Hugh Baker, Chief Financial Officer at ADNOC Logistics & Services, joins Johny Fernandez at the NYSE to discuss the company’s outlook and earnings trajectory, underpinned by its long-term contracted revenue base and strong financial position, which continue to support fleet expansion, shareholder dividends, and growth across its diversified business segments. The interview comes during his participation in the Marine Money Conference in New York.
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My next guest brings 35 years of financial leadership to one of the most closely watched names in global shipping.
He's the CFO of Adnock LNS and has a background that runs deep with over a decade as a CFO with some companies listed here at the New York Stock Exchange and also extensive experience across financial planning, reporting treasury, investor.
Relations and M&A.
I want to welcome to the show Mr.
Hugh Baker.
Thank you so much for joining us.
Great to be here.
Adnoc is well known to US investors as a major energy producer.
So for those just getting to know Adnoc L&S, how would you describe the business and its scale today?
So we have a market cap of around $12 billion.
We're 78% owned by Adnoc, and that really contributes to a lot, a lot to our scale, and we are an international logistics and shipping company and we are involved very heavily in the moving of Adnc's energy, but also the whole overall energy transportation of chain.
So let's talk a little bit more about um LNS and it's had a very strong financial growth over the past few years.
What do you think the market still underappreciates about the company's equity story?
I think that the market really understands how diversified we are and how strong we are and how really the quality of our earnings is really something to behold because we have we have over $25 billion of long-term contracted revenue from mainly from our parent company, and that is a base which we can grow.
And it's a base a base of earnings that that gives us enormous stability.
So let's talk about Adnog LNS's balanced, steady shareholder returns with combined investment in fleet expansion and global growth.
Well, we've really, you know, we've got the financial base and the The strong revenue stream to really invest throughout the throughout the cycle but throughout the whole logistics chain so we're investing in ships, we're investing in offshore assets, we're investing in logistics bases, but more importantly, and we're also investing in dividends to our shareholders.
So it's, it's really, you know, we have the ability and the strength to really do all of those things and, and we're still growing and it's it's a, it's a really great story to be part of.
Global shipping has global shipping has.