Adnoc Logistics & Services Plc · ADX:ADNOCLS
Adnoc Logistics & Services — 9M 2024 Earnings Presentation
28 slides from Adnoc Logistics & Services's earnings presentation, Nov 13, 2024
Slide 1: First Nine Months of 2024 Results Presentation
ADNOC Classification: Internal FIRST NINE MONTHS OF 2024 RESULTS PRESENTATION 13 November 2024 ADNOC Logistics & Services
Slide 2: Disclaimer
ADNOC ADNOC Classification:Public 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
Slide 3: Agenda & Presenters
ADNOC ADNOC Classification:Public Classification: Public Agenda & Presenters 1 Health & Safety 2 9M 2024 Highlights Abdulkareem Al Masabi Chief Executive Officer 3 Growth Strategy 4 Financial & Operational Performance 5 Decarbonization & Sustainability Nicholas Gleeson Chief Financial Officer 6 Guid
Slide 4: ADNOC L&S' Leading Principle: 100% Health, Safety & Environment
ADNOC ADNOC Classification:Public Classification: Public 100% Health, Safety & Environment: ADNOC L&S’ Leading Principle Continued strong focus on health & safety KPIs OUTSTANDING HEALTH & SAFETY TRACK RECORD LEADING WITH INNOVATION Lost Time Incident Frequency (LTIF) Successful deployment of SMARTi
Slide 5: 9M 2024 Results Highlights
ADNOC ADNOC Classification:Public Classification: Public 9M 2024 Results Highlights HIGHLIGHTS KEY FINANCIAL HIGHLIGHTS – 9M 2024 ▪ Strong growth continues with Revenue up by 38%, EBITDA up by 37% and Net profit up by 27% YoY growth for 9M 2024. ▪ This robust growth is a result of the ongoing implem
Slide 6: Accelerating our Growth Strategy
ADNOC ADNOC Classification:Public Classification: Public Accelerating our Growth Strategy Expansion of fleet in line with transformational growth strategy to meet rising global demand for energy o Delivery of 6 LNG1 carriers (2025-2026) o 4 VLACs2 from Jiangnan Shipyard in China o 9 VLECs2 from Jian
Slide 7: Financial Summary
ADNOC ADNOC Classification:Public Classification: Public Financial Summary Strong Financials (USD millions) Q3 24 Q2 24 QoQ % Q3 23 YoY % 9M 24 9M 23 YoY % Financial Highlights Revenue 928 899 3% 702 32% 2,668 1,927 38% Income Statements: • Revenue rose by 38%, reaching $2.67 EBITDA 275 306 -10% 218
Slide 8: Financial Performance
ADNOC ADNOC Classification:Public Classification: Public Financial Performance Consistent robust growth fueled by value-adding investments and continuous efficiency enhancements REVENUE GROWTH YOY ($MM) EBITDA & NET PROFIT GROWTH YOY ($MM) 137 43 2,668 77 15 2 867 561 138 635 1,927 -230 576 -58 -2 R
Slide 9: Integrated Logistics: Growth Highlights
ADNOC ADNOC Classification:Public Classification: Public Integrated Logistics: Growth Highlights Continue to deliver growth across key activities Offshore Contracting: Number of Vessels Offshore Services: Number of Vessels and Utilization Rate Number of Vessels Utilization Rate Number of Vessels Uti
Slide 10: Integrated Logistics: Offshore Contracting
ADNOC ADNOC Classification:Public Classification: Public Integrated Logistics: Offshore Contracting Strong growth across offshore contracting operational activities Material Handling Volume (KMT1) Number of Jack-Up Barges +4% ▪ Higher volumes in 9M Chartered in Owned ▪ Fleet expansion (in 24 compare
Slide 11: Integrated Logistics – Financials
ADNOC ADNOC Classification:Public Classification: Public Integrated Logistics – Financials Strong revenue and profitability growth driven by expansion in overall activity levels REVENUE ($MM) EBITDA ($MM) ▪ Robust revenue growth Margin Margin 609 1,671 ▪ Higher revenues fueled by continued 32% 29% 3
Slide 12: Shipping: Benchmark TCE rates
ADNOC ADNOC Classification:Public Classification: Public Shipping : Benchmark TCE rates TANKERS (PRODUCT) Tanker Orderbook as % fleet 100,000 80,000 50.00 40.00 60,000 30.00 40,000 20.00 20,000 10.00 0 0.00 TANKERS (CRUDE) Tanker Supply & Demand Balance (Crude) - % 280,000 7.6 5.1 4.1 3.9 3.9 5.0 3.
Slide 13: Shipping: Operational Highlights
ADNOC ADNOC Classification:Public Classification: Public Shipping: Operational Highlights Continue to deliver strong growth in returns as demand outpaces supply NUMBER OF SHIPPING VESSELS1 NUMBER OF CHARTERED-IN VESSELS TIME CHARTER EQUIVALENT (USD) No. of owned vessels Utilization rate -4% +8% -16%
Slide 14: Shipping - Financials
ADNOC ADNOC Classification:Public Classification: Public Shipping - Financials Robust charter rates in Tankers and Dry-bulk, coupled with the expansion of the VLCC fleet, led to substantial revenue growth, which in turn boosted EBITDA and enhanced Net Profit REVENUE ($MM) EBITDA ($MM) 745 ▪ Expansio
Slide 15: Services
ADNOC ADNOC Classification:Public Classification: Public Services Exceptional EBITDA and profitability growth in 9M 2024 driven by increased volumes in petroleum ports and onshore terminal operations REVENUE ($MM) EBITDA ($MM) ▪ 9M 24 revenue increase Margin Margin ▪ Strong EBITDA growth 93 252 driv
Slide 16: Cash Flow Profile
ADNOC ADNOC Classification:Public Classification: Public Cash Flow Profile Continued strong free cash flows boost financial strength for future expansion FREE CASH FLOW EVOLUTION ($MM) COMMENTARY 867 708 CASHFLOW -101 -58 ▪ Strong free cash flow driven by strong -361 347 growth in core businesses an
Slide 17: Sustainability Strategy
ADNOC ADNOC Classification:Public Classification: Public Sustainability Strategy Sustainability abatement opportunities 2024-2050 and case studies Technical assessment & opportunities ADNOC L&S Shipping Fleet Carbon Intensity (AER3) 16.00 Potential Abatement projects in our shipping segment 2024-205
Slide 18: Segmental Medium Term (2024-28) Outlook
ADNOC ADNOC Classification:Public Classification: Public Segmental Medium Term (2024-28) Outlook REVENUE EBITDA 2024: Mid-40%s YoY growth 2024: Low-30%s YoY growth Integrated Logistics MT: Mid to high single digit YoY growth MT: Mid-single digit YoY growth beyond 2024 Offshore Contracting 2024: High
Slide 19: Group Medium Term Outlook
ADNOC ADNOC Classification:Public Classification: Public Group Medium Term Outlook PF: Proforma 2024 results including Navig8 as though fully consolidated, basis prior year results UPDATE ON CONSOLIDATED REVENUE CAPEX 2024: PF 2024: ▪ 2024: > $1.0bn in addition to M&A $1.0bn for the acquisition of 8
Slide 20: Contracted Revenue
ADNOC ADNOC Classification:Public Classification: Public Contracted Revenue Anchored by long-term contracts Segment Q4 2024 2025-29 2030++ % OF REVENUE UNDER LONG-TERM CONTRACTS Q4 2024 2025 $720 m $5.6 bn $2.1 bn Integrated Logistics Integrated Logistics : mainly consist of ~4% Q4 2024 • Offshore c
Slide 21: Closing Remarks
ADNOC ADNOC Classification:Public Classification: Public Closing Remarks STRONG COMMITTED STRONG GROWTH CONTINUED TO ATTRACTIVE EBITDA STRATEGY EARNINGS SHAREHOLDERS MARGIN EXECUTION GROWTH RETURNS 21
Slide 22: Appendix
APPENDIX ADNOC Logistics & Services HIGHLY RESTRICTED
Slide 23: ADNOC L&S Shareholder & Free Float
ADNOC L&S Shareholder & Free Float ADNOC L&S SHAREHOLDERS (%) 19% 81% ADNOC Free Float 23 * As of end January, 2025. HIGHLY RESTRICTED
Slide 24: Navig8 Acquisition
Navig8 Acquisition Acquisition of 80% in Navig8 with a path to full ownership in 3 years TRANSACTION OVERVIEW PRO-FORMA FINANCIALS (2023) ▪ Global maritime operator with commercial shipping pools and a fleet of 32x1 high quality, modern tankers Revenue $2.8bn $1.9bn $4.7bn +68% ▪ Service offerings i
Slide 25: Transaction Rationale
Transaction Rationale ADNOC L&S GCC operations: Navig8 delivers ADNOC L&S’ offering on a global scale, supplemented with new valuable service offerings Key complementary services added: Fleet Fuelling Commercial Technical Crew Additional Digital services Qatar additions services pooling management h
Slide 26: Consolidation Consideration for Navig8
ADNOC ADNOC Classification:Public Classification: Public Consolidation Consideration for Navig8 Impact on ADNOC L&S consolidated financial statements Acquisition date of 31 Oct Acquisition date of 31 Jan Items 2024 2025 1 Line by line consolidation of Navig8 assets and liabilities As at 31 Oct 2024
Slide 27: Business Segments Structure Post Navig8 Integration
Business Segments Structure Post Navig8 Integration Segments Integrated Logistics Shipping Services Owned vessels Offshore Contracting 1 Tankers4 Onshore Services TC-in vessels Sub-segments Marine Services Offshore Services 2 Gas Carriers Bunkering (Integ8) Dry-bulk & Technical management Offshore P
Slide 28: Thank You
THANK YOU www.adnocls.ae IR@adnocls.ae ADNOC Logistics & Services HIGHLY RESTRICTED
ADNOC Logistics & Services — 9M 2024 Earnings Presentation on 6ix