ADNOC L&S Weighs HEA Stake at Valuation of Up to $3 Billion

what happened

ADNOC Logistics & Services, the logistics division of the United Arab Emirates’ state-owned oil company, is negotiating to acquire a substantial holding in HEA Energy, the Wall Street Journal reported, citing people familiar with the discussions. The proposed transaction could value the marine energy-services company at as much as $3 billion. The talks cover either a large minority interest or control of HEA, though they may not result in an agreement.

ADNOC L&S has benefited from strong shipping conditions. Charter rates rose this year after conflict in Iran restricted traffic through the Persian Gulf and increased the cost of moving oil out of the region. The company’s second-quarter net income climbed fourfold from a year earlier to $917 million. In August, it announced the purchase of 11 vessels—five for gas cargoes and six for crude—for approximately $1.3 billion.

ADNOC is pursuing higher oil and gas production after the U.A.E. left OPEC earlier this year. Its gas-production unit said in August that it would invest more than $8 billion to expand capacity. Founded in 2022 and headquartered in Abu Dhabi, HEA operates jack-up barges, accommodation vessels and battery-powered subsea craft. Its operating income rose 128% year over year to $65.2 million in the first half, while revenue more than doubled to about $100 million.

why it matters

A stake would broaden ADNOC L&S’s offshore oil-and-gas services footprint, including in the North Sea and the U.S. The company operates more than 100 vessels, has a market value above $15 billion and is about 80% owned by ADNOC.

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