ADNOC L&S is an integrated energy logistics company that provides critical and
highly
specialized logistic services across the energy supply chain.
It is a wholly-owned subsidiary and a dedicated logistics arm of ADNOC, with ADNOC Group
companies contributing more than 70% of the company’s total revenues. ADNOC L&S holds
strategic importance within the energy ecosystem of Abu Dhabi and is a critical enabler for
ADNOC. With unique services offered and a high contracted revenue mix (>65%),
ADNOC L&S offers much better visibility on revenues and margins compared to other logistic
companies.
ADNOC L&S heritage dates back to 1975, but it was formally created in 2016 through a combination of ADNOC entities operating in the shipping, logistics and infrastructure services, namely by merging ESNAAD, ADNATCO and ADPPOC.
ADNOC L&S offers a unique investment proposition with value and growth opportunities. A high contracted revenue mix offers better margin and cash flow visibility. With plans to improve the contracted revenue mix further and a renewed focus on value-added services, the EBITDA margins are also expected to improve along with the growth in the revenues. A strong balance sheet with zero net debt and multiple growth drivers makes ADNOC L&S a unique investment opportunity.
ADNOC intends to sell about 15% of the total share capital of the company in the upcoming IPO of ADNOC L&S. This provides a unique opportunity to invest in another IPO of the ADNOC group company. ADNOC L&S has committed dividends of AED 9.7fils/sh. for 9M23 (annualised dividends of AED 12.9 fils/sh.), which is expected to grow 5% annually going forward.
