ADNOC Logistics & Services (ADNOCLS) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue rose 42% year-over-year to $1.74 billion, with net profit up 31% to $401 million and EBITDA up 42% to $591 million, maintaining a 34% margin.

• Earnings per share for H1 2024 increased to $0.05, up 31% year-over-year.

• Growth driven by transformational strategy, including the acquisition of 80% of Navig8 for $1.04 billion, with the remaining 20% to be acquired in 2027, expected to be over 20% EPS accretive in the first full year.

• Over $5 billion in strategic investments targeted by 2028, supporting global expansion and service diversification.

• Guidance for 2024 revised upward: revenue growth now expected in the low to mid-30% range year-over-year, with EBITDA growth in the low 30% range.

Financial highlights

• H1 2024 revenue: $1.74 billion (+42% YoY); EBITDA: $591 million (+42% YoY, 34% margin); Net profit: $401 million (+31% YoY).

• EPS for H1 2024: $0.05 (+31% YoY); free cash flow: $308 million (+263% YoY).

• Gross profit for H1 2024: $498.6 million, up from $358.3 million year-over-year.

• Cash and cash equivalents at period end were $340.9 million, up from $215.7 million at year-end 2023.

• Capital expenditures for H1 2024: $225 million (+3% YoY).

Outlook and guidance

• 2024 revenue growth guidance raised to low to mid-30% YoY; EBITDA growth maintained at low 30% YoY.

• Integrated Logistics: mid-40% YoY revenue growth in 2024, mid to high single-digit growth medium term.

• Shipping: low to mid-teens YoY revenue growth in 2024; Gas Carriers to see mid-20% growth 2025-27 with new LNG vessels.

• Marine Services: mid single-digit YoY revenue growth in 2024, stable medium-term outlook.

• AW Shipping JV awarded shipbuilding contracts worth $1.9 billion for new ethane and ammonia carriers.