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