By:Ognnews

Adnoc Logistics and Services (Adnoc L&S), a global energy maritime logistics company, reported a 41% year-on-year increase in Q1 revenue to $1,181 million, while EBITDA rose by 20% to $344 million.

The company's net profit for Q1 2025 was $185 million, down 5% from Q1 2024 due to lower commercial shipping rates, but up 3% from the previous quarter.

Despite market conditions, Adnoc L&S's strategic diversification and resilient business model ensure strong net profit and operating cash flow.

The company is unlocking additional value and efficiencies from its extensive portfolio of assets and leveraging synergies from its shipping and logistics subsidiaries, Navig8 and Zakher Marine International.

Abdulkareem Al Masabi, CEO of Adnoc L&S, said: “Adnoc L&S continues to deliver robust financial results and significant business growth. Our recent acquisition of 80% of Navig8, and the integration of their capabilities into our expansive services portfolio, further strengthens our customer offerings and international footprint, unlocking new shareholder value. Moving forward, we will continue to deliver on our transformational growth strategy while leveraging cutting-edge technologies and AI solutions to further enhance operational efficiencies."

SEGMENTAL FINANCIAL PERFORMANCE FOR Q1 2025

Revenues from the Shipping segment increased 87% to $469 million (AED1,722 million), compared to Q1 2024, driven primarily by the consolidation of revenue from the Navig8 tanker fleet. Shipping EBITDA increased 26% to $143 million (AED527 million) compared to the same period last year, generating a robust EBITDA margin of 31%.

Revenues from the Services segment increased 9% to $84 million (AED310 million) compared to Q1 2024. EBITDA from the Services segment grew 52% year-on-year to $18 million (AED66 million), mainly driven by higher Borouge Container Terminal volumes and shares of profit from Integr8.

Strategic Update

In the first quarter of 2025, Adnoc L&S continued to accelerate its transformational growth strategy. In January, the Company completed an acquisition of an 80% stake in Navig8 for ~$1 billion (AED3.7 billion), adding a modern fleet of 32 tankers and expanding the Company’s services portfolio.

Adnoc L&S continues to secure its future earnings. The Company has added 340 years of newly contracted revenues against its recent order of energy-efficient vessels, including $2.95 billion (AED10.8billion) invested into eight new Liquified Natural Gas Carriers, nine Very Large Ethane Carriers, and four Very Large Ammonia Carriers.

Additional growth is driven by the Integrated Logistics business segment through long-term contracts and improved utilisation for Jack-Up Barges (JUBs) in the UAE and the GCC region, including hire contracts for the deployment of 19 JUBs, and the acquisition and deployment of nine Offshore Support Vessels to support EPC projects. -TradeArabia News Service