ADNOC L&S to Pay $136.5 Million as Cash Dividend

Riding high on profits, ADNOC Logistics and Services plc, a global energy maritime logistics leader, on Tuesday announced that its Board of Directors have approved the distribution of a cash dividend of $136.5 million for the first half of 2024.

The company intends to distribute a total dividend amount of $273 million for the full year, a 5% increase on the 2023 annualized dividend, in line with its approved dividend policy, it said in a regulatory filing this morning.

The H1-2024 dividend will be paid to shareholders who own ADNOC L&S shares on the record date of 17 October 2024.

ADNOC L&S CEO Captain Abdulkareem Al Masabi said that they were pleased to announce the H1 of 2024 cash dividend, reflecting the company’s strong cash position and balance sheet.

“We remain committed to shareholder returns through value-accretive growth and the distribution of dividends as ADNOC L&S continues to make significant progress in its transformational growth strategy through strategic investments, while remaining focused on delivering value to our shareholders and stakeholders,” he said.

The dividend is in line with the previously announced Board-approved dividend policy, which sets a progressive annual dividend increase per share of at least 5% per annum over the medium term, using the 2023 annualized dividend of $260 million as the baseline.

The Company intends to pay dividends on a semi-annual basis, with an initial payment for its first-half results paid out in the fourth quarter of that year, and a second payment following its second-half results paid out in the second quarter of the following calendar year.

Since the start of 2024, ADNOC L&S has announced the commissioning of eight to 10 LNG Carriers (LNGC), two to four Very Large Ammonia Carriers (VLACs), and nine Very Large Ethane Carriers (VLECs), and has announced the ongoing acquisition of Navig8(1). With these milestones, ADNOC L&S has increased its global footprint, capabilities, services and market-leading energy-efficient fleet.

Financial Performance

During H1 of 2024, ADNOC L&S recorded a net profit of $401 million, an increase of 31% on H1 of 2023. The company reported revenues of $1.74 billion in the same period, up 42% on H1 of 2023. EBITDA rose by 42% to $591 million driven by robust performance across all business segments, sustaining EBITDA margins at 34%.

The company’s second quarter revenue increased by 42% year-on-year to $899 million with EBITDA growing 40% y-o-y to $306 million. Net profit for the second quarter grew 28% y-o-y to $208 million.

This strong financial growth was driven by the ongoing implementation of ADNOC L&S’ transformational growth strategy whereby the company intends to invest of over $5 billion in value-accretive growth opportunities in energy-related maritime logistics by the end of 2028.

ADNOC L&S has committed over 50% of this strategic investment target one year post its record-breaking IPO, including significant investments against long-term contracted demand.