Adnoc Logistics and Services announced a fourfold increase in its profit for the second quarter as revenue more than doubled, driven by robust performance in its shipping sector despite the uncertain geopolitical climate caused by the Iran conflict.
Net profit for the equity holders of the company for the three months ending in June increased to almost $917 million, up from $229 million in the same timeframe last year, Adnoc L&S reported in a Tuesday filing with the Abu Dhabi Securities Exchange, where its shares are listed.
Quarterly revenue soared to $2.58 billion. The firm has also increased its 2026 financial outlook for the third time due to higher profits.
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Adnoc L&S noted it anticipates revenue to rise in the mid-20 percent range, up from prior guidance of low single-digit growth, while it expects net profit to increase in the high-110 percent range, compared to the high 60 percent growth projected earlier. The board of the company also sanctioned a temporary cash dividend of $85.3 million for the June quarter, distributed according to 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,” according to Abdulkareem Al Masabi, chief executive of Adnoc L&S.
“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.”
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In the initial six months of 2026, Adnoc L&S's profit attributable to equity holders jumped almost 174 percent annually to $1.1 billion, while revenue increased by 46 percent year on year to reach $3.6 billion.
Revenue from the shipping division for the first half rose 132 percent year-over-year to $2.4 billion, while net profit surged by 693 percent to $997 million, fueled by expanded services for transporting energy from the UAE globally, a worldwide rise in charter rates, and heightened chartering activity. Earnings were also bolstered by contributions from extra vessels provided to the company over the past year. Integrated logistics revenue for the first half dropped 20 percent year-over-year, while services revenue increased by 14 percent to $189 million.
Adnoc L&S is still growing its fleet as part of a $5.7 billion capital expenditure program, with year-to-date vessel purchases and new builds amounting to approximately $2.3 billion. This week, the firm announced it has purchased 11 additional vessels for a total of approximately $1.3 billion to enhance its oil and gas shipping capabilities and aid Adnoc's growth in production and trading.
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The agreement encompasses five very large gas carriers (VLGCs) and six very large crude carriers (VLCCs).
The previous month, it also finalized a $900 million agreement for four new liquefied natural gas ships. The vessels, expected to be delivered in 2029, will be built at Jiangnan Shipyard in Shanghai, China.
The UAE, which left OPEC this year to achieve its goal of increasing production capacity, is making significant investments in the hydrocarbons industry. In November, Adnoc's board sanctioned capital expenditures of Dh551 billion ($150 billion) for the 2026-2030 timeframe to support the company's growth and operations, with $20 billion designated specifically for gas.