ADNOC Logistics and Services (ADNOC L&S) reported a sharp increase in third-quarter and nine-month earnings for 2026, driven by strong shipping market conditions, higher charter rates and growing contributions from its maritime logistics operations, prompting the company to raise its full-year earnings guidance for the fourth time.

For the third quarter ended September 30, 2026, the company recorded revenue of $3.29 billion (AED12.09 billion), up 149 per cent year-on-year (YoY).

EBITDA increased 187 per cent to $1.09 billion (AED4 billion), while net profit surged 321 per cent to $887 million (AED3.26 billion).

For the first nine months of 2026, revenue rose 82 per cent YoY to $6.96 billion (AED25.55 billion).

EBITDA increased 128 per cent to $2.56 billion (AED9.41 billion), while net profit climbed 227 per cent to $2.06 billion (AED7.57 billion).

The performance was supported by strong demand across international shipping markets, the company's commercial response to evolving market conditions and contributions from its diversified business portfolio.

ADNOC L&S maintains a commercial presence in 19 cities, supporting energy transportation from the UAE to international markets.

Abdulkareem Al Masabi, CEO of ADNOC L&S, said, “Resilience has defined our performance this year, reflecting the strength of our people and our businesses. Our seafarers and employees continue to deliver energy from the UAE to the world, while our global platform and long-term contracts are generating significant value and returns for our shareholders.”

Shipping drives nine-month growth

The Shipping segment was the main contributor to the company's nine-month earnings growth, benefiting from higher global charter rates, continued chartering activity and the addition of new vessels to the fleet.

Revenue from the segment increased 217 per cent YoY to $5.09 billion (AED18.70 billion), while EBITDA surged 362 per cent to $2.02 billion (AED7.43 billion). Net profit climbed 846 per cent to $1.77 billion (AED6.50 billion).

The gains reflected favourable international shipping market fundamentals, alongside contributions from fleet additions delivered during the first nine months of 2026 and the fourth quarter of 2025.

Integrated Logistics faces regional pressures

The Integrated Logistics segment recorded revenue of $1.59 billion (AED5.82 billion), down 19 per cent compared with the same period last year.

The decline reflected the scheduled run-off of project revenues following the completion of the Al Omairah Island project in the fourth quarter of 2025.

EBITDA fell 29 per cent to $448 million (AED1.65 billion), while net profit declined 46 per cent to $230 million (AED843 million).

The company attributed the performance to regional geopolitical developments affecting jack-up barge (JUB) fleet utilisation and day rates, alongside higher operating expenditure. Additional JUBs and new offshore support vessels generated incremental revenue, partially offsetting the pressures. Net profit also reflected an expected credit loss provision related to the JUB fleet.

Services segment records higher profits

The Services segment delivered improved results, with revenue increasing 5 per cent YoY to $281 million (AED1.03 billion).

EBITDA rose 76 per cent to $90 million (AED331 million), while net profit increased 122 per cent to $61 million (AED223 million).

Growth was driven by commercial pooling, stronger bunkering margins at Integr8, the bunkering business of ADNOC L&S subsidiary Navig8, and the reallocation of an Integrated Logistics Service Platform warehouse from Integrated Logistics to Services. These gains were partly offset by lower Petroleum Port Operation volumes.

Raises guidance and expands investment plans

ADNOC L&S raised its full-year 2026 financial guidance for the fourth time, reflecting its performance through October and updated assumptions for November and December.

The company cited continued strength in the Shipping segment and a recovery in material handling volumes within its Integrated Logistics Services Platform to pre-conflict levels. It noted that full-year results remain highly dependent on regional developments.

As of November 12, 2026, ADNOC L&S had committed $7 billion in capital expenditure through 2030, positioning the company to pursue further growth opportunities. It also confirmed a positive medium-term outlook, with detailed guidance parameters under review in light of its latest performance and expansion plans.

The company said it retains significant financial capacity for investments beyond projects already announced.

Q3 dividend approved

The board approved an interim cash dividend of $85.3 million (AED313.3 million) for the third quarter of 2026, with the record date set for November 23, 2026.

The distribution is aligned with the company's dividend policy, which provides for progressive annual increases in dividends per share of at least 5 per cent through 2030.

ADNOC L&S continues to target a medium-term net debt-to-EBITDA ratio of 2.0–2.5 times, while maintaining its focus on investment, operational growth and shareholder returns. -TradeArabia News Service