average annual net income growth in the low percentage teens.
- Capital Structure: We target a 2.0-2.5x net debt / EBITDA ratio over the medium term, with debt and free cash flows after dividends as the primary funding sources for growth investments.
