Adnoc Logistics and Services reported a fourfold jump in its second-quarter profit as revenue more than doubled on the back of a strong performance of its shipping business despite the uncertain geopolitical situation triggered by the Iran war.
Net profit attributable to the equity holders of the company in the three months to the end of June climbed to nearly $917 million compared to $229 million during the same period last year, Adnoc L&S said in a filing on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue for the quarter surged to $2.58 billion. The company also raised its 2026 financial guidance for the third time amid higher earnings.
Adnoc L&S said it expects revenue to grow at mid-20 per cent from previous guidance of low single-digit, and net profit to grow at high-110 per cent from high 60 per cent growth announced previously.
The company's board also approved an interim cash dividend of $85.3 million for the June quarter, allocated based on shareholdings as of August 20.
“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,” Abdulkareem Al Masabi, chief executive of Adnoc L&S, said.
“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.”
In the first half of 2026, Adnoc L&S's profit attributable to equity holders surged nearly 174 per cent annually to $1.1 billion as revenue rose 46 per cent year on year to $3.6 billion.
Revenue from the shipping segment for the first half increased 132 per cent year on year to $2.4 billion and net profit by 693 per cent to $997 million, driven by additional services provided to deliver energy from the UAE to the world, a global increase in charter rates as well as increased chartering activity.
Contributions from additional vessels delivered to the company in the last one year also supported earnings.
First-half integrated logistics revenue decreased 20 per cent annually, while services revenue rose by 14 per cent to $189 million.
Adnoc L&S continues to expand its fleet as part of a $5.7 billion capex programme, with year-to-date vessel acquisitions and newbuild commitments valued at about $2.3 billion.
This week, the company said it has acquired 11 new vessels for a combined amount of about $1.3 billion to expand its oil and gas shipping capacity, and support Adnoc's growth in production and trading.
The deal includes five very large gas carriers (VLGCs) and six very large crude carriers (VLCCs).
Last month, it also signed a $900 million order for four new liquefied natural gas vessels. The ships, with delivery scheduled for 2029, will be constructed at Jiangnan Shipyard in Shanghai, China.
The UAE, which exited from Opec this year to pursue its ambition to raise its production capacity, is investing heavily in the hydrocarbons sector.
In November, Adnoc's board approved capital investments of Dh551 billion ($150 billion) for the 2026-2030 period to maintain the company's growth and operations, of which $20 billion was earmarked for gas alone.
