ADNOC Logistics & Services (ADNOCLS) Q4 2024 earnings summary

Executive summary

• Achieved strong profitable growth in FY 2024, with revenue up 29% YoY to $3.55 billion, EBITDA up 31% to $1.15 billion, and net profit up 22% to $756 million.

• Delivered strong shareholder returns, with an expected annual dividend of $273 million, up 5% YoY, and declared an interim dividend of $136.5 million.

• Closed the acquisition of an 80% stake in Navig8 for ~$1 billion, adding 32 tankers to the fleet and expanding service offerings.

• Continued expansion in Integrated Logistics, adding 20 offshore assets and securing long-term contracts, underpinning earnings visibility.

• Committed over $4 billion in value-accretive investments during 2024, adding 340 years of incremental contracted income.

Financial highlights

• Revenue: $3,549 million (+29% YoY); EBITDA: $1,149 million (+31% YoY, margin 32.4%); Net profit: $756 million (+22% YoY); EPS at $0.10.

• Free cash flow: $185 million (+313% YoY) despite significant CAPEX of $1,384 million (+31% YoY).

• Net debt to EBITDA increased to 0.47x from 0.08x, reflecting growth strategy.

• Q4 revenue increased 6% YoY to $881 million; Q4 EBITDA up 17% to $282 million; Q4 net profit grew 9% YoY to $180 million.

Outlook and guidance

• 2025 revenue guidance: mid to high 40% YoY growth; medium-term: low single-digit reduction for Integrated Logistics.

• Shipping segment expects mid to high 40% YoY growth in 2025, with high single-digit growth medium-term.

• Group consolidated revenue projected for mid to high 40% YoY growth in 2025, with high teens EBITDA growth and low double-digit net profit growth.

• Targeted annual dividend per share to grow by 5% from 2024's $273 million, with a projected 2025 dividend of $287 million.

• Plans over $3 billion in additional organic investments by 2029.