ADNOC Logistics and Services Reports Record Q2 and H1 2026 Results as Shipping Growth Drives Earnings
ADNOC Logistics and Services plc (ADNOC L&S), listed on the Abu Dhabi Securities Exchange under the symbol ADNOCLS, has reported a record financial performance for the second quarter and first half of 2026, highlighting the strength of its diversified logistics and shipping operations and its growing role in supporting the global delivery of energy from the United Arab Emirates.
The company delivered substantial year-on-year growth across revenue, EBITDA and net profit during the second quarter, while its first-half results were also significantly ahead of the previous year. Strong shipping market conditions, higher charter rates, increased activity, fleet expansion and additional services supporting ADNOC Group operations were among the main factors behind the company’s performance.
ADNOC L&S reported Q2 2026 revenue of US$2.584 billion, equivalent to AED 9.490 billion, representing a 98% increase compared with the same period a year earlier. EBITDA climbed 176% year-on-year to US$1.106 billion, or AED 4.063 billion. Net profit increased by an even more significant 303% to US$951 million, equivalent to AED 3.491 billion.
The strong quarterly performance contributed to a robust first-half result. For the six months ended June 2026, revenue increased 46% year-on-year to US$3.667 billion, or AED 13.466 billion. EBITDA rose 98% to US$1.475 billion, or AED 5.416 billion, with the EBITDA margin reaching 40%, an improvement of 11 percentage points from the first half of 2025.
Net profit for H1 2026 reached US$1.173 billion, or AED 4.308 billion, marking a 179% increase compared with the previous year.
The results have prompted ADNOC L&S to raise its full-year 2026 earnings guidance for the third time. The latest upgrade reflects the company’s strong performance during the first half, continued support for ADNOC Group’s expanding international operations and favorable fundamentals across global shipping markets.
Strong Shipping Performance Drives Growth
Shipping was the principal contributor to ADNOC L&S’ exceptional first-half performance. The segment benefited from a combination of higher market charter rates, increased chartering activity, additional services supporting the movement of energy from the UAE to international markets and contributions from newly delivered vessels.
Shipping revenue increased 132% year-on-year to US$2.438 billion, equivalent to AED 8.952 billion. EBITDA surged 292% to US$1.140 billion, or AED 4.186 billion, while net profit rose 693% to US$997 million, or AED 3.661 billion.
The sharp increase in profitability reflects the favorable combination of market conditions and the company’s growing fleet. Four newbuild LNG carriers, two very large ethane carriers and one Ultramax vessel contributed to the results after being delivered during the second half of 2025 and the first half of 2026.
The performance also lifted the shipping segment’s EBITDA margin to 47%, compared with 28% in H1 2025. This improvement demonstrates the significant earnings potential created by ADNOC L&S’ fleet expansion strategy while also highlighting the company’s ability to capture attractive market opportunities.
The first-half net profit also included a US$12 million, or AED 46 million, contribution from ADNOC L&S’ joint venture with AW Shipping. In addition, the company recorded a US$27 million, equivalent to AED 99 million, capital gain uplift following the favorable sale of the VLCC Leicester in January.
Although these items supported the 2026 results, their effect on year-on-year growth was largely offset by one-off gains recorded during the first half of 2025.
Expanding Fleet Capacity
ADNOC L&S is using its strong financial performance to accelerate investment in its fleet and expand its ability to support ADNOC Group’s evolving logistics and energy transportation requirements.
The company has committed approximately US$2.3 billion to vessel acquisitions and newbuild projects so far in 2026. These investments form part of a broader US$5.7 billion capital expenditure commitment designed to increase fleet capacity, modernize the company’s assets and create additional earnings opportunities.
The strategy is intended to provide ADNOC L&S with greater scale and flexibility while strengthening its ability to respond to changing global energy transportation requirements.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said the company’s first-half performance was supported by strong shipping fundamentals, disciplined execution and the ability to respond rapidly to changing market conditions.
According to Al Masabi, the company’s fleet investments will support further global expansion and transformative growth while creating long-term value for shareholders.
The company’s new vessels are expected to play an increasingly important role as global energy markets evolve and ADNOC Group continues expanding its international footprint. Modern LNG carriers, VLECs and other specialized vessels provide ADNOC L&S with the capacity to participate in a broader range of energy transportation activities.
Integrated Logistics Faces Market and Project Pressures
While shipping delivered exceptional growth, ADNOC L&S’ Integrated Logistics segment experienced a more challenging first half.
Revenue declined 20% year-on-year to US$1.040 billion, or AED 3.820 billion. The decline was primarily associated with the scheduled run-off of project-related revenue following completion of the Al Omairah Island project in the fourth quarter of 2025.
EBITDA decreased 33% year-on-year to US$283 million, equivalent to AED 1.040 billion.
The segment’s performance was affected by lower material-handling volumes, increased operating expenditure across fleets, lower asset utilization and reduced day rates for jack-up barges. Regional geopolitical uncertainty also influenced market conditions and fleet utilization.
Nevertheless, ADNOC L&S was able to partially offset these pressures through additional revenue generated by new jack-up barges and offshore support vessels added to its fleet during the first half of the year.
The development demonstrates the importance of ADNOC L&S’ diversified operating model. Although some individual business lines experienced pressure, strong performance elsewhere in the portfolio helped support overall earnings and cash generation.
The company continues to monitor regional conditions while maintaining a prudent outlook for its offshore contracting activities. Its guidance assumes that material-handling volumes remain above minimum contracted levels, while jack-up barge utilization continues to be affected by regional uncertainty.
Services Segment Records Stronger Earnings
ADNOC L&S’ Services segment delivered another area of positive growth during the first half of 2026.
Revenue increased 14% year-on-year to US$189 million, or AED 694 million. EBITDA grew 58% to US$52 million, equivalent to AED 191 million.
The segment benefited from the contribution of an Integrated Logistics Service Platform warehouse that was transferred from the Integrated Logistics segment. Commercial pooling activities also contributed to performance, while Integr8, the bunkering business operated by ADNOC L&S subsidiary Navig8, delivered strong margins.
However, some activities experienced lower volumes during the period. Petroleum port operations and activity at the Borouge Container Terminal declined compared with the first half of 2025.
Despite these reductions, the Services segment continued to contribute to ADNOC L&S’ broader strategy of developing integrated logistics, maritime and energy-related services.
Strategic Partnership with Emirates Global Aluminium
ADNOC L&S also continued to strengthen its strategic position within the UAE’s industrial ecosystem.
During Make it in the Emirates 2026 in May, the company signed a strategic agreement with Emirates Global Aluminium (EGA) to explore opportunities for strengthening supply chain resilience across the aluminum value chain.
The agreement builds on the existing relationship between the two companies and could expand collaboration across logistics, transportation, fleet management and infrastructure.
The parties are also exploring the potential creation of a joint venture focused on logistics assets, transportation services and integrated supply chain solutions.
Such cooperation could support the UAE’s broader industrialization objectives by improving the efficiency and resilience of supply chains supporting domestic manufacturing.
For ADNOC L&S, the agreement represents an opportunity to broaden its customer base and apply its logistics capabilities beyond traditional energy transportation activities. It also supports the company’s ambition to become a larger provider of integrated logistics solutions across industrial sectors.
New LNG Carriers Strengthen Fleet
ADNOC L&S’ fleet modernization program continued to progress during 2026.
The LNG carrier Arada, the fifth newbuild LNG carrier from Jiangnan Shipyard in China, joined the fleet in March 2026. Its sister vessel, Al Taweelah, followed in April.
The arrival of these vessels further strengthens the company’s LNG transportation capabilities and increases its ability to support the growing international movement of natural gas.
The newbuild program is a central component of ADNOC L&S’ long-term growth strategy. By investing in modern vessels, the company can expand capacity while improving operational flexibility and positioning itself to participate in future energy transportation opportunities.
The fleet expansion also aligns with ADNOC Group’s wider international growth strategy, enabling ADNOC L&S to provide transportation and logistics services across an increasingly global network.
Accelerating Digital Transformation and AI Adoption
Technology and digitalization are becoming increasingly important elements of ADNOC L&S’ strategy.
The company is embedding artificial intelligence-enabled technologies throughout its operations with the objective of improving efficiency, enhancing safety and strengthening operational decision-making.
At Make it in the Emirates 2026, ADNOC L&S showcased several technology initiatives, including its Integrated Logistics Management System (ILMS). The platform is designed to support more effective offshore planning and improve decision-making by providing greater visibility into logistics operations.
The company also highlighted SeaOwl, described as the UAE’s first remotely operated landing craft. The technology demonstrates how automation and remote operations can be integrated into maritime and offshore logistics activities.
The adoption of AI, automation and digital management platforms is expected to become increasingly important as ADNOC L&S expands its fleet and operational footprint. Digital tools can help operators optimize vessel utilization, improve planning, monitor assets and respond more rapidly to changing operational conditions.
Third Guidance Upgrade Highlights Confidence
ADNOC L&S’ decision to increase its full-year 2026 earnings guidance for the third time underlines management’s confidence in the company’s financial outlook.
The revised guidance reflects strong first-half earnings, continued demand associated with ADNOC Group’s international operations and favorable shipping market conditions. At the same time, the company has maintained prudent assumptions regarding market rates for the remainder of the year.
The balanced outlook is particularly important given the uncertainty surrounding regional geopolitical conditions and their potential impact on offshore operations.
ADNOC L&S expects its diversified portfolio to provide resilience as market conditions change. Shipping is currently providing significant earnings momentum, while investments in integrated logistics, offshore assets, digital technologies and specialized services are intended to create additional sources of growth over the longer term.
Building a Global Logistics Platform
The record H1 2026 results mark an important stage in ADNOC L&S’ transformation from a primarily UAE-focused logistics provider into a global energy maritime and logistics company.
Its growing fleet, international operations, diversified services and technology investments are allowing the company to participate in a broader range of global supply chains.
The company’s US$5.7 billion capital expenditure commitment demonstrates the scale of its ambitions. The approximately US$2.3 billion in vessel acquisitions and newbuild commitments already made during 2026 further reinforce the pace at which the company is expanding its asset base.
At the same time, partnerships such as the agreement with EGA demonstrate that ADNOC L&S is seeking opportunities outside traditional energy transportation, particularly in areas where integrated logistics capabilities can support the UAE’s industrial development.
The combination of fleet growth, technology adoption and strategic partnerships could provide ADNOC L&S with additional avenues for sustainable long-term expansion.
ADNOC Logistics and Services enters the second half of 2026 with strong momentum following record quarterly and first-half results. The company’s third upgrade to its full-year earnings guidance reflects the strength of its current performance and the opportunities created by favorable shipping fundamentals.
Shipping is expected to remain a major earnings driver, supported by expanded fleet capacity, higher chartering activity and the contribution of newly delivered vessels. Meanwhile, the company continues to manage challenges affecting offshore contracting and integrated logistics, including regional uncertainty and changes in project-related activity.
With billions of dollars committed to fleet expansion, growing international operations and increased investment in AI and digital technologies, ADNOC L&S is positioning itself for the next stage of its development.
The company’s performance in the first half of 2026 demonstrates the benefits of combining a diversified business model with strategic fleet investment and strong links to ADNOC Group’s global energy operations. As the company continues expanding its maritime and logistics capabilities, its role as a critical enabler of energy supply chains from the UAE to international markets is expected to become increasingly significant.
Source link: https://adnocls.ae/