Adnoc Logistics and Services reported an 89 per cent increase in its fourth-quarter profit, boosted by higher demand in the company’s integrated logistics business.
Net profit for the three months that ended in December rose to $165 million, the company said on Wednesday, in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
Adnoc L&S’ revenue jumped 26 per cent year-on-year to $828 million in the latest reported quarter.
“Our strong balance sheet and cash position will enable us to unlock additional growth opportunities,” said Capt Abdulkareem Al Masabi, chief executive of Adnoc L&S.
“We remain confident in our medium-term guidance and the potential to further strengthen our position as a global energy maritime logistics leader,” he said.
The company’s board has recommended a cash dividend of $130 million, or 6.45 fils per share, for the second half of 2023, which will paid in the second quarter of this year depending on shareholder approval, Adnoc L&S said.
Adnoc’s maritime logistics arm aims to increase annual dividends by at least 5 per cent over the medium term, taking the 2023 annualised dividend of $260 million as a base, it said.
For the full year 2023, Adnoc L&S’ net profit rose nearly 140 per cent to $620 million, while revenue surged 41 per cent to $2.76 billion.
Revenue from the company’s integrated logistics segment increased 88 per cent to $1.74 billion last year, helped by continued growth in revenue and margins on core business lines as well as the acquisition of ZMI Holdings.
The company said it was aiming for “high teens” percentage growth in revenue for 2024 and “mid-to-high single-digit” percentage growth year-on-year in the medium term.
In terms of earnings before interest, taxes, depreciation, and amortisation, Adnoc L&S hopes to record average annual growth in the “low teens” over the medium term.
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 last year after parent company Adnoc raised about Dh2.83 billion from the sale of a 19 per cent stake in the subsidiary.
In 2023, Adnoc L&S unveiled its global Integrated Logistics Services Platform (ILSP), among the largest turnkey offshore logistics offerings in the world, the company said.
Adnoc L&S bought ZMI, an Abu Dhabi company that owns and operates offshore support vessels, in July 2022.
Before the acquisition, ZMI, which is currently operating as an independent entity under Adnoc L&S, was the world’s largest owner and operator of self-propelled jack-up barges, with operations in the UAE, Saudi Arabia, Qatar and China.
