Adnoc Logistics and Services Q2 revenue up 40% YoY to $1,258 million

Adnoc Logistics and Services (Adnoc L&S) reported record-breaking second-quarter (Q2) and first-half (H1) results for 2025, surpassing market expectations and demonstrating resilience and operational strength in a volatile market.

Adnoc L&S’s Q2 revenue increased by 40 per cent year-on-year (YoY) to $1,258 million (Dhs4,618 million) with EBITDA growing 31 per cent YoY to $400 million (Dhs1,470 million).

Net profit for the quarter grew 14 per cent YoY to $236 million (Dhs866 million).

In H1 2025, the company’s revenue was $2,439 million (Dhs8,957 million), a 40 per cent YoY increase.

EBITDA rose by 26 per cent YoY to $744 million (Dhs2,732 million), driven by robust performance across all business segments, sustaining EBITDA margin at 30 per cent.

Net profit for H1 2025 was $420 million (Dhs1,544 million), up 5 per cent YoY, and up 18 per cent compared to H2 2024.

Adnoc L&S’s diverse and resilient business model enabled the company to deliver strong net profit and operating cash flow despite challenging shipping charter rate environments in Gas, Tankers, and Dry Bulk.

Driven by strong performance in its core business segments and improving margins, Adnoc L&S has upgraded its full-year guidance, expecting faster growth due to continued momentum and enhanced operational efficiency across key areas.

The company continues to enhance value and streamline operations across its diverse asset portfolio, while advancing integration and innovation through its shipping and logistics subsidiaries, Navig8 and Zakher Marine International (ZMI).

Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said, “We are proud to report our highest-ever quarterly results, underscoring the strength of our growth strategy and our ability to capitalise on diversified opportunities across our Integrated Logistics, Shipping and Services segments.”

He added that this record-breaking performance reflects ADNOC L&S’s continued outperformance of market expectations, driven by robust cash flows, strategic partnerships, and operational excellence.

Al Masabi said the integrated logistics segment delivered a solid performance, with revenues rising 22 per cent YoY to $1,293 million (Dhs4,748 million), reflecting strong demand and strategic growth in key areas. As a result, EBITDA rose by 27 per cent YoY to $420 million (Dhs1,542 million), highlighting the segment’s significant contribution to the company’s overall results.

This strong, profitable growth was mainly driven by continued strong utilisation and rates on Jack-up Barges (JUBs), improved profitability on the Integrated Logistics Solution Platform, and increased chartering activity beyond the ILSP. Additionally, Engineering, Procurement and Construction (EPC) projects, including the G-Island and Hail & Ghasha, contributed to strong revenue growth.

For the shipping segment, it demonstrated exceptional growth, with revenues surging 89 per cent YoY to $981 million (Dhs3,602 million). This performance was primarily driven by the consolidation of revenue from the Navig8 tanker fleet, marking a key milestone in the company’s strategic expansion.

Shipping EBITDA increased by 25 per cent YoY to $290 million (AED1,067 million), despite substantially weaker market conditions than H1 2024, reflecting strong operational execution. A robust EBITDA margin of 30 per cent reinforces Adnoc L&S’s ability to generate strong value even in less buoyant markets.

The services segment continues to extend Adnoc L&S’s diversified business model, with revenues rising 4 per cent YoY to $165 million (Dhs607 million). EBITDA grew 22 per cent YoY to $33 million (Dhs121 million), primarily driven by higher volumes at the Borouge Container Terminal and the share of profit from Navig8’s bunkering business (Integr8).

Meanwhile Analysts from all 16 major international financial institutions that cover Adnoc Logistics & Services are maintaining “STRONG BUY” or “BUY” recommendations on the Company’s shares, citing a robust balance sheet, global expansion, and the strong history of and outlook for earnings growth.

The recommendations are a strong endorsement of the Company’s successful execution of its transformational growth strategy, driven by the recent closure of its 80 per cent acquisition of Navig8 that added 32 tankers to the Company’s fleet and extended its international presence to 19 cities across 5 continents. Additionally, the Company continues to expand its fleet with upcoming deliveries of LNG Carriers, Very Large Ethane Carries, and Very Large Ammonia Carriers, and is also pursuing new partnerships such as its 15-year, $531 million agreement with Borouge to accelerate petrochemical exports from the UAE.