Logistics

Adnoc L&S buys tanker operator Navig8 for $1.5bn

By Pramod Kumar

June 3, 2024, 8:05 AM

An oil tanker in Fujairah Port, UAE. Adnoc L&S will acquire the remaining 20% stake of Navig8 in 2027 for a deferred consideration of AED1.2 billion to AED1.7 billion

A subsidiary of UAE state oil major Abu Dhabi National Oil Company (Adnoc) has finalised an agreement to fully acquire Navig8 TopCo Holdings, a shipping and tanker operator, for up to AED5.14 billion ($1.5 billion).

As part of the agreement, Adnoc Logistics and Services (Adnoc L&S) will acquire 80 percent of Navig8 for AED3.8 billion, taking over ownership on January 1, 2024.

The Abu Dhabi-listed company will acquire the remaining 20 percent stake in 2027 for a deferred consideration of AED1.2 billion to AED1.7 billion.

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Navig8 owns a fleet of 32 tankers and has a presence in 15 cities across five continents.

The first full year of investment is forecast to boost Adnoc L&S’s earnings per share by at least 20 percent.

Navig8 reported over AED1.5 billion Ebitda in 2023, equivalent to 44 percent of Adnoc L&S’ Ebitda in the same period.

The deal will result in savings of over AED367 million per annum for the Adnoc unit due to cost management and bunker spending.

“The addition of Navig8’s presence in 15 international cities and a fleet of tankers will expand our geographical footprint and service offering,” said Abdulkareem Al Masabi, CEO of Adnoc L&S.

The existing Navig8 management team will continue to operate the business daily.

The deal is subject to customary regulatory approvals.

Last year, Adnoc L&S announced plans to invest $4 billion-$5 billion over the medium term. The company reported a 138 percent increase in net profit year on year in 2023, with a 41 percent annual revenue increase.