The UAE’s state-owned Abu Dhabi National Oil Company’s (Adnoc) logistics arm, Adnoc L&S, reported a 189% y-o-y jump in net income to USD 162 mn in 2Q 2023, according to its first earnings release (pdf) since its IPO in June. Net revenues during the period also saw a 43% y-o-y rise to USD 632 mn. The company recorded a 327% y-o-y surge in net income to USD 307 mn during 1H 2023, while revenues rose 62% y-o-y to USD 1.2 bn.

Driving the surge in revenues: The increase was driven by the acquisition of Zakher Marine International, as well as the expansion of its service offerings and the upward trend in shipping rates, the earnings release said.

The breakdown: Adnoc L&S’ integrated logistics segment saw the biggest boost to revenues, with a 136% y-o-y jump to USD 729 mn during 1H 2023, driven mainly by new barges and support fleet acquired from Zakher Marine. Marine service revenues during the half saw a 19% y-o-y rise to USD 88 mn in 1H 2023, driven by one-off equipment services and higher volumes managed. The shipping segment also grew 9% y-o-y to USD 408 mn, boosted by the entry of two new charters into service to leverage rising spot rates.

Looking ahead: The company is targeting “mid-to-high single digit growth” in revenues y-o-y in the medium term, the earnings release said.

Background: This marks the company’s first financial report since its historic IPO in June, which saw the company raise USD 769 mn following a bookbuilding process that saw record demand.

Tags: