Adnoc Logistics and Services has awarded South Korean shipyards Samsung Heavy Industries and Hanwha Ocean up to Dh9.2 billion ($2.5 billion) in shipbuilding contracts to build liquefied natural gas carriers as part of the company’s fleet expansion plans.
The maritime logistics unit of Abu Dhabi hydrocarbons major Adnoc has awarded firm shipbuilding contracts for the construction of four vessels each with Samsung Heavy and Hanwha, with the option for an additional carrier, Adnoc L&S said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
The ships are expected to be delivered beginning in 2028 and will be time chartered to Adnoc’s group subsidiaries for 20 years to support the growing export volumes of LNG, a lower-carbon transitional fuel.
“The shipbuilding contracts with Samsung Heavy Industries and Hanwha Ocean are major steps forward in our transformational growth strategy, demonstrating Adnoc L&S’ steadfast commitment to value accretive strategic investments,” Capt Abdulkareem Al Masabi, chief executive of Adnoc L&S, said.
The new LNG carriers will take the company’s fleet from the current 14 to at least 22.
Adnoc L&S has so far committed more than 50 per cent of its $4 billion to $5 billion medium-term strategic investment target, which it had announced at the time of listing last year.
The company is looking to invest in value-accretive business opportunities over the medium term as part of its transformational growth agenda.
Earlier this year, the company revised its growth guidance upwards and said it now intends to invest in excess of $5 billion in energy-related maritime logistics to meet growing demand in and beyond the UAE.
In June, L&S said it is acquiring global shipping pool operator Navig8 TopCo Holdings to strengthen its fleet and expand into other markets.
It has taken an 80 per cent stake in Navig8 for $1.04 billion, with ownership taking effect on January 1 this year and will purchase the remaining 20 per cent of Navig8 in 2027 for an additional consideration in the range of $335 million to $450 million, it said in a bourse filing at the time.
The acquisition will allow Adnoc L&S to save more than $100 million each year by reducing technical management and fuel costs.
The deal is Adnoc L&S’ second major acquisition in about two years. In 2022, it acquired ZMI, an Abu Dhabi company that owns and operates offshore support vessels.
Before the acquisition, ZMI, which is currently an independent entity under Adnoc L&S, was the world’s largest owner and operator of self-propelled jack-up barges, with operations in the UAE, Saudi Arabia, Qatar and China.
Adnoc L&S said since its IPO, it has committed $3.9 billion to “organic growth capex”, predominantly against long-term contracts and it remains committed to pursue its growth agenda to expand its fleet size, customer base as well as its geographical footprint.
“These [new] LNG carriers will employ cutting edge technology to increase fuel efficiencies and carbon intensity reductions in line with the company’s sustainability goals and will open new opportunities for customer and geographical expansion while unlocking increased value for our shareholders,” said Capt Al Masabi.
Adnoc L&S currently delivers energy products to more than 100 customers in about 50 countries through its three business units – integrated logistics, shipping and marine services.
The company made its debut on the Abu Dhabi bourse in June last year after parent company Adnoc raised about Dh2.83 billion from the sale of a 19 per cent stake in the subsidiary.
In May, Adnoc L&S reported a 34 per cent increase in its first-quarter profit and raised its revenue forecast for the full year.
In numbers
- Number of children under five will fall from 681 million in 2017 to 401m in 2100
- Over-80s will rise from 141m in 2017 to 866m in 2100
- Nigeria will become the world’s second most populous country with 791m by 2100, behind India
- China will fall dramatically from a peak of 2.4 billion in 2024 to 732 million by 2100
- an average of 2.1 children per woman is required to sustain population growth
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MATCH INFO
Chelsea 4 (Mount 18',Werner 44', Hudson-Odoi 49', Havertz 85')
Morecambe 0
MATCH INFO
Uefa Nations League
League A, Group 4
Spain v England, 10.45pm (UAE)
Results
5pm: Wadi Nagab – Maiden (PA) Dh80,000 (Turf) 1,200m; Winner: Al Falaq, Antonio Fresu (jockey), Ahmed Al Shemaili (trainer)
5.30pm: Wadi Sidr – Handicap (PA) Dh80,000 (T) 1,200m; Winner: AF Majalis, Tadhg O’Shea, Ernst Oertel
6pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m; Winner: AF Fakhama, Fernando Jara, Mohamed Daggash
6.30pm: Wadi Shees – Handicap (PA) Dh80,000 (T) 2,200m; Winner: Mutaqadim, Antonio Fresu, Ibrahim Al Hadhrami
7pm: Arabian Triple Crown Round-1 – Listed (PA) Dh230,000 (T) 1,600m; Winner: Bahar Muscat, Antonio Fresu, Ibrahim Al Hadhrami
7.30pm: Wadi Tayyibah – Maiden (TB) Dh80,000 (T) 1,600m; Winner: Poster Paint, Patrick Cosgrave, Bhupat Seemar
THE DETAILS
Director: Milan Jhaveri
Producer: Emmay Entertainment and T-Series
Cast: John Abraham, Manoj Bajpayee
Rating: 2/5
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Another way to earn air miles
In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.
An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.
“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
