Abu Dhabi-listed ADNOC Logistics and Services (ADNOC L&S) posted a net profit of 712 million dirhams ($194 million) in the first quarter of 2024, an increase of 34% from AED 533 million in Q1 2023.

Revenues surged 42% year-on-year (YoY) to AED 3.08 billion, as all business segments performed strongly.

The company intends to invest more than AED 18.4 billion in value-accretive growth over the medium term to meet growing demand in and beyond the UAE.

Annual revenue from the integrated logistics, shipping and marine services segments grew by 55%, 25% and 7%, respectively.

The company’s shareholders have already approved a cash dividend of AED 477 million, or 6.45 fils per share, for the second half of 2023. The dividend payout is expected in May.

In addition, the company aims to increase annual dividends by at least 5% over the medium term, taking the 2023 annualised dividend (AED 955 million) as a base.

ADNOC L&S revised its guidance upwards, projecting revenue growth to reach the low 30% mark in 2024 and single-digit percentage growth YoY over the medium term.

Net income growth is expected in the low 20% range this year.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)