Slide 1: H1 2023 Results Presentation
ADNOC Classification: Public H1 2023 RESULTS PRESENTATION 10 August 2023
Slide 2: Disclaimer
ADNOC Classification: Public Disclaimer This presentation has been prepared by ADNOC Logistics & Services Plc (the ‘Company’) based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informational pu
Slide 3: Agenda & Presenters
ADNOC Classification: Public Agenda & Presenters 1 Safety 2 H1 23 Highlights Abdulkareem Al Masabi Chief Executive Officer 3 Growth Strategy 4 Financial & Operational Performance Nicholas Gleeson Chief Financial Officer 5 Decarbonization & Sustainability 6 Guidance 7 Closing Remarks 3
Slide 4: 100% Health, Safety & Environment: ADNOC L&S' Leading Principle
ADNOC Classification: Public 100% Health, Safety & Environment: ADNOC L&S’ Leading Principle Continued strength in health & safety KPIs HIGH HEALTH & SAFETY STANDARDS & OUTSTANDING TRACK RECORD – WELL BELOW INDUSTRY BENCHMARK SAFETY AWARD Lost Time Incident Frequency (LTIF) IMCA Safety Award 0.35 •
Slide 5: H1 23 Results Highlights
ADNOC Classification: Public H1 23 Results Highlights HIGHLIGHTS KEY FINANCIAL HIGHLIGHTS – H1 23 ▪ Strong H1 23 Results: Net Profit $307 mm (+327%, yoy), driven by growth across all three segments $1,225 $417 mm $307 mm ▪ H1 23 EBITDA margin 34.1% (H1 22: 19.2%) driven mm EBITDA Net profit by ZMI1
Slide 6: Attractive and Accretive Growth Strategy
ADNOC Classification: Public Attractive and Accretive Growth Strategy Focused and well-defined levers for growth, targeting low double-digit unlevered IRRs 1 EXPANSION OF SERVICES PROVISION OF INCREMENTAL PROVIDED TO ADNOC SERVICES TO EXISTING CLIENTS $975 Million EPC3 Contract for Construction of T
Slide 7: Financial Summary
ADNOC Classification: Public Financial Summary Strong financials (USD millions) Q2 22 Q1 23 Q2 23 QoQ % YoY % H1 22 H1 23 YoY % Revenue 443 592 632 7% 43% 756 1,225 62% EBITDA 94 199 219 10% 132% 145 417 188% Margin 21% 33.6% 34.5% 1% 13% 19% 34% 15% Net Profit 56 145 162 12% 189% 72 307 327% EPS ($
Slide 8: Robust Financial Performance
ADNOC Classification: Public Robust Financial Performance Exceptional growth in revenues, EBITDA and margins REVENUE ($MM) EBITDA ($MM) Margin Margin 21% 35% 19% 34% 632 1,225 219 417 443 756 43% 94 62% 132% 145 188% Q2 22 Q2 23 H1 22 H1 23 Q2 22 Q2 23 H1 22 H1 23 ▪ Increased revenues in H1 23 drive
Slide 9: Operational Highlights: Integrated Logistics & Shipping
ADNOC Classification: Public Operational Highlights: Integrated Logistics & Shipping INTEGRATED LOGISTICS: SHIPPING MATERIAL HANDLING VOLUME 56 >95% >15% H1 22 H1 23 No of owned vessels1 Utilization rate (H1 23) ▪ Solid growth in material handling volumes mainly driven by integrated ▪ Strong utiliza
Slide 10: Shipping Business Unit: Benchmark TCE rates
ADNOC Classification: Public Shipping Business Unit: Benchmark TCE rates TANKERS (PRODUCT) Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 MARKET INSIGHT TANKERS (CRUDE) ▪ Softer rates in tanker market recently, as anticipated ▪ Rates normalization for dry bulk Jan-21 Apr-21 Ju
Slide 11: Integrated Logistics
ADNOC Classification: Public Integrated Logistics ZMI 1 acquisition, new contract activity and improving logistics and cost efficiencies drove high growth in revenues & profitabilit y REVENUE ($MM) EBITDA ($MM) Margin Margin 378 729 ▪ Solid revenue growth ▪ EBITDA margin 8% 35% 12% 32% mainly driven
Slide 12: Shipping
ADNOC Classification: Public Shipping Robust charter rates for Tankers and Gas Carriers, with new vessel deliveries, drove growth in revenues and margins REVENUE ($MM) EBITDA ($MM) Margin Margin 408 ▪ Improved H1 23 ▪ EBITDA margin 223 373 34% 41% 28% 41% 208 130 revenues mainly due supported by 85
Slide 13: Marine Services
ADNOC Classification: Public Marine Services Revenue growth and operating efficiencies translated into margin expansion REVENUE ($MM) EBITDA ($MM) Margin Margin 47 88 ▪ Benefited from ▪ EBITDA margin 38 equipment services 15% 19% 14% 19% expansion driven by 9 revenue growth 17 74 6 24% 10 19% 50% 70
Slide 14: Cash Flow Profile
ADNOC Classification: Public Cash Flow Profile EBITDA growth delivered story operating free cash flows and increasing financial capacity to fund growth FREE CASH FLOW EVOLUTION1 ($MM) COMMENTARY Cashflow ▪ Free cash flow $82 mm underpinned by higher operating free cash flow supported by increase in
Slide 15: Delivering on Decarbonization and Sustainability
ADNOC Classification: Public Delivering on Decarbonization and Sustainability Leverage our maritime heritage to enhance Achieve the UAE’s 2050 net-zero A sustainability leader for the UAE’s the UAE’s status in the global maritime target and exceed the IMO’s marine & logistics ecosystem industry deca
Slide 16: Segmental Medium-term Targets
ADNOC Classification: Public Segmental Medium-term Targets INTEGRATED LOGISTICS SHIPPING MARINE SERVICES Revenue Revenue Revenue ▪ Targeting strong double-digit year-on-year ▪ Gas Carriers: Low single digit growth in the ▪ Targeting mid to high single digits YoY growth in 2023 and 2024 including the
Slide 17: Group Medium Term Targets
ADNOC Classification: Public Group Medium Term Targets CONSOLIDATED REVENUE CONSOLIDATED EBITDA ▪ Targeting mid-to-high single digit growth year- ▪ EBITDA margin in 2023 expected to be above 30% on-year over the medium term ▪ Targeting average annual EBITDA growth in the low teens towards an EBITDA
Slide 18: Closing Remarks
ADNOC Classification: Public Closing Remarks STRONG EBITDA GROWTH POSITIVE ADJUSTMENT CONTINUED MARGIN STRATEGY IN FY 23 GUIDANCE EARNINGS GROWTH EXPANSION EXECUTION 18
Slide 19: Thank You
ADNOC Classification: Public THANK YOU www.adnocls.ae IR@adnocls.ae