ADNOC L&S board approves Dh313.3m interim dividend after record Q2 earnings and strong cash generation.
Dubai: ADNOC Logistics and Services reported a record second-quarter net profit of $951 million (Dh3.49 billion), more than four times the figure recorded a year earlier, prompting the company to raise its full-year 2026 guidance for the third time.
Revenue for the three months ended June surged 98 per cent year-on-year to $2.58 billion (Dh9.49 billion), while EBITDA climbed 176 per cent to $1.11 billion (Dh4.06 billion).
The board also approved an interim cash dividend of $85.3 million (Dh313.3 million) for the second quarter, with the payout to be distributed based on shareholders’ holdings as of the August 20, 2026 record date.
ADNOC L&S said its dividend policy remains unchanged, with a commitment to increase the annual dividend per share progressively by at least 5 per cent over the medium term.
First-half profit reaches $1.17 billion
ADNOC L&S reported a strong first-half performance, with revenue rising 46 per cent year-on-year to $3.67 billion and EBITDA increasing 98 per cent to $1.48 billion. Net profit surged 179 per cent to $1.17 billion (Dh4.31 billion).
Operating free cash flow also climbed 89 per cent to $1.15 billion in the first six months, compared with $604 million during the same period last year.
Shipping was the main contributor to earnings growth, supported by higher charter rates, increased chartering activity and contributions from vessels added to the fleet during the second half of 2025 and the first half of 2026.
“Strong fundamentals in the shipping market, disciplined execution and our ability to respond quickly to volatile market conditions supported exceptional earnings and cash generation, delivering a record first-half result for 2026. Our fleet investments will help accelerate ADNOC L&S’s global expansion and transformative growth while creating long-term value for our shareholders.”
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S
Shipping profit surges 693%
Shipping revenue jumped 132 per cent year-on-year to $2.44 billion, while EBITDA climbed 292 per cent to $1.14 billion. Net profit from the segment surged 693 per cent to $997 million.
The shipping division’s EBITDA margin rose to 47 per cent in the first half, compared with 28 per cent during the same period in 2025.
The strong performance was supported by higher global charter rates, increased chartering activity and contributions from four newbuild LNG carriers, two very large ethane carriers and one Ultramax vessel delivered during the second half of 2025 and the first half of 2026.
First-half net profit also included a $12 million contribution from ADNOC L&S’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 benefit of these items was largely offset by one-off gains recorded in the first half of 2025.
Integrated Logistics earnings decline
Revenue from the Integrated Logistics segment fell 20 per cent year-on-year to $1.04 billion, mainly due to the scheduled run-off of project-related revenue following the completion of the Al Omairah Island project in the fourth quarter of 2025.
EBITDA fell 33 per cent to $283 million, reflecting lower material-handling volumes, higher fleet operating costs and reduced utilisation and day rates across the jack-up barge fleet amid regional geopolitical tensions.
The addition of new jack-up barges and offshore support vessels during the first half helped partially offset the decline.
Services revenue rose 14 per cent year-on-year to $189 million, while EBITDA increased 58 per cent to $52 million. The growth was supported by the transfer of an Integrated Logistics Service Platform warehouse into the Services segment, commercial pooling activity and margins generated by Navig8’s Integr8 bunkering business.
2026 guidance raised for third time
ADNOC L&S has raised its full-year 2026 guidance for the third time, now expecting revenue to grow at a mid-20 per cent rate, compared with its previous forecast of low single-digit growth.
EBITDA is now projected to increase at a mid-60 per cent rate, up from the earlier high-20 per cent forecast. Net profit growth is expected at a high-110 per cent rate, compared with the previous high-60 per cent guidance.
The biggest upgrade came from the shipping segment. Full-year shipping revenue is now expected to grow at a mid-80 per cent rate, compared with the previous mid-to-high-teens forecast.
Shipping EBITDA is projected to increase at a low-190 per cent rate, significantly above the earlier mid-to-high-50 per cent guidance.
The company said its revised outlook is based on continued strength in global shipping markets, although full-year performance remains highly dependent on regional developments.
Fleet investment reaches $2.3 billion
ADNOC L&S has committed around $2.3 billion to vessel acquisitions and newbuilds so far this year, as part of total capital expenditure commitments of $5.7 billion.
The LNG carrier Arada joined the company’s fleet in March, followed by its sister vessel Al Taweelah in April.
The company said its fleet expansion will strengthen its ability to meet the requirements of the ADNOC Group while increasing earnings capacity and supporting future growth.
ADNOC L&S continues to target a medium-term net debt-to-EBITDA ratio of 2.0 to 2.5 times and said it has sufficient financial capacity to pursue investments beyond those already announced.
