Adnoc Logistics & Services (Adnoc L&S) reported resilient Q1 2026 results, with EBITDA rising 7 per cent year-on-year to $368 million (AED 1,353 million), driven by its diversified business model and strong global operational scale.

The EBITDA margin expanded to 34 per cent, up 5 percentage points YoY.

Net profit rose 20 per cent YoY to $222 million (AED 816 million). Revenue for the quarter stood at $1,083 million (AED 3,976 million) with the 10 per cent YoY decline reflecting the scheduled run‑off of project revenues following the delivery of Al Omairah Island mega project to Adnoc Offshore in Q4 2025. 

Abdulkareem Al Masabi, CEO of Adnoc L&S, said: “Adnoc Logistics & Services delivered first quarter results growth in a challenging market environment. 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.”

Higher global shipping rates helped offset the impact of disruptions to international shipping through the Strait of Hormuz.

The business continues to benefit from long-term contracted revenue representing approximately 60 per cent of the combined revenue of Adnoc L&S and its AW Shipping joint venture.

This provides strong earnings and cash flow visibility. 

Adnoc L&S has upgraded its full-year 2026 financial guidance, reflecting actual performance through April 2026 and an improved outlook on shipping market fundamentals.

The updated assumptions from May onwards reflect supportive demand-supply dynamics while maintaining a prudent and conservative approach relative to prevailing market rates. Offshore contracting guidance also remains conservative, assuming minimum activity levels amid regional uncertainty.

Adnoc L&S remains focused on disciplined, value accretive investment to support future revenue and cash flow generation.

Early delivery of an additional next‑generation LNG carrier in March 2026 demonstrates continued execution of the company’s growth strategy, enhancing capacity to support long‑term shareholder value and Adnoc’s expanding global energy supply chain.

Strong Segmental Growth for Q1 2026

Shipping: Revenue increased 4 per cent to $512 million (AED 1,882 million) and EBITDA rose 37 per cent YoY to $197 million (AED 722 million). Results were driven by a global increase in charter rates and contributions from new LNG, VLEC and Handysize vessels.

Operational efficiency and strong fleet performance contributed to a YoY rise in the EBITDA margin to 38 per cent from 29 per cent in Q1 2025.

Net profit also reflects the contribution of $6 million (AED 23 million) from the joint venture with AW Shipping and benefited from a $27 million (AED 99 million) capital gain resulting from the favorable sale of the VLCC ‘Leicester’.

This was largely offset by the absence of one‑off gains recognised in the prior‑year period on a contract termination and from the sale of the Medium Gas Carrier ‘Yas’.

Integrated Logistics: Revenue decreased 23 per cent YoY to $481 million (AED 1,768 million) and EBITDA was down 17 per cent YoY to $151 million (AED 554 million), mainly reflecting the scheduled run‑off of project revenues following the delivery of Al Omairah Island in Q4 2025.

Performance was also impacted by lower utilisation and reduced day rates across the fleet of Jack‑Up Barges (JUB) due to regional geopolitical developments.

This was partially mitigated by incremental revenue from three additional JUB and OSV assets.

Services: Revenue increased 5 per cent YoY to $89 million (AED 326 million) with EBITDA up 13 per cent YoY to $20 million (AED 75 million).

Results were supported by the contribution from an Integrated Logistics Service Platform (ILSP) warehouse which was moved from Integrated Logistics to the Services segment. Additional contributions came from Integr8, the bunkering business of Navig8, while Petroleum Port Operations (PPO) and the Borouge Container Terminal (BCT) saw volumes decrease.

Strategic Update

Adnoc L&S continues to execute its strategic fleet expansion and modernisation programme.

In March 2026, ‘Arada’, the fifth new-build LNG carrier from Jiangnan Shipyard in China joined the fleet followed by ‘Al Taweelah’ in April.

These new-build vessels are part of a $1.2 billion order placed in 2022, with five vessels being deployed under long term contracts, from May 2026, to transport LNG produced by Adnoc Gas, supporting the growing global energy demand with enhanced efficiency. Designed to reduce methane emissions by up to 50 per cent compared to

older‑generation vessels, the new carriers support lower-emissions operations, improved efficiency and cost performance.

Adnoc Logistics & Services and Emirates Global Aluminium (EGA), the largest ‘premium aluminium’ producer in the world, have signed a high-level agreement to explore collaboration on supply chain resilience in the aluminium value chain.

The companies aim to strengthen and expand their collaboration on logistics, including transportation, fleet management and infrastructure.

The agreement outlines the potential formation of a joint venture for logistics assets, transportation services and integrated supply chain solutions.

The agreement was signed during their participation at “Make it in the Emirates”, the UAE’s national platform for the promotion of industrial growth, advanced technologies and local manufacturing. -TradeArabia News Service