UAE Equity Research - ADNOC Logistics and Services PLC 2Q25 - First Look Note
Revenue rose 39.8% YOY to USD 1,258 Mn in 2Q25, driven by the robust performance across all business segments. Secured a USD 531 Mn, 15-year contract in 2Q25 from Borouge to manage its logistics for c. 70% of the yearly production. Achieved USD 51 Mn out of the targeted USD 100 Mn savings in 1H25 and expects more than USD 50 Mn additional savings in 2H25.
Revenue rose 39.8% YOY to USD 1,258 Mn in 2Q25, attributed to strong growth across all segments. Revenue from Integrated Logistics grew 20.8% YOY to USD 665 Mn in 2Q25 due to healthy growth across material handling volumes, expansion in JUB fleet with higher utilization rate, rise in chartering activity and execution of the G-Island and Hail & Ghasha project.
UAE Equity Research - ADNOC Logistics & Services PLC (ADNOCL&S) 1Q25 - First Look Note
Revenue rose 40.6% YOY to USD 1,181 Mn in 1Q25, mainly driven by consolidation of Navig8 revenues. Company acquired 80% stake in Navig8 for USD 1 Bn, added 32 tankers, expanding global shaping capacity.
Revenue rose 40.6% YOY to USD 1,181 Mn in 1Q25, attributed to strong growth across all segments. Revenue from Integrated Logistics grew 22.6% YOY to USD 628 Mn in 1Q25 due to healthy growth across EPC projects and improved utilization rate across Jack-up barges.
UAE Equity Research - ADNOC Logistics and Services PLC (ADNOCLS) 4Q24 - First Look Note
The board of directors recommended a cash dividend of 6.78 fils per share for 2H24 amounting to USD 136.5 Mn. ADNOCLS expects the dividend to grow 5% annually over the medium term. The Company expects the consolidated revenue to grow in the range of mid to high 40% YOY for FY2025.
UAE Equity Research - ADNOC LS - Navig8 Acquisition Insight
ADNOC L&S acquired an 80% stake in Navig8 for USD 1.04 Bn, while the remaining 20% stake will be acquired in June 2027 for consideration between USD 355-450 Mn, depending on Navig8 ad-interim EBITDA performance. Navig8 was supposed to be acquired for a consideration of USD 1.04 Bn earlier, but ADNOC L&S paid a consideration of USD 1.0 Bn owing to Navig8’s shareholder's decision to distribute cash dividends to themselves, resulting in a permitted leakage.
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