ADNOC L&S-

Abu Dhabi National Oil Company Logistics and Services (Adnoc L&S) recorded a 9% y-o-y increase in its net income to AED 660 (USD 180 mn) in 4Q 2024, while its revenue bolstered 6% y-o-y to AED 3.24 bn (USD 881 mn) during the same period, according to the firm’s earnings release (pdf).

ICYMI- Adnoc L&S saw its bottom line grow 18% y-o-y to USD 175 mn in 3Q 2024, while revenues grew 32% y-o-y to USD 928 mn. On a 9M basis, net income increased 27% y-o-y to USD 576 mn, while revenues grew 38% to USD 2.7 bn.

On a yearly basis, Adnoc L&S saw its bottom line surge 22% y-o-y to AED 2.78 bn (c. USD 756 mn) in FY 2024. The firm’s topline grew 29% y-o-y to AED 13 bn (c. USD 3.55 bn), driven by strong performance across all business segments.

Segment by segment breakdown: The firm’s shipping segment saw its top line boosted by 14% y-o-y to AED 3.51 bn (USD 956 mn) due to high charter rates for dry bulk and tankers in 1H 2024, higher contractual rates for its LNG vessel, and the addition of four new VLCC tankers acquired in 2023. For the company’s integrated Logistics segment, revenues recorded a 40% y-o-y leap to AED 8. 38 bn (USD 2.28 bn) in 2024, partially driven by the growth of its integrated logistics services platform and third-party offshore logistics services, as well as expansion in GCC. Lastly, the company’s services department saw its revenues go up by 10% y-o-y to AED1.15 bn (c. USD 312 mn) pushed up by a surge in the petroleum volumes it handled in ports and onshore terminal operations.

Looking forward: The first full financial year following the acquisition of Navig8 is expected to see a minimum 20% boost to Adnoc L&S’ earnings per share in 2025, according to the company’s earnings release. The acquisition is also expected to save Adnoc L&S some USD 100 mn per year in technical management costs and costs associated with bunkering operations. The move adds some 32 tankers to the firm’s fleet, expanding its service portfolio to include commercial pooling and bunkering.

And more: The company has a major shipbuilding order book, including 10 new LNG carriers, nine very large ethane carriers, as well as four very large ammonia carriers, the company said.

ARAMEX-

UAE-based freight forwarding and logistics outfit Aramex saw its net income drop 14% y-o-y to AED 65. 7 mn (c. USD 17 mn) in 4Q 2024, according to an earnings release (pdf). The company’s revenues rose 11% y-o-y in the same period to AED 1.7 bn (c. USD 462 mn).

Overall growth in FY 2024: The company's net income increased 10% y-o-y to AED 141.8 mn in FY 2024, while its revenues rose 11% y-o-y in the same period to AED 6.32 bn, attributable to robust performance across all product lines driven by increased shipping volumes and boosted market share gains.

Aramex’s strongest markets: The company’s y-o-y revenues grew in the double digits in the GCC, Turkey, and MENA, and its Oceania operations’ revenue also grew by 50% y-o-y.

REMEMBER: Aramex is weighing an acquisition bid by ADQ subsidiary Q Logistics Holding, which, if accepted, will see the bidder acquiring 100% of the freight services firm. Aramex has until Friday, 14 March to respond, with the potential transaction expected to conclude in 3Q 2025. The acquisition would value Aramex at AED 4.39 bn, according to our calculations.

NMDC-

The UAE’s National Marine Dredging Company(NMDC) saw its net income climb 43% y-o-y to AED 916 mn in 4Q 2024, according to an earnings release (pdf) based on preliminary financial statements published on the ADX on Tuesday. Revenues rose 37% y-o-y to AED 7.7 bn for the same period.

Across-the-board growth in FY 2024: The company’s net income rose 44% y-o-y to AED 3.1 bn in FY 2024, with revenues rising 57% y-o-y to AED 26.3 bn for the same period. The company expanded its global presence both horizontally and vertically, according to a press release. It inked agreements for infrastructure projects with Ta’ziz, whilst its energy subsidiary NMDC Energy, whose IPO on the ADX last September raised AED 3.22 bn, was awarded contracts from Adnoc and Modon Holding. Going forward, NMDC Energy said it plans to scale up its existing operations and expand into new global markets, while in December its new logistics unit NMDC LTS was said to be considering new acquisitions.

ICYMI-NMDC is planning to invest USD 500 mn in offshore wind projects via its engineering, procurement, and construction (EPC) arm NMDC Energy, with CEO Ahmed Al Dhaheri indicating it has “potential” and could have “a good share of our business and of our revenue moving forward,” he told the National earlier this month.

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