Adnoc Logistics & Services Plc · ADX:ADNOCLS
Adnoc Logistics & Services — Investor Presentation (December 2024)
67 slides from Adnoc Logistics & Services's investor presentation, Dec 10, 2024
Slide 1: ADNOC Logistics & Services
ADNOC Classification: Internal ADNOC LOGISTICS & SERVICES INTEGRATED LOGISTICS | SHIPPING | SERVICES
Slide 2: Disclaimer
ADNOC Classification: Internal 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
Slide 3: Agenda
ADNOC Classification: Internal Agenda 1 Our Journey……………………………….…....4 Appendix 2 Growth Strategy……..…………………….….5 1 Our Vision and Mission…………………….36 3 Navig8 Acquisition…………..…………..…...9 2 Safety…………………………………………....37 3 Who We Are…………………………………...38 4 Financial Summary………………………..…11 4 Our Business S
Slide 4: Our Journey
ADNOC Classification: Internal Our Journey 2016 Expanded Integrated Logistics ▪ Launched ILSP ▪ Expanded into Jack-Up Barges (JUBs) and CREATION OF ADNOC L&S Realized merger synergies Delivered accretive Shipping growth plan new markets VIA INTEGRATION OF ▪ Operations efficiency and unified ▪ Establ
Slide 5: Attractive and Accretive Growth Strategy
ADNOC Classification: Internal Attractive and Accretive Growth Strategy Focused and well-defined levers for growth GROW WITH ADNOC: SERVICE NEW 1 2 EXPAND SERVICE OFFERING TO 1 2 GROWTH AND EXPAND SERVICE CAPTURE ADITIONAL BUSINESS WITH OFFERING EXISTING CLIENTS ▪ Delivering additional value in exis
Slide 6: Strategic Growth Investments
ADNOC Classification: Internal Strategic Growth Investments1 2022 2023 2024 (YTD) • ZMI Acquisition • 4x VLCCs delivered • Navig8 Acquisition • 8 – 10x LNG Carriers • 6x LNG Carriers ordered; • 8x JUBs delivered (6x owned; ordered; all contracted 5x contracted 2x chartered-in) • 9x VLECs ordered; al
Slide 7: Growth Strategy: Strong Delivery in 2023
ADNOC Classification: Internal Growth Strategy: Strong Delivery in 2023 Expansion of environmentally efficient fleet and pursue new growth opportunities DELIVERY OF FOURTH VLCC1 EIGHT ADDITIONAL JACK-UP BARGES $975 MILLION EPC2 CONTRACT FOR IN CONTINUED FLEET GROWTH EXPANDING ADNOC L&S’ FLEET BY 25%
Slide 8: Accelerating our Growth Strategy
ADNOC Classification: Public ADNOC Classification: Internal 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 J
Slide 9: Navig8 Acquisition
ADNOC Classification: Internal 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
Slide 10: Navig8 Acquisition - Rationale
ADNOC Classification: Internal Navig8 Acquisition - 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
Slide 11: Financial Summary
ADNOC Classification: Public ADNOC Classification: Internal Financial Summary Strong Financials (USD millions) Q3 24 Q2 24 QoQ % Q3 23 YoY % 9M 24 9M 23 YoY % Revenue 928 899 3% 702 32% 2,668 1,927 38% EBITDA 275 306 -10% 218 26% 867 635 37% Margin 30% 34% -4% 31% -1% 32% 33% -1% Net Profit 175 208
Slide 12: Segmental Medium Term (2024-28) Outlook
ADNOC Classification: Internal 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: Higher ILSP Volumes, JUB utili
Slide 13: Group Medium Term Outlook
ADNOC Classification: Public ADNOC Classification: Internal 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 o
Slide 14: Progressive Dividend Policy
ADNOC Classification: Internal Progressive Dividend Policy • ADNOC L&S remains committed to delivering sustainable, profitable growth and attractive shareholder returns. • In line with its approved dividend policy, the company paid total dividend of $195 million for Q2 and H2 2023 [annualized divide
Slide 15: Navig8 Overview
ADNOC Classification: Internal Navig8 Overview 15
Slide 16: Navig8 Overview
ADNOC Classification: Internal Navig8 Overview Shipping platform with 31x + 1x 12x Attractive, 6x 5.5m +1,500 1 High spec, value-added services Owned vessels young fleet TC-in vessels risk managed Pools MT of fuel Daily users + newbuilds portfolio traded p.a Global coverage Blue-chip customer base 2
Slide 17: Navig8 Overview
ADNOC Classification: Internal Navig8 Overview Establishes ADNOC L&S immediately as a global force in maritime energy transportation Shipping operations Shipping services Technical Commercial Owned vessels TC-in vessels Management & Bunkering pools agency Young and high-quality, modern and eco- Leas
Slide 18: Transaction Rationale
ADNOC Classification: Internal Transaction Rationale Immediately addresses pre-existing tankers fleet expansion strategy targeting value in undersupplied market ▪ Reduced supply expected to preserve supportive conditions in the tanker Tanker orderbook as % of fleet: lowest in recent history market 6
Slide 19: Transaction Rationale
ADNOC Classification: Internal Transaction Rationale The Transaction delivers strongly on ADNOC L&S’ IPO-announced transformational growth strategy ADNOC L&S growth strategy How the Transaction aligns with our strategy… 1 GROW WITH ADNOC: ▪ Navig8’s global presence across 5 continents will enhance L
Slide 20: Transaction Rationale
ADNOC Classification: Internal Transaction Rationale Beyond growth, cost rationalization opportunities are anticipated to drive further value improvement Commercial pooling: Technical management: Internalization of pooling & commission Savings on technical management fees fees Internalisation opport
Slide 21: Transaction Pro-Forma Financials
ADNOC Classification: Internal Transaction Pro-Forma Financials Transaction will be strategically and financially transformative to ADNOC L&S Revenue $2.8bn $1.9bn $4.7bn +68% EBITDA ’23A $0.9bn $0.4bn $1.3bn +44% (% margin) (32%) (21%) (28%) Net Debt / EBITDA (0.1x) 1.5x 1.4x # vessels ‘23A 57x1 32
Slide 22: Consolidation Consideration for Navig8
ADNOC Classification: Public ADNOC Classification: Internal 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 20
Slide 23: 9M 2024 Results Highlights
ADNOC Classification: Internal 9M 2024 Results Highlights 23
Slide 24: 9M 2024 Results Highlights
ADNOC Classification: Public ADNOC Classification: Internal 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 imp
Slide 25: Financial Summary
ADNOC Classification: Public ADNOC Classification: Internal 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 $2.67 EBITDA 275 306 -10%
Slide 26: Financial Performance
ADNOC Classification: Public ADNOC Classification: Internal Financial Performance Consistent robust growth fueled by value-adding investments and continuous efficiency enhancements REVENUE GROWTH YOY ($MM) EBITDA & NET PROFIT GROWTH YOY ($MM) 137 43 2 668 77 15 2 867 561 138 635 1 927 23 576 58 2 2
Slide 27: Integrated Logistics: Growth Highlights
ADNOC Classification: Public ADNOC Classification: Internal Integrated Logistics: Growth Highlights Continue to deliver growth across key activities Offshore Contracting: Number of Vessels Offshore Services: Number of Vessels and Utilization Rate Number of Vessels Utilization Rate Number of Vessels
Slide 28: Integrated Logistics: Offshore Contracting
ADNOC Classification: Public ADNOC Classification: Internal Integrated Logistics: Offshore Contracting Strong growth across offshore contracting operational activities Material Handling Volume (KMT1) Number of Jack-Up Barges +4% ▪ Higher volumes in 9M Chartered in Owned ▪ Fleet expansion (in 24 comp
Slide 29: Integrated Logistics – Financials
ADNOC Classification: Public ADNOC Classification: Internal Integrated Logistics – Financials Strong revenue and profitability growth driven by expansion in overall activity levels REVENUE ($MM) EBITDA ($MM) ▪ Robust revenue growth Margin Margin 609 1,671 ▪ Higher revenues fueled by continued 32% 29
Slide 30: Shipping: Benchmark TCE rates
ADNOC Classification: Public ADNOC Classification: Internal Shipping : Benchmark TCE rates TANKERS (PRODUCT) Tanker Orderbook as % fleet 100,000 80,000 50.00 40.00 60,000 30.00 40,000 20.00 20,000 10.00 0 0.00 TANKERS (CRUDE) Tanker Supply & Demand Balance (Crude) - % 280,000 7.6 5.1 4.1 3.9 3.9 5.0
Slide 31: Shipping: Operational Highlights
ADNOC Classification: Public ADNOC Classification: Internal Shipping: Operational Highlights Continue to deliver strong growth in returns as demand outpaces supply NUMBER OF SHIPPING VESSELS1 NUMBER OF CHARTERED-IN VESSELS TIME CHARTER EQUIVALENT (USD) No. of owned vessels Utilization rate -4% +8% -
Slide 32: Shipping - Financials
ADNOC Classification: Public ADNOC Classification: Internal Shipping - Financials Robust charter rates in Tankers and Dry-bulk, coupled with the expansion of the VLCC fleet, led to substantial revenue growth, which in turn boosted EBITDA and enhanced Net Profit REVENUE ($MM) EBITDA ($MM) 745 ▪ Expan
Slide 33: Services
ADNOC Classification: Public ADNOC Classification: Internal Services Exceptional EBITDA and profitability growth in 9M 2024 driven by increased volumes in petroleum ports and onshore terminal operations REVENUE ($MM) EBITDA ($MM) ▪ 9M 24 revenue increase Margin Margin ▪ Strong EBITDA growth 93 252 d
Slide 34: Cash Flow Profile
ADNOC Classification: Public ADNOC Classification: Internal Cash Flow Profile Continued strong free cash flows boost financial strength for future expansion FREE CASH FLOW EVOLUTION ($MM) COMMENTARY 867 7 8 CASHFLOW 1 1 58 ▪ Strong free cash flow driven by strong 361 347 growth in core businesses an
Slide 35: Appendix
ADNOC Classification: Internal APPENDIX
Slide 36: Our Vision And Mission
ADNOC Classification: Internal Our Vision And Mission A Global Energy Maritime Logistics Leader ADNOC Logistics & Services plc is the dedicated and vital logistics arm of ADNOC Group, providing mission- critical and highly specialized services across the entire energy value chain. 36
Slide 37: 100% Health, Safety & Environment: ADNOC L&S' Leading Principle
ADNOC Classification: Public ADNOC Classification: Internal 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 SMA
Slide 38: Global Energy Maritime Logistics Leader
ADNOC Classification: Internal Global Energy Maritime Logistics Leader High quality assets serving blue-chip customer base • One of the largest diversified shipping fleets • Modern and advanced fleet • Largest owner/operator of self-propelled, self-elevating JUBs • One of the largest integrated ener
Slide 39: Our Fleet
ADNOC Classification: Internal Our Fleet Integrated Logistics Shipping Services Offshore Contracting Offshore Services Shipping Marine & Onshore Services Offshore Projects Tankers Dry Bulk Oil spill and HNS Jetty services and EPC Cargo and supply Petroleum Port operations operations response service
Slide 40: Operations Across the UAE
ADNOC Classification: Internal Operations Across the UAE We operate from sites covering the entire network We operate logistics bases and warehouses in Mussafah, Ruwais DAS ISLAND Industrial City, RIASH and Fujairah. SHARJAH We provide our services at our world- FUJAIRAH PORT ZIRKU class infrastruct
Slide 41: Business Segments Structure Post Navig8 Integration
ADNOC Classification: Internal 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 &
Slide 42: Integrated Logistics
ADNOC Classification: Internal Integrated Logistics We are one of the world’s largest fully integrated, energy maritime logistics services provider, transporting the people, materials and equipment required to develop and maintain vital energy production. Our Integrated Logistics business offers: ▪
Slide 43: Integrated Logistics Footprint
ADNOC Classification: Internal Integrated Logistics Footprint DAS Mussafah logistics base ISLAND ZIRKU ISLAND KEZAD FUJAIRAH ABU DHABI MUSSAFAH RUWAIS/JEBEL 1.5 MILLION SQM DHANNA QUAY CRANES 24/7 INTEGRATED SPECIALIST LOGISTICS BASE MANPOWER DIVING SUPPORT SERVICES WAREHOUSE & PORT SERVICES & GRIND
Slide 44: Integrated Logistics Model
ADNOC Classification: Internal Integrated Logistics Model Our Integrated Logistics Services Platform (ILSP) reduces the complexity of our customers’ vast range of logistics requirements through one system, reducing project logistics costs, with customers being invoiced in a unique, cost-per-ton form
Slide 45: Shipping
ADNOC Classification: Internal Shipping Our large, diversified fleet of modern and technologically-advanced vessels deliver a wide range of vital energy-related products to over 50 countries and transports: ▪ Gas ▪ Crude Oil ▪ Refined Products ▪ Dry Bulk 45
Slide 46: International Reach
ADNOC Classification: Internal International Reach Transported over 30 million Mt around the world in 2022 to 100+ customers in 50+ countries One of the largest diversified shipping fleets in the Middle East Modern and advanced fleet One of the largest integrated energy supply bases in the region On
Slide 47: Services
ADNOC Classification: Internal Services Our Services business unit is comprised of three key business lines: ▪ Petroleum Port Operations: Specialist marine terminals operations, covering all petroleum port operations in the Emirate of Abu Dhabi ▪ Onshore Services: Container terminal operation which
Slide 48: Services
ADNOC Classification: Internal Services The most diversified in the UAE We provide a comprehensive range of specialist marine operations services, manage all Petroleum Ports and offer oil spill and HNS response services. MARINE SERVICES ADNOC PETROLEUM FLEET OF 65 VESSELS PORTS OPERATOR Marine suppo
Slide 49: Sustainability: Net Zero
ADNOC Classification: Internal Sustainability We are investing today in sustainable assets, and adopting environmentally efficient 2045 Ambition technologies to support ADNOC Group’s Net Zero by 2045 ambition the UA ’s Net Zero 2050 strategy, and the IMO Net Zero target. NET ZERO 2023 RECORDS 24% $2
Slide 50: Sustainability Strategy
ADNOC Classification: Public ADNOC Classification: Internal 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-
Slide 51: Symbiotic Relationship with ADNOC as Anchor Customer
ADNOC Classification: Internal Symbiotic Relationship with ADNOC as Anchor Customer Key player in the ADNOC eco-system and service provider of choice to ADNOC Offshore ADNOC as anchor customer ILSP – Provider to Petroleum accounting for >70% of 10 years2 Ports Authority contract – revenue 25 years3
Slide 52: Contracted Revenue
ADNOC Classification: Internal 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 contracting : Material Hand
Slide 53: Driven by ADNOC Group's Growth Strategy
ADNOC Classification: Internal …Driven by ADNOC Group’s Growth Strategy KEY TARGETS PRODUCTION GROWTH INTERNATIONAL GROWTH LOW CARBON SOLUTIONS ✓ Crude Capacity: 5mmbpd by 2027 $15bn Allocated Net Zero by 2050 1 Oil ✓ Refining Capacity: 1mmbpd+ ✓ Carbon Capture 2 LNG ✓ Electrification ✓ Petrochemica
Slide 54: Innovation & Technology
ADNOC Classification: Internal Innovation & Technology ADNOC L&S leverages AI and other advanced technologies to enhance operational efficiency and safety. Initiatives like the "Smart Ship" predictive maintenance solution exemplify the company's innovation efforts. The company is committed to utiliz
Slide 55: The Partner of Choice
ADNOC Classification: Internal The Partner of Choice We develop strategic relationships to increase our global reach, accelerate innovation, optimize operations and reinforce our continued role in creating value for Abu Dhabi and the UAE. As we continue to deliver ADNOC’s energy to the world efficie
Slide 56: L&S Fleet: Number of Vessels
ADNOC Classification: Internal ADNOC L&S Fleet: Number of Vessels # Logistics bases & warehouses Onshore 5 Integrated Logistics # Offshore Vessels Offshore 111 150 Vessels # Jack-Up Barges Jack-Up Barges 39 # Containers Ultramax Supramax Handysize Total Dry-bulk 3 4 4 1 12 Shipping # LNG1 LPG Molten
Slide 57: Share Price Chart
ADNOC Classification: Internal SHARE PRICE CHART SHARE PRICE CHART (AED) 1 AVERAGE MONTHLY VALUE ($ million) 6.00 17.0 5.60 5.20 4.80 4.40 10.4 9.6 4.00 8.3 3.60 5.7 5.7 5.3 5.1 3.20 4.7 4.5 4.6 4.1 3.8 2.80 2.6 2.6 2.2 1.9 2.40 First day of trading IPO Price 2.01 2.00 31/May 31/Jul 30/Sep 30/Nov 31
Slide 58: ADNOC L&S Shareholder & Free Float
ADNOC Classification: Internal ADNOC L&S Shareholder & Free Float ADNOC L&S SHAREHOLDERS (%) Other institutional & retail investors 13.91% 19% 81% Cornerstone investors 5.09% ADNOC Free Float • Free float percentage excluding cornerstone investors increased by 1.13% since IPO 58 * As of Oct. 31, 202
Slide 59: Navig8 Details
ADNOC Classification: Internal NAVIG8 DETAILS
Slide 60: Transaction Overview
ADNOC Classification: Internal Transaction Overview Immediate acquisition of 80% with a 3-year path to full ownership 31-Dec-23 31-Dec-24 31-Dec-25 31-Dec-26 31-Dec-27 80% ownership 100% ownership A Average yearly EBITDA measurement period Initial cash consideration Deferred cash consideration $1.04
Slide 61: Navig8 Overview
ADNOC Classification: Internal Navig8 Overview An exceptional global operator under successful entrepreneurial leadership Joint-control upon specific governance rights Gary Brocklesby Nicolas Busch on Integr8 provided to Gary Brocklesby and Nicholas Busch as part of the Transaction Chairman and CEO
Slide 62: Navig8 Overview
ADNOC Classification: Internal Navig8 Overview A global network further enhancing ADNOC L&S international profile, blue chip customers and trading routes Blue chip customer base 15 5 350+ Cities globally Continents coverage Employees A shipping pool brings together a number of similar vessels under
Slide 63: Navig8 Overview
ADNOC Classification: Internal Navig8 Overview Shipping operations comprising of a high-quality modern and eco-oriented fleet with an attractive TC-in portfolio Owned vessels TC-in vessels ▪ 15x MR currently owned with an average age of 5.1 years (total capacity of c. 590,000 DWT) ▪ 7x MR currently
Slide 64: Navig8 Overview
ADNOC Classification: Internal Navig8 Overview Best in class shipping services model with asset light pools and commercial manager with strong technical capabilities Commercial pool management Technical management and agency One of the largest independent pool and commercial Comprises mainly of owne
Slide 65: Navig8 Overview
ADNOC Classification: Internal Navig8 Overview Integr8 Fuels, a comprehensive bunker procurement services 850+ $14m in CY 2023A EBITDA Customers 70+ Back-to-back Traders Fuel sale and purchase, worldwide limiting spot exposure Post- completion of the transaction, Integr8 will be jointly controlled b
Slide 66: Shipping Operations: Owned fleet and TC-in portfolio
ADNOC Classification: Internal Navig8 Overview Shipping Operations: Owned fleet and TC-in portfolio Owned fleet Leased (time chartered-in) fleet Name Type Model Age (years) DWT (‘000) Builder Name Type Model Age (years) DWT (“000) Builder 1 Leicester1 Tanker VLCC 7.3 300 Shanghai Waigaoqiao 1 Polar
Slide 67: Thank You
ADNOC Classification: Internal THANK YOU www.adnocls.ae IR@adnocls.ae ADNOC Logistics & Services
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