ADNOC L&S Q2 profit jumps 303% to record $951 million, raises 2026 guidance again

Dubai: ADNOC Logistics and Services reported a record second-quarter net profit of $951 million, or Dh3.49 billion, after earnings more than quadrupled from a year earlier, prompting the company to raise its full-year 2026 guidance for the third time.

Revenue for the three months ended June rose 98% year-on-year to $2.58 billion, or Dh9.49 billion, while EBITDA increased 176% to $1.11 billion, or Dh4.06 billion.

The board also approved an interim cash dividend of $85.3 million, equivalent to Dh313.3 million, for the second quarter, with the payout allocated according to shareholdings on the August 20, 2026 record date.

ADNOC L&S said its dividend policy remains unchanged and provides for a progressive annual increase in dividend per share of at least 5% over the medium term.

First-half revenue increased 46% to $3.67 billion, while EBITDA rose 98% to $1.48 billion. Net profit climbed 179% to $1.17 billion, equivalent to Dh4.31 billion.

Operating free cash flow reached $1.15 billion in the first six months, up 89% from $604 million in the same period last year.

Shipping was the main driver of earnings growth, supported by higher charter rates, additional chartering activity and contributions from vessels added to the fleet during the second half of 2025 and the first half of 2026.

Shipping revenue increased 132% year-on-year to $2.44 billion, while EBITDA rose 292% to $1.14 billion. Net profit from the segment increased 693% to $997 million.

The shipping EBITDA margin reached 47%, compared with 28% in the first half of 2025.

Results benefited from higher global charter rates, increased chartering activity and contributions from four newbuild LNG carriers, two very large ethane carriers and one Ultramax vessel delivered across the second half of 2025 and first half of 2026.

First-half net profit also included a $12 million contribution from ADNOC L&S' AW Shipping joint venture and a $27 million capital gain from the sale of the VLCC Leicester in January. The company said the year-on-year impact of these items was largely offset by one-off gains recorded during the first half of 2025.

Integrated Logistics revenue fell 20% to $1.04 billion, reflecting the scheduled run-off of project revenue following completion of the Al Omairah Island project in the fourth quarter of 2025.

EBITDA declined 33% to $283 million due to lower material handling volumes, higher fleet operating expenses and lower utilisation and day rates across the jack-up barge fleet amid regional geopolitical conditions.

Additional jack-up barges and offshore support vessels added during the first half helped partially offset the decline.

Services revenue increased 14% to $189 million, while EBITDA rose 58% to $52 million. Contributions came from an Integrated Logistics Service Platform warehouse transferred into the Services segment, commercial pooling activity and margins generated by Navig8's Integr8 bunkering business.

ADNOC L&S now expects full-year revenue to grow by a mid-20% rate, compared with its previous forecast for low single-digit growth.

EBITDA is expected to rise by a mid-60% rate, up from the previous high-20% growth forecast, while net profit is now projected to increase at a high-110% rate compared with the earlier high-60% guidance.

The biggest revision came from shipping, where full-year revenue is now expected to grow by a mid-80% rate compared with the previous mid-to-high-teens forecast. Shipping EBITDA is forecast to rise at a low-190% rate, significantly above the previous mid-to-high-50% projection.

The company said the revised outlook assumes continued support from strong shipping markets, while full-year results remain highly dependent on regional dynamics.

ADNOC L&S has committed about $2.3 billion to vessel acquisitions and newbuilds so far this year as part of $5.7 billion in capital expenditure commitments.

The LNG carrier Arada joined the fleet in March, followed by sister vessel Al Taweelah in April.

The company said its fleet expansion will increase its ability to meet ADNOC Group requirements while adding earnings capacity for future growth.

ADNOC L&S continues to target a medium-term net debt-to-EBITDA ratio of between 2.0 and 2.5 times and said it retains financial capacity for investments beyond projects already announced.