Higher shipping rates helped offset disruptions in the Strait of Hormuz and supported stronger 2026 guidance.
Dubai: ADNOC Logistics and Services (ADNOC L&S) has raised its 2026 earnings guidance after reporting a 20% rise in first-quarter profit, with higher shipping rates and an expanded global operating footprint helping the Abu Dhabi company cushion disruptions to maritime traffic through the Strait of Hormuz.
The company reported a net profit of $222 million (Dh816 million) for the first quarter of 2026.
EBITDA increased by 7% year-on-year to $368 million (Dh1.35 billion), while the EBITDA margin expanded by 5 percentage points to 34%.
Revenue declined 10% to $1.08 billion (Dh3.96 billion), primarily due to the planned wind-down of project revenues following the delivery of the Al Omairah Island mega project to ADNOC Offshore in the fourth quarter of 2025. However, the revenue drop was offset by stronger margins, higher shipping rates, and improved performance across parts of the fleet.
“ADNOC Logistics & Services delivered first-quarter results growth in a challenging market environment,” said Captain Abdulkareem Al Masabi, CEO of ADNOC L&S. “Despite disruption to maritime traffic through the Strait of Hormuz, our diversified business model continued to perform as expected. Our global scale, long-term contracted revenue base, and integrated portfolio underpinned our resilience.”
Long-term contracted revenue continues to provide a key cushion for the business. ADNOC L&S said contracted revenue accounts for around 60% of the combined revenue of ADNOC L&S and its AW Shipping joint venture, offering greater visibility over earnings and cash flow.
Shipping business leads growth
The shipping segment was the strongest performer during the quarter. Revenue increased 4% to $512 million (Dh1.88 billion), while EBITDA jumped 37% to $197 million (Dh723.5 million).
The growth was supported by higher global charter rates and contributions from new LNG, VLEC, and Handysize vessels. Improved fleet performance also boosted the segment’s EBITDA margin to 38%, up from 29% a year earlier.
Net profit in the segment included a $6 million (Dh22.03 million) contribution from the AW Shipping joint venture and a $27 million (Dh99.16 million) capital gain from the sale of the VLCC Leicester. These gains were partly offset by the absence of one-off benefits recorded in the previous year, including a contract termination gain and proceeds from the sale of the medium gas carrier Yas.
Logistics hit by project run-off
Integrated Logistics recorded a 23% decline in revenue to $481 million (Dh1.76 billion), while EBITDA fell 17% to $151 million (Dh554.5 million). The company attributed the drop mainly to the scheduled wind-down of revenues following the delivery of the Al Omairah Island project.
Lower utilisation and reduced day rates in the Jack-Up Barge fleet also impacted performance, with regional geopolitical developments affecting activity levels. However, additional revenue from three new JUB and offshore support vessels helped partially offset the decline.
The Services segment posted steadier growth, with revenue rising 5% to $89 million (Dh326.85 million) and EBITDA increasing 13% to $20 million (Dh73.45 million). The segment benefited from the transfer of an Integrated Logistics Service Platform warehouse from Integrated Logistics to Services, as well as income from Integr8, the bunkering arm of Navig8.
New LNG carriers join the fleet
ADNOC L&S is continuing its fleet expansion programme, with the LNG carriers Arada joining the fleet in March and Al Taweelah in April. Both vessels are part of a $1.2 billion (Dh4.40 billion) order placed in 2022 with Jiangnan Shipyard in China.
Five new-build LNG carriers will be deployed under long-term contracts starting from May 2026 to transport LNG produced by ADNOC Gas. The company said the vessels are designed to cut methane emissions by up to 50% compared with older-generation ships, while also improving efficiency and cost performance.
The company also signed an agreement with Emirates Global Aluminium to explore cooperation on strengthening supply chain resilience across the aluminium value chain. The partnership could expand into logistics assets, transportation services, fleet management, and integrated supply chain solutions.
Guidance raised
ADNOC L&S said it has increased its 2026 guidance for revenue, EBITDA, and net income after incorporating actual performance from the first quarter and April
The company remains cautious on offshore contracting due to regional uncertainty, but said shipping demand and supply fundamentals continue to be supportive. It added that shipping guidance assumptions have been updated from May onward, while still taking a conservative stance compared with current market rates.
ADNOC L&S also reaffirmed its medium-term outlook and its 2027–2029 compound annual growth rate (CAGR) guidance. Capital expenditure guidance remains unchanged, and the company said it retains strong financial capacity for future investments beyond already announced projects.
The FY2026 dividend is expected to total $341 million (Dh1.25 billion), reflecting a planned 5% annual increase from 2026 to 2030. The payout is expected to be made quarterly, subject to approvals.
