ADNOC L&S profit triples to Dh7.6 billion as global shipping rates surge

Dubai: Higher global shipping rates have helped ADNOC Logistics and Services (ADNOC L&S) more than triple its profit in the first nine months of 2026, even as regional disruptions weighed on parts of its offshore operations.

The Abu Dhabi-listed company's net profit surged 227% to Dh7.57 billion during the nine months ended September 30, while revenue climbed 82% to Dh25.55 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 128% to Dh9.41 billion.

The results highlight the contrasting impact of regional conditions on the company's businesses. Stronger international charter rates have lifted earnings from its shipping fleet, while lower utilisation and daily rental rates have affected its offshore jack-up barges.

ADNOC L&S has now raised its full-year earnings guidance for the fourth time in 2026, citing continued strength in shipping markets and demand for maritime logistics services across ADNOC Group.

Shipping drives profit growth

The shipping division accounted for most of the company's earnings growth, with nine-month revenue rising 217% to Dh18.70 billion.

Net profit from the segment jumped 846% to Dh6.50 billion, supported by higher charter rates, ongoing chartering activity and additional vessels entering the fleet.

Shipping generated approximately 86% of the group's reported nine-month net profit, illustrating how strongly the company's performance now depends on international freight markets.

The contrast was particularly evident in the third quarter, when group revenue rose 149% to Dh12.09 billion and net profit surged 321% to Dh3.26 billion.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “Resilience has defined our performance this year, reflecting the strength of our people and our businesses.” He added that the company's global operations and long-term contracts were generating returns for shareholders.

Offshore operations face pressure

Not all business segments benefited from the stronger shipping market.

Integrated Logistics revenue fell 19% to Dh5.82 billion in the first nine months, partly reflecting the completion of the Al Omairah Island project in late 2025.

The division's net profit dropped 46% to Dh843 million as regional geopolitical conditions affected jack-up barge utilisation and daily rates. Higher operating costs and an expected credit loss provision also weighed on earnings.

The company said offshore material-handling volumes had since returned to pre-conflict levels at its Integrated Logistics Services Platform, providing some improvement in operating conditions.

Meanwhile, the smaller Services division recorded a 122% increase in net profit to Dh223 million, supported by stronger bunkering margins and commercial pooling activities.

Dh25.7 billion committed to expansion

ADNOC L&S said it had committed $7 billion, or approximately Dh25.7 billion, in capital expenditure through 2030 as it expands its fleet and international operations.

The company operates across global maritime markets, supported by a commercial presence in 19 cities.

Its latest earnings forecast incorporates actual performance through October and updated assumptions for November and December. While management expects shipping demand to remain supportive, it said full-year results remain highly dependent on regional conditions.

ADNOC L&S also confirmed that its medium-term financial targets are under review following this year's performance and recently announced expansion plans.

The company's board approved a third-quarter interim cash dividend of Dh313.3 million. Its dividend policy remains unchanged, targeting annual increases of at least 5% per share through 2030. The company also maintained its medium-term target for net debt relative to EBITDA at 2.0 to 2.5 times.