Adnoc Logistics & Services Plc · ADX:ADNOCLS
Adnoc Logistics & Services — H1 2024 Earnings Presentation
26 slides from Adnoc Logistics & Services's earnings presentation, Aug 7, 2024
Slide 1: First Half 2024 Results Presentation
ADNOC Classification: Internal FIRST HALF 2024 RESULTS PRESENTATION 07 August 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 Safety 2 H1 2024 Highlights Abdulkareem Al Masabi Chief Executive Officer 3 Growth Strategy 4 Financial & Operational Performance 5 Decarbonization & Sustainability Nicholas Gleeson Chief Financial Officer 6 Guidance 7 Cl
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 SAFETY THROUGH ARTIFICIAL INTELLIGENCE Lost Time Incident Frequency (LTIF) Artificial Intel
Slide 5: H1 2024 Results Highlights
ADNOC ADNOC Classification:Public Classification: Public H1 2024 Results Highlights HIGHLIGHTS KEY FINANCIAL HIGHLIGHTS – H1 2024 ▪ Strong growth continues with 31% increase in Net Profit vs H1 2023. ▪ This strong growth was driven by the continuing execution of $1,740 ADNOC L&S’ ambitious transform
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 New building contracts for four (plus one New building contracts for four (plus one Delivery of six LNG1
Slide 7: Accelerating our Growth Strategy (Cont.)
ADNOC ADNOC Classification:Public Classification: Public Accelerating our Growth Strategy (Cont.) ADNOC L&S’ JV with Wanhua Chemicals, AW Shipping, signed shipbuilding contracts for VLECs and VLACs 2 to 4 VLACs1 from Jiangnan Shipyard in China 9 VLECs2 from Jiangnan Shipyard in China ▪ Awarded shipb
Slide 8: Financial Summary
ADNOC ADNOC Classification:Public Classification: Public Financial Summary Strong Financials (USD millions) Q2 24 Q1 24 QoQ % Q2 23 YoY % H1 24 H1 23 YoY % Financial Highlights Revenue 899 840 7% 632 42% 1,740 1,225 42% Income Statements: • Revenue surged by 42%, reaching $1.74 EBITDA 306 286 7% 219
Slide 9: Financial Performance
ADNOC ADNOC Classification:Public Classification: Public Financial Performance Continued strong growth driven by investments that add significant value and ongoing efficiency improvements REVENUE ($MM) EBITDA & NET PROFIT ($MM) ▪ Continued revenue growth in H1 2024 across business segments. ▪ Strong
Slide 10: Integrated Logistics: Growth Highlights
ADNOC ADNOC Classification:Public Classification: Public Integrated Logistics: Growth Highlights Continue to deliver growth across key activities Integrated Logistics: Number of Vessels and Utilization Rate Number of Jack-Up Barges Number of Vessels ▪ Fleet 100% contracted Utilization Rate ▪ Continu
Slide 11: Integrated Logistics: Operational Highlights
ADNOC ADNOC Classification:Public Classification: Public Integrated Logistics: Operational Highlights Strong growth across Integrated Logistics operational activities Material Handling Volume (KMT1) DIESEL SALES VOLUME (MIG) ILSP2 NON-ILSP ▪ Higher ILSP2 volumes ▪ Higher diesel sales in H1 24 compar
Slide 12: Integrated Logistics – Financials
ADNOC ADNOC Classification:Public Classification: Public Integrated Logistics – Financials Strong revenue and profitability growth driven by expansion in overall activity levels REVENUE ($MM) EBITDA ($MM) ▪ Robust revenue growth Margin Margin 1,132 fueled by continued ▪ Higher revenues 587 strong bu
Slide 13: Shipping: Benchmark TCE rates
ADNOC ADNOC Classification:Public Classification: Public Shipping : Benchmark TCE rates TANKERS (PRODUCT) Tanker Orderbook as % fleet 100,000 50.00 80,000 40.00 60,000 30.00 40,000 20.00 20,000 10.00 0 0.00 TANKERS (CRUDE) Tanker Supply & Demand Balance (Crude) - % 280,000 10.0 7.6 5.1 4.1 3.9 3.9 5
Slide 14: Shipping: Operational Highlights
ADNOC ADNOC Classification:Public Classification: Public Shipping: Operational Highlights Continue to deliver strong growth in returns as demand outpaces supply NUMBER OF SHIPPING VESSELS NUMBER OF CHARTERED-IN VESSELS TIME CHARTER EQUIVALENT (USD) No. of owned vessels Utilization rate 6a >95% >95%
Slide 15: Shipping - Financials
ADNOC ADNOC Classification:Public Classification: Public Shipping - Financials Strong charter rates in Tankers and Dry-bulk, along with the expansion of the VLCC fleet, drove significant revenue growth, resulting in higher EBITDA and an improved Net Profit. REVENUE ($MM) EBITDA ($MM) 268 519 ▪ Expan
Slide 16: Marine Services
ADNOC ADNOC Classification:Public Classification: Public Marine Services Exceptional EBITDA growth in H1 2024 driven by new Marine Terminal Operations contract REVENUE ($MM) EBITDA ($MM) ▪ H1 24 revenue Margin Margin ▪ Strong EBITDA growth 47 88 89 and margin expansion 45 increased driven by 20% 40%
Slide 17: Cash Flow Profile
ADNOC ADNOC Classification:Public Classification: Public Cash Flow Profile Continued strong free cash flows boost financial strength for future expansion FREE CASH FLOW EVOLUTION ($MM) COMMENTARY CASHFLOW ▪ Strong free cash flow driven by strong growth in core businesses and profitability. ▪ Value a
Slide 18: Sustainability Strategy: abatement opportunities and case studies
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 19: Segmental Medium-term (2024-28) Outlook
ADNOC ADNOC Classification:Public Classification: Public Segmental Medium-term (2024-28) Outlook INTEGRATED LOGISTICS SHIPPING MARINE SERVICES Revenue Revenue Revenue 2024 : ▪ Mid-40%s YoY growth. 2024: ▪ Low to mid teens YoY growth 2024 : ▪ Mid single digit YoY growth ▪ Despite Q1 weather delays &
Slide 20: Group Medium Term Outlook – Update
ADNOC ADNOC Classification:Public Classification: Public Group Medium Term Outlook – Update 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 ▪ Low to mid 30
Slide 21: Closing Remarks
ADNOC ADNOC Classification:Public Classification: Public Closing Remarks STRONG COMMITTED STRONG GROWTH CONTINUED TO ATTRACTIVE EBITDA STRATEGY EARNINGS SHAREHOLDER MARGIN EXECUTION GROWTH S RETURNS 21
Slide 22: Appendix
APPENDIX ADNOC Logistics & Services HIGHLY RESTRICTED
Slide 23: 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 24: 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 25: 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 26: Thank You
THANK YOU www.adnocls.ae IR@adnocls.ae ADNOC Logistics & Services HIGHLY RESTRICTED
ADNOC Logistics & Services — H1 2024 Earnings Presentation on 6ix