Adnoc L&S posts record results for the second quarter

13/08/2025 03:04 AST

Adnoc Logistics & Services has reported its highest-ever quarterly results for Q2 2025, with revenue rising 40 per cent year-on-year to $1.26 billion and Ebitda increasing 31 per cent to $400 million. Net profit for the quarter was up 14 per cent to $236 million, underscoring the company's resilience in a challenging global shipping market.

For the first half of 2025, revenue climbed 40 per cent to $2.44 billion, with Ebitda growing 26 per cent to $744 million, maintaining a robust 30 per cent margin. Net profit for the period rose 5 per cent to $420 million, supported by strong performance across Integrated Logistics, Shipping and Services, despite weaker charter rates in gas, tanker, and dry bulk segments.

Integrated Logistics revenue grew 22 per cent to $1.29 billion, boosted by high utilisation of jack-up barges, improved profitability in its logistics platform, and engineering projects such as G-Island and Hail & Ghasha. The Shipping segment surged 89 per cent to $981 million, driven by the consolidation of the Navig8 tanker fleet, while Services revenue increased 4 per cent to $165 million, supported by higher volumes at the Borouge Container Terminal.

Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said the record-breaking performance reflects the company's continued outperformance of market expectations, driven by robust cash flows, strategic partnerships, and operational excellence. "In line with this momentum, our upgraded full-year guidance demonstrates our confidence in delivering long-term value to shareholders."

Adnoc L&S has upgraded its full-year guidance, forecasting revenue growth in the high 20 per cent range, Ebitda growth in the mid-20s, and net income growth in the low to mid-double digits. The company also announced a 5 per cent increase in its 2025 dividend to $287 million, in line with its progressive payout policy.

The company signed a $531 million, 15-year agreement with Borouge to manage port and container operations at Al Ruwais Industrial City, aimed at boosting petrochemical exports. It also expanded its fleet with the delivery of a second LNG carrier and expects to receive its first Very Large Ethane Carrier in Q3 2025. Over $26 billion in contracted future income reinforces its long-term growth outlook.

Adnoc L&S is investing in technology to drive efficiency, launching an AI-powered Smart Ports system to cut resource allocation times from three hours to under a minute and partnering with Digital Ocean on a digital platform for offshore vessel chartering.

With capital expenditure plans on track and capacity to invest an additional $3 billion by 2030, Adnoc L&S targets a medium-term net debt/Ebitda ratio of 2.0-2.5x, supported by resilient cash flows and long-term contracted revenues.

Khaleej Times