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, driven by transformational growth strategy and strong segment performance.

• 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 additional investments of $3bn+ anticipated by 2029.

• Acquisition of 80% of Navig8 for $1.04bn expected to be >20% EPS accretive in the first full year, expanding global reach and service offerings.

• Earnings per share for the nine-month period was $0.08, compared to $0.06 in the prior year.

Financial highlights

• Q3 2024 revenue rose 32% year-over-year to $928 million; EBITDA margin at 30% and net profit at $175 million.

• 9M 2024 EBITDA reached $867 million (32% margin), net profit $576 million, and free cash flow $347 million.

• Total assets grew to $6,650 million as of 30 September 2024, up from $5,746 million at year-end 2023.

• Net debt increased to $213 million, with a low net debt/EBITDA ratio of 0.18x, reflecting capacity for further growth financing.

• Net cash generated from operating activities was $769 million for the nine months, up from $647 million year-over-year.

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 >$3bn additional investments by 2029.

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

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

• Maintains 2024 and medium-term profit & loss outlook, excluding Navig8 contribution.