Second quarter earnings of Adnoc L&S surge by 10%, attributed to increased revenue
Adnoc Logistics and Services (Adnoc L&S) has announced its Q2 2025 financial results, revealing a focus on fleet expansion, operational efficiency, and expanded integrated logistics services. The company reported a 40% increase in revenue to $1.26 billion and a 31% rise in EBITDA to $400 million, reflecting strong growth across all business segments.
Fleet Expansion and Consolidation
The Shipping segment's revenue surged by 89% to $981 million, largely due to the consolidation of the Navig8 tanker fleet. This move significantly increased capacity and market presence, aligning with Adnoc L&S's strategy to optimize fleet utilization in a challenging global shipping market.
Integrated Logistics Growth
Revenues rose 22% to $1.29 billion, boosted by high utilization of jack-up barges and key engineering projects such as G-Island and Hail & Ghasha. These investments indicate continued investment in infrastructure and expanded logistics services.
Services Segment Growth
The company's services segment also grew, supported by higher volume throughput at the Borouge Container Terminal, reflecting expansion of port services and customer base.
Financial Performance and Resilient Business Model
Adnoc L&S's diverse business model allows it to maintain strong profits and cash flows despite weaker charter rates globally, suggesting strategic risk management and operational efficiency improvements.
Future Plans and Partnerships
While no new partnerships were explicitly listed in the Q2 report, the strategic fleet consolidation and ongoing engineering projects imply investments that strengthen ADNOC L&S’s service capabilities and geographic reach. The upgraded full-year guidance due to improved margins and momentum demonstrates confidence in their growth initiatives.
Medium-Term Outlook and New Agreements
Adnoc L&S remains confident in its medium-term outlook (2026-2029). The company has signed a 15-year, $531 million agreement with Abu Dhabi chemicals maker Borouge to help boost petrochemical exports and support UAE’s industrialisation strategy. Adnoc L&S will manage the transportation of up to 70 per cent of Borouge’s annual production to Khalifa Port in Abu Dhabi and Jebel Ali in Dubai.
Debut on the Abu Dhabi Bourse and Capital Expenditure
Adnoc L&S made its debut on the Abu Dhabi bourse in June 2023. The company's growth investments remain on track, with capital expenditure guidance unchanged. Dividend payout for 2025 is projected to be $287 million, subject to approvals.
Business Units
Adnoc L&S has three business units: integrated logistics, shipping, and marine services. Its subsidiaries include Zakher Marine International Holdings and Navig8.
In summary, Adnoc Logistics and Services' growth strategy for 2025 centers on expanding and optimizing its fleet via acquisitions and consolidation, broadening integrated logistics through major engineering projects, and enhancing service offerings at key terminals — all supported by strong financial performance and a resilient business model.
- The Shipping segment's growth in Adnoc Logistics and Services is largely due to the consolidation of the Navig8 tanker fleet, which significantly increased capacity and market presence.
- Adnoc L&S reported a 22% increase in revenues for the Integrated Logistics segment, boosted by high utilization of jack-up barges and key engineering projects such as G-Island and Hail & Ghasha.
- The company's Services segment growth was supported by higher volume throughput at the Borouge Container Terminal.
- To support the UAE's industrialization strategy, Adnoc L&S signed a 15-year, $531 million agreement with Abu Dhabi chemicals maker Borouge to help boost petrochemical exports, indicating further expansion and partnerships in the energy and industry sectors.
