<a href="https://www.thenationalnews.com/business/2024/05/08/adnoc-ls-profits-surge-34-on-higher-demand-for-logistics-and-shipping/" target="_blank">Adnoc Logistics and Services</a> 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 <a href="https://www.thenationalnews.com/business/energy/2022/07/26/adnocs-logistics-arm-buys-abu-dhabis-zakher-marine-international-to-expand-its-fleet/" target="_blank">maritime logistics unit</a> 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 <a href="https://adxservices.adx.ae/cdn/contentdownload.aspx?doc=3186983">statement</a> 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, <a href="https://www.thenationalnews.com/business/2024/05/08/adnoc-ls-profits-surge-34-on-higher-demand-for-logistics-and-shipping/" target="_blank">L&S said it is acquiring </a>global shipping <a href="https://www.thenationalnews.com/business/energy/adnoc-l-s-acquires-six-crude-carriers-to-expand-global-reach-1.1173171" target="_blank">pool operator</a> 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.