ADNOC Logistics & Services (ADNOCLS) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 grew 38% year-over-year to $2.67 billion, with EBITDA up 37% to $867 million and net profit up 27% to $576 million, reflecting robust growth across all business segments and a transformational strategy.

• Q3 2024 revenue increased 32% year-over-year to $928 million, EBITDA up 26% to $275 million, and net profit up 18% to $175 million.

• Integrated Logistics, Shipping, and Services segments all contributed to growth, supported by fleet expansion, higher utilization, and robust market demand.

• Interim 2024 dividend declared at $136.5 million, with a progressive policy and total 2024 dividend projected at $273 million.

• Acquisition of 80% of Navig8 for $1.04 billion is expected to be over 20% EPS accretive in the first full year, expanding global reach and service offerings, with closing expected by 31 March 2025.

Financial highlights

• 9M 2024 revenue: $2.67 billion (+38% YoY); EBITDA: $867 million (+37% YoY, margin 32%); net profit: $576 million (+27% YoY); EPS up 27%.

• Q3 2024 revenue: $928 million (+32% YoY); EBITDA: $275 million (+26% YoY); net profit: $175 million (+18% YoY).

• Free cash flow for 9M 2024 was $347 million, up 148% year-over-year.

• Net debt at $213 million as of 30 September 2024, with net debt/EBITDA at 0.18x, reflecting strong balance sheet and debt capacity.

• Capital expenditures for 9M 2024 totaled $361 million.

Outlook and guidance

• 2024 group revenue expected to grow low to mid-30% year-over-year, with EBITDA up low 30%.

• Medium-term guidance targets high single-digit revenue and mid-teen EBITDA growth, with over $3 billion additional investments by 2029.

• Dividend per share targeted to grow at least 5% annually, with a projected 2024 total dividend of $273 million.

• Segment outlook: Integrated Logistics and Shipping to see continued growth, with strong contracted revenue base and robust tanker/dry-bulk rates.

• 2024 net income growth in the low 20% range; medium-term net income growth in low teens percentage.