ADNOC L&S acquires 80% stake in Navig8 for $1.04bn

ADNOC Logistics and Services (ADNOC L&S) announced on June 3 an agreement to acquire an 80% stake in Navig8 TopCo Holdings for $1.04bn. The remaining 20% ownership will be acquired in 2027 for a deferred consideration of $335mn to $450mn.

Navig8 is an international shipping pool operator and commercial management company with an owned fleet of 32 tankers and a presence in 15 cities across five continents.

ADNOC L&S stated that the acquisition would be immediately value accretive. The first full year of investment is projected to boost earnings per share by at least 20% for ADNOC L&S shareholders. In 2023, Navig8 delivered over $400mn in EBITDA, equivalent to 44% of ADNOC L&S’s EBITDA in the same period.

At the time of its public listing last year, ADNOC L&S committed to investing $4-5bn over the medium term. Following a strong financial performance in Q1 2024 and an upgrade in earnings outlook guidance, the company revised its growth guidance upwards, intending to invest over $5bn in energy-related maritime logistics over the medium term.

In Q1 2024, the company reported a 34% year-over-year increase in net profit and a 42% increase in revenues. ADNOC L&S, listed on the Abu Dhabi Securities Exchange, is a global energy maritime logistics company based in Abu Dhabi.