ADNOC Logistics & Services

1. Company Overview & Earnings Context

ADNOC Logistics & Services (ADNOC L&S) is an Abu Dhabi Securities Exchange (ADX)-listed integrated maritime logistics company and a key enabler of ADNOC Group’s global operations. The company operates across Integrated Logistics, Shipping and Services, supported by a diversified fleet and a large portfolio of long-term contracts.

ADNOC L&S delivered record financial performance in H1 2026, driven primarily by exceptionally strong Shipping performance, elevated charter rates and services supporting the delivery of UAE energy globally. Forward-contracted revenue stood at approximately USD 25 billion, providing significant long-term earnings visibility.

2. Financial Performance Snapshot

• Revenue: USD 3.67 Billion / AED 13.47 Billion (+46% YoY)

• EBITDA: USD 1.48 Billion / AED 5.42 Billion (+98% YoY)

• EBITDA Margin: 40%, up 11 percentage points YoY

• Net Profit: USD 1.17 Billion / AED 4.31 Billion (+179% YoY)

• Earnings Per Share (EPS): AED 0.56 (+174% YoY)

• Free Cash Flow: USD 598 Million (+126% YoY)

• Operating Free Cash Flow: USD 1.15 Billion (+89% YoY)

Compared with H1 2025:

• Revenue increased from USD 2.51 billion to USD 3.67 billion.

• EBITDA increased from USD 744 million to USD 1.48 billion.

• Net profit increased from USD 420 million to USD 1.17 billion.

• EPS increased from AED 0.20 to AED 0.56.

• Free cash flow increased from USD 265 million to USD 598 million.

3. Operational Highlights & Key Metrics

• Shipping Revenue: USD 2.44 Billion / AED 8.95 Billion (+132% YoY)

• Shipping EBITDA: USD 1.14 Billion / AED 4.19 Billion (+292% YoY)

• Shipping Net Profit: USD 997 Million / AED 3.66 Billion (+693% YoY)

• Shipping EBITDA Margin: 47%, up from 28%

• Integrated Logistics Revenue: USD 1.04 Billion / AED 3.82 Billion (-20% YoY)

• Services Revenue: USD 189 Million / AED 694 Million (+14% YoY)

• Capital Expenditure: USD 547 Million (+61% YoY)

• Net Debt: USD 257 Million, down 80% YoY

• Total Equity: USD 8.15 Billion, up 31% YoY

4. Key Performance Drivers

The Shipping segment was the standout growth engine in H1 2026. Revenue surged 132% YoY to USD 2.44 billion, EBITDA increased 292% to USD 1.14 billion, and net profit jumped 693% to USD 997 million. Performance benefited from additional services supporting UAE energy deliveries, higher global charter rates, increased chartering activity and contributions from newly delivered vessels.

Integrated Logistics was comparatively weaker, with revenue declining 20% YoY to USD 1.04 billion. This primarily reflected the scheduled run-off of project revenue following completion of the Al Omairah Island project, alongside lower material-handling volumes, higher fleet operating costs and weaker utilization and day rates across the jack-up barge fleet.

Services delivered growth, with revenue increasing 14% YoY to USD 189 million and EBITDA rising 58% to USD 52 million, supported by ILSP warehouse activities, commercial pooling and strong margins from Integr8.

5. Outlook & Forward Guidance

Following the strong first-half performance, ADNOC L&S raised its full-year 2026 earnings guidance for the third time. The company now expects:

• Revenue: Mid-20% growth, versus previous low single-digit growth

• EBITDA: Mid-60% growth, versus previous high-20% growth

• Net Profit: High-110% growth, versus previous high-60% growth

• Shipping Revenue: Mid-80% growth

• Shipping EBITDA: Low-190% growth

The company is also continuing its major fleet expansion. Total vessel acquisitions and newbuild commitments announced year-to-date were approximately USD 2.3 billion, forming part of USD 5.7 billion in capex commitments.

Further vessel deliveries are scheduled during H2 2026, including VLCCs, VLGCs, VLACs and VLECs, expanding future earnings capacity and the company's presence across global shipping markets.

6. Investor Takeaway

ADNOC L&S delivered an exceptionally strong H1 2026, with revenue growing 46%, EBITDA 98% and net profit 179% YoY. The most significant driver was Shipping, where net profit increased 693% YoY, demonstrating the company's strong exposure to favorable charter markets and increased energy transportation activity.

Cash generation was also strong, with free cash flow more than doubling to USD 598 million, while net debt declined 80% YoY to USD 257 million. At the same time, Integrated Logistics remains an area to monitor following its revenue and EBITDA declines during H1.

The third upgrade to 2026 guidance, approximately USD 25 billion of forward-contracted revenue, and continued fleet expansion provide substantial visibility into future growth, although management notes that full-year performance remains sensitive to regional dynamics and shipping market conditions.