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One of the Middle East’s leading shipowners and operators, ADNOC Logistics and Services, has taken a major step towards expanding its fleet with the acquisition of Navig8, an international shipping pool operator and commercial management company with an owned fleet of 32 tankers.
The agreement, which is subject to the usual regulatory approvals, will see ADNOC L&S acquire 80% of Navig8 for US $1.04 billion (AED3.8 billion) now, and the remaining 20% ownership in 2027 for between US $335 million and $450 million (AED1.2 billion to AED1.7 billion) in 2027.
The first full year of investment is projected to boost earnings per share by at least 20% for ADNOC L&S shareholders. Moreover, Navig8 delivered over $400 million (AED1.5 billion) of profits on an EBITDA basis in 2023, equivalent to 44% of ADNOC L&S’ EBITDA in the same period. ADNOC L&S says it further plans to unlock significant value through cost savings achieved by operational synergies, including optimising technical management costs and bunker spend.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, describes the acquisition as another major milestone in the company’s transformational growth strategy. “The addition of Navig8’s presence in 15 international cities, its 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,” he says.
Following the completion of the acquisition, the current Navig8 management team will continue to operate the business on a day-to-day basis, while maintaining operations under the existing Navig8 brand.
