ADNOC Logistics & Services (ADNOC L&S), a leading energy maritime logistics company, has announced its acquisition of Navig8, an international shipping pool operator and commercial management company. The strategic move significantly enhances ADNOC L&S’s global presence, leveraging Navig8’s operations in 15 cities across five continents and its modern fleet of 32 tankers.
With Navig8’s extensive global footprint and fleet, ADNOC L&S will significantly enhance its international profile and expand its blue-chip customer base.
Financial and strategic acquisition
Under the terms of the agreement, ADNOC L&S will acquire 80% of Navig8 for $1.04 billion with the transfer of economic ownership effective from January 1, 2024.
The remaining 20% will be acquired in 2027 for a deferred consideration of $335 million to $450 million.
The acquisition is immediately value accretive, aligning with ADNOC L&S’s transformational growth strategy.
The first full year of investment is projected to increase earnings per share by at least 20%.
In 2023, Navig8 delivered an EBITDA of over $400 million, representing 44% of ADNOC L&S’s EBITDA for the same period.
ADNOC L&S aims to unlock significant value through cost-saving synergies, targeting over $100 million in annual savings by optimising technical management costs and bunker spend.
The acquisition will diversify ADNOC L&S’s service offerings to include pooling, commercial management, bunker trading, technical management, and ESG-focused digital solutions.
Strategic growth for ADNOC
The acquisition marks a milestone in ADNOC L&S’s strategy to become a leading global energy maritime logistics provider.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, stated, “This value accretive acquisition reinforces our commitment to transformational growth. The addition of Navig8’s international presence and fleet enhances our service offering and solidifies our position as a global leader in energy maritime logistics.”
Post-acquisition, Navig8’s current management team will continue day-to-day operations, maintaining business performance while leveraging ADNOC L&S’s strengths.
Nicolas Busch, CEO of Navig8, commented, “ADNOC L&S’s investment is a testament to our team’s dedication. Our collaboration will combine ADNOC L&S’s energy market expertise with Navig8’s maritime presence, enhancing value for our customers.”
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One year after its IPO, ADNOC L&S is on track to exceed its $4-5 billion medium-term investment target. With robust Q1 2024 financial results—a 34% year-on-year net profit increase and 42% revenue growth—the company now plans to invest over $5 billion in energy-related maritime logistics.
