Adnoc Logistics and Services (Adnoc L&S) reported record second-quarter and first-half results for 2026, with strong shipping performance, higher market rates and growing demand for services supporting Adnoc Group’s global operations driving a sharp increase in revenue and profits.
The company said second-quarter revenue reached $2.584
billion (AED9.49bn), an increase of 98 per cent year-on-year.
EBITDA surged 176 per cent to $1.106bn, while net profit
jumped 303 per cent to $951 million.
For the first half, revenue rose 46 per cent year-on-year to
$3.667bn.
EBITDA increased 98 per cent to $1.475bn, with the EBITDA
margin reaching 40 per cent, 11 percentage points higher than the same period
last year.
Net profit climbed 179 per cent to $1.173bn.
The strong performance prompted Adnoc L&S to raise its
full-year 2026 financial guidance for the third time, with the company
upgrading its outlook for revenue, EBITDA and net profit.
The revised guidance reflects continued strength in its
shipping business, favourable market conditions and its growing role in
supporting Adnoc Group.
The company said its diversified business model, global
operations and elevated shipping rates supported exceptional profitability and
operating free cash flow during the first half.
However, it noted that full-year performance remains
dependent on regional market dynamics.
Adnoc L&S is also pursuing an extensive fleet expansion
and modernisation programme, with vessel acquisitions and newbuild commitments
worth approximately $2.3bn made so far this year.
These form part of a broader $5.7bn capital expenditure
programme designed to expand the company’s capacity, meet Adnoc Group’s
evolving requirements and create additional earnings potential.
Two new LNG carriers joined the fleet during the first half.
The fifth newbuild LNG carrier from Jiangnan Shipyard, Arada,
entered service in March, followed by its sister vessel, Al Taweelah, in
April.
The company is also expanding strategic partnerships to
strengthen supply chains in the UAE.
During Make it in the Emirates 2026 in May, Adnoc L&S
signed an agreement with Emirates Global Aluminium to explore wider cooperation
across logistics, transportation, fleet management and infrastructure.
The agreement also includes the potential creation of a
joint venture focused on logistics assets, transportation services and
integrated supply chain solutions, supporting the UAE’s industrial and
manufacturing ambitions.
Digital transformation remains another key area of
development.
Adnoc L&S is deploying artificial intelligence-enabled
technologies across its operations to improve efficiency, safety and
decision-making.
At Make it in the Emirates, the company showcased its
Integrated Logistics Management System, which supports offshore planning, as
well as SeaOwl, described as the UAE’s first remotely operated landing craft.
In its offshore contracting business, Adnoc L&S said
material-handling volumes within its Integrated Logistics Services Platform
have shown gradual improvement.
Its guidance assumes further improvements in these volumes,
while expectations for the jack-up barge fleet remain unchanged amid regional
uncertainty.
The company said it retains significant financial capacity
to pursue investments beyond projects already announced.
The board has also approved an interim cash dividend of
$85.3m (AED313.3m) for the second quarter, with shareholders on the record date
of August 20, 2026, eligible for the distribution.
The dividend remains aligned with Adnoc L&S’s policy of
increasing annual dividend per share progressively by at least 5 per cent over
the medium term.
Abdulkareem Al Masabi, CEO of Adnoc L&S, said: “Strong
fundamentals in the shipping market, our disciplined execution, and our ability
to quickly respond to volatile market conditions, supported exceptional
earnings and cash generation and a record result for the first half of 2026.
Our fleet investments will enable us to accelerate the global expansion and
transformative growth at Adnoc L&S as we create long-term value for our
shareholders.” - TradeArabia News Service
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