Adnoc L&S posts record net profit of $951m in 2nd quarter

Adnoc Logistics and Services (Adnoc L&S), today reported record second quarter (Q2) and first-half (H1) 2026 results, surpassing market expectations and demonstrating resilience and operational strength underpinned by strong performance from services supporting the delivery of energy from the UAE to the world.

Adnoc L&S delivered Q2 2026 revenue of $2,584 million (Dhs 9,490 million), up 98 per cent year-on-year (YoY).

Ebitda increased 176 per cent YoY to $1,106 million (Dhs4,063 million), while net profit rose 303 per cent YoY to $951 million (Dhs3,491 million).

For H1 2026, revenue increased 46 per cent YoY to $3,667 million (Dhs13,466 million).

Ebitda rose 98 per cent YoY to $1,475 million (Dhs5,416 million), with a margin of 40 per cent, up 11 percentage points YoY, driven by record shipping performance. Net profit increased 179 per cent YoY to $1,173 million (Dhs4,308 million).

The company also raised its 2026 guidance for the third time, reflecting the strong earnings achieved supporting Adnoc Group.

Adnoc L&S’ diversified business model, its global operations, and elevated market rates enabled the company to deliver exceptional profitability and operating free cash flow for the first half of 2026.

The company continues to strengthen its position as a critical enabler of Adnoc Group’s global operations, delivering the scale, reliability, and flexibility required to serve growing international demand.

Captain 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.”

With total vessel acquisitions and newbuild commitments year-to-date valued at approximately $2.3 billion, Adnoc L&S is executing a significant fleet expansion programme as part of $5.7 billion in capex commitments, expanding its ability to support Adnoc Group’s evolving requirements while creating additional earnings capacity for the future.

The company has provided a third upgrade to its full-year 2026 earnings guidance, reflecting continued strong performance.

The improved outlook is supported by our efforts in supporting Adnoc Group and favorable shipping market fundamentals, while remaining grounded in prudent assumptions about market rates for the remainder of the year. Offshore contracting guidance remains conservative, assuming material handling volumes stay above minimum contracted amounts and jack-up barge utilization remains impacted by regional uncertainty.

Adnoc L&S continues to execute its strategic fleet expansion and modernization programme. ‘Arada’, the fifth newbuild LNG carrier from Jiangnan Shipyard in China, joined the fleet in March 2026, followed by sister vessel, ‘Al Taweelah’, in April.

During Make it in the Emirates 2026 in May, Adnoc L&S signed a strategic agreement with Emirates Global Aluminium (EGA), exploring opportunities to strengthen supply chain resilience across the aluminium value chain.

The agreement builds on the companies’ existing relationship and aims to expand collaboration in logistics, including transportation, fleet management and infrastructure. It also outlines the potential establishment of a joint venture focused on logistics assets, transportation services, and integrated supply chain solutions, supporting the UAE’s industrial growth and manufacturing ambitions. As part of its ongoing digital transformation, Adnoc L&S is embedding AI-enabled technologies across its operations to improve efficiency, enhance safety, and strengthen operational performance.

At Make it in the Emirates, the Company showcased key innovations including its Integrated Logistics Management System (ILMS), which supports more effective offshore planning and decision-making, and ‘SeaOwl’, the UAE’s first remotely operated landing craft.

Adnoc L&S has raised its full-year 2026 financial guidance on Revenue, EBITDA and Net Profit, incorporating continued strong shipping performance.

The company is updating the market on the sustained strong performance of its shipping segment.

The revised guidance assumes continued support from strong shipping markets. Full-year results are highly dependent on regional dynamics.

The Offshore Contracting segment has been positively impacted by gradual improvements in material handling volumes in the Integrated Logistics Services Platform (ILSP). Guidance reflects further improvements in ILSP material handling volumes and maintains previous guidance assumptions for our Jack-Up Barge fleet.

WAM