ADNOC L&S Acquires Navig8 To Boost Global Maritime Logistics And Earnings

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  • ADNOC Logistics and Services Plc (ADNOC L&S) has agreed to acquire Navig8, a global shipping pool operator, for $1.04 billion.
  • This acquisition, effective January 1, 2024, will significantly expand ADNOC L&S’s global footprint with Navig8’s presence in 15 cities across five continents and a fleet of 32 modern tankers.
  • The deal is expected to boost ADNOC L&S’s earnings per share by at least 20% in the first year and generate over $100 million in annual cost synergies.
  • This acquisition aligns with ADNOC L&S’s strategic growth plan and follows its record-breaking IPO in 2023.

Abu Dhabi, UAE – June 3, 2024: ADNOC Logistics and Services Plc (“ADNOC L&S”) announced an agreement to acquire Navig8 TopCo Holdings Inc. (“Navig8”), significantly expanding its global presence in energy maritime logistics. The acquisition positions ADNOC L&S as a global leader in the industry, leveraging Navig8’s established presence in 15 cities across five continents.

Financial and Strategic Highlights

  • Agreement Terms: ADNOC L&S will acquire 80% of Navig8 for $1.04 billion (AED3.8 billion) with economic ownership effective from January 1, 2024.
  • The remaining 20% ownership will be acquired in 2027 for a deferred consideration of $335 million to $450 million (AED1.2 billion to AED1.7 billion).
  • Immediate Value Accretion: The acquisition is immediately value accretive, projected to boost ADNOC L&S earnings per share by at least 20% in the first full year. Navig8 delivered an EBITDA of approximately $400 million in 2023.
  • Cost Synergies: Significant value through cost optimization and synergies is anticipated, targeting over $100 million in annual savings by optimizing technical management costs and bunker spend.
  • Global Expansion: Navig8’s global footprint and fleet of 32 modern tankers will enhance ADNOC L&S’s international profile and expand its blue-chip customer base.

Comments from Leadership

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S: “This value accretive acquisition marks another major milestone as we deliver on our transformational growth strategy. The addition of Navig8’s presence in 15 international cities, a fleet of tankers, and world-class services will expand our geographical footprint and service offering, cementing our position as a leading global energy maritime logistics and services company.”

Nicolas Busch, CEO of Navig8: “Navig8 is excited by ADNOC L&S’s investment into the company, which is a great credit to the hard work and dedication of the Navig8 global team over the last 17 years. This partnership brings together their extensive knowledge of energy markets with Navig8’s unique presence in the maritime sector, enhancing the service and value we deliver to our customers.”

Strategic Growth and Future Prospects

  • Enhanced Capabilities: The acquisition will expand ADNOC L&S’s service offerings to include pooling, commercial management, bunker trading, technical management, and ESG-focused digital solutions.
  • Operational Continuity: Navig8’s current management team will continue to operate the business under the existing Navig8 brand, ensuring continued strength in business performance.
  • Accelerated Investment: ADNOC L&S is progressing towards its strategic growth investment target, aiming to invest over $5 billion in energy-related maritime logistics. The company reported strong Q1 2024 financial results, with a 34% increase in net profit and a 42% increase in revenues year-on-year.

About ADNOC Logistics & Services Plc

ADNOC Logistics & Services Plc, listed on the Abu Dhabi Securities Exchange (ADX symbol ADNOCLS / ISIN AEE01268A239), is a global energy maritime logistics company based in Abu Dhabi. Through its three business units—integrated logistics, shipping, and marine services—ADNOC L&S serves more than 100 customers in over 50 countries.

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Source: ADNOC

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