ADNOC L&S expects 'mid-to-high' 40% YOY jump in 2025 shipping revenue

ADNOC L&S expects its 2025 shipping revenue to jump in the "mid-to-high" 40% range from last year, following a 27% increase in 2024 due to higher charter rates for dry bulk and tankers used to carry crude oil, refined products and chemicals.

The addition of four new dual-fuel VLCCs to carry crude in 2023 contributed to the 2024 gain, the company said in a Feb. 12 statement.

The tanker market is expected to start weak in 2025, "followed by anticipated market tightening," while natural gas carriers face a "high number of vessel deliveries and limited additional liquefaction capacity," the company said.

It added that "softness" in LNG rates is expected to abate as new products come online.

Total revenue, which now includes Navig8 and the Integr8 joint-control activity, is also expected to climb "in the mid-to-high" 40% range in 2025, the company said. Revenue in 2024 jumped 29% to $3.55 billion.

Shipping revenue rose 14% last year to $956 million, with tankers contributing $517 million. Fourth-quarter sales from the segment dropped 9% year over year to $226 million.

Revenue from integrated logistics, which includes jackup barges and the Hail & Ghasha gas project, increased 40% in 2024 to $2.28 billion, with fourth-quarter sales little changed year over year at $610 million. Annual revenue in the segment was buoyed by jackup barge fleet growth and the "accelerated Hail & Ghasha project."

Gas self-sufficiency

ADNOC aims to produce 1.5 Bcf/d of gas from the Hail & Ghasha offshore project by the end of this decade, contributing to its plans to become self-sufficient in gas, the company said in October 2023 when announcing its final investment decision on the project.

The 2025 revenue growth for integrated logistics is expected to be in the "low single-digit percentage," led by offshore contracting volume, offshore services and "good progress" in building an artificial G island offshore in the Upper Zakum field, which is now 54% complete, the company said.