Adnoc Logistics and Services reported a 303 per cent surge in second-quarter net profit to $951 million (Dh3.49 billion), driven by strong shipping markets, higher chartering activity and additional services supporting energy exports from the UAE.
Second-quarter revenue jumped 98 per cent year-on-year to $2.58 billion, while EBITDA rose 176 per cent to a record $1.11 billion.
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For the first half, revenue increased 46 per cent to $3.67 billion, EBITDA rose 98 per cent to $1.48 billion and net profit climbed 179 per cent to $1.17 billion. The EBITDA margin expanded by 11 percentage points to 40 per cent.
The company raised its full-year earnings guidance for the third time this year, citing continued strength in shipping and resilient operating performance.
Shipping profit surges nearly seven-fold
The shipping division was the main growth driver during the first half, with revenue rising 132 per cent to $2.44 billion.
Shipping EBITDA increased 292 per cent to $1.14 billion, while net profit surged 693 per cent to $997 million.
Adnoc L&S attributed the performance to additional services supporting UAE energy exports, higher global charter rates, increased chartering activity and contributions from newly delivered vessels, including four LNG carriers, two very large ethane carriers and an Ultramax vessel.
Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said strong shipping fundamentals, disciplined execution and the company’s ability to respond quickly to volatile markets supported record earnings and cash generation.
“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,” he said.
$5.7 billion fleet investment programme
Adnoc L&S said vessel acquisitions and newbuild commitments made so far this year total around $2.3 billion, forming part of $5.7 billion in capital expenditure commitments aimed at expanding the fleet and future earnings capacity.
The company continued its fleet expansion with the delivery of the LNG carrier Arada in March and sister vessel Al Taweelah in April.
Integrated logistics revenue declined 20 per cent to $1.04 billion, mainly reflecting the scheduled end of project revenue following completion of the Al Omairah Island project in late 2025.
Services revenue, however, rose 14 per cent to $189 million, with EBITDA up 58 per cent to $52 million.
2026 profit guidance raised sharply
Adnoc L&S now expects full-year revenue to grow in the mid-20 per cent range, compared with its previous forecast for low single-digit growth.
EBITDA is projected to rise in the mid-60 per cent range, while net profit is expected to increase in the high-110 per cent range, up sharply from the previous guidance of high-60 per cent growth.
Shipping revenue is now expected to grow in the mid-80 per cent range, while shipping EBITDA is forecast to rise in the low-190 per cent range.
The board also approved a second-quarter interim cash dividend of $85.3 million, equivalent to Dh313.3 million, with shareholders of record on August 20 eligible for the payout.
The company’s dividend policy targets an annual increase in dividend per share of at least 5 per cent over the medium term.
Source: Khaleej Times