ADNOC L&S Reports Record Q2 and H1 2026 Results, Raises Full-Year Guidance

Abu Dhabi, The Gulf Observer: ADNOC Logistics and Services plc (ADNOC L&S) has reported record financial results for the second quarter and first half of 2026, exceeding market expectations and demonstrating strong operational performance, supported by robust demand for services facilitating the delivery of energy from the UAE to global markets.

The company reported Q2 2026 revenue of US$2.584 billion (AED9.49 billion), representing a 98 percent increase compared with the same period last year. EBITDA surged 176 percent year-on-year to US$1.106 billion (AED4.063 billion), while net profit rose 303 percent to US$951 million (AED3.491 billion).

For the first half of 2026, ADNOC L&S recorded revenue of US$3.667 billion (AED13.466 billion), up 46 percent year-on-year. EBITDA increased 98 percent to US$1.475 billion (AED5.416 billion), with an EBITDA margin of 40 percent, an 11-percentage-point improvement over the previous year. Net profit rose 179 percent to US$1.173 billion (AED4.308 billion).

The company has raised its full-year 2026 earnings guidance for the third time, reflecting sustained strong performance, particularly in its shipping business.

ADNOC L&S said its diversified business model, global operating footprint and favorable shipping market rates enabled it to achieve exceptional profitability and operating free cash flow during the first half of the year. The company continues to strengthen its role as a key enabler of ADNOC Group’s global operations, providing the scale, reliability and flexibility needed to meet growing international demand.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said strong fundamentals in the shipping market, disciplined execution and the company’s ability to respond rapidly to volatile market conditions had supported exceptional earnings and cash generation during the first half of 2026.

He said the company’s fleet investments would support its global expansion and transformative growth while creating long-term value for shareholders.

ADNOC L&S is implementing a major fleet expansion programme, with vessel acquisitions and newbuild commitments valued at approximately US$2.3 billion year-to-date. The investments form part of total capital expenditure commitments of approximately US$5.7 billion, aimed at expanding the company’s capacity to meet ADNOC Group’s evolving requirements and creating additional earnings potential.

The company said its upgraded full-year 2026 guidance reflects continued strong performance and favorable shipping market fundamentals, while maintaining prudent assumptions regarding market rates for the remainder of the year.

The Offshore Contracting segment outlook remains conservative, with assumptions that material-handling volumes will remain above minimum contracted levels while jack-up barge utilization continues to be affected by regional uncertainty.

ADNOC L&S is also advancing its strategic fleet expansion and modernization programme. The fifth newbuild LNG carrier from Jiangnan Shipyard in China, “Arada,” joined the company’s fleet in March 2026, followed by its sister vessel “Al Taweelah” in April.

In May, during Make it in the Emirates 2026, ADNOC L&S signed a strategic agreement with Emirates Global Aluminium (EGA) to explore opportunities to strengthen supply-chain resilience across the aluminium value chain.

The agreement builds on the companies’ existing cooperation and seeks to expand collaboration in logistics, including transportation, fleet management and infrastructure. It also explores the potential establishment of a joint venture focused on logistics assets, transportation services and integrated supply-chain solutions to support the UAE’s industrial and manufacturing ambitions.

Digital transformation remains another key focus for ADNOC L&S, with the company integrating artificial intelligence-enabled technologies across its operations to improve efficiency, enhance safety and strengthen overall operational performance.

At Make it in the Emirates 2026, the company showcased several technological innovations, including its Integrated Logistics Management System (ILMS), designed to enhance offshore planning and decision-making, and “SeaOwl,” described as the UAE’s first remotely operated landing craft.

The company said its revised 2026 guidance for revenue, EBITDA and net profit incorporates continued strong performance from the shipping segment and assumes sustained support from favorable shipping market conditions. However, it noted that full-year results remain highly dependent on regional dynamics.

The Offshore Contracting segment has benefited from gradual improvements in material-handling volumes under the Integrated Logistics Services Platform (ILSP). The revised outlook anticipates further improvements in ILSP material-handling volumes while maintaining previous assumptions for the jack-up barge fleet.

ADNOC L&S confirmed that its dividend policy remains unchanged and continues to align with its capital allocation framework.

The company also retains significant financial capacity to pursue investments beyond projects already announced.

The Board approved an interim cash dividend of US$85.3 million (AED313.3 million) for Q2 2026, to be distributed according to shareholdings recorded on August 20, 2026.

The interim dividend is consistent with the company’s dividend policy, which targets a progressive annual increase in dividend per share of at least 5 percent per year over the medium term.