ADNOC Logistics And Services Reports 40% Revenue Growth To $1,258 Million In Q2 2025

ADNOC Logistics and Services plc (ADNOC L&S) has announced its highest-ever quarterly and half-yearly financial results for Q2 and H1 of 2025. This performance showcases the company's robust capacity to thrive amidst the fluctuating dynamics of the market, highlighting a significant 40 percent uplift in year-on-year revenue during both periods.

The company witnessed a notable leap in its Q2 earnings, with revenues reaching US$1,258 million (AED4,618 million), which is a 40 percent increase from the previous year. This growth was complemented by a 31 percent rise in EBITDA, which hit $400 million (AED1,470 million). Similarly, the net profit for this quarter ascended by 14 percent year-on-year to $236 million (AED866 million).

For the first half of 2025, ADNOC L&S reported revenues amounting to $2,439 million (AED8,957 million), marking a 40 percent increase from the previous year. The EBITDA followed suit, enhancing by 26 percent year-on-year to reach $744 million (AED2,732 million).

This financial strength was driven by stellar performances across all business segments, maintaining an EBITDA margin of 30 percent. The net profit for H1 2025 experienced a 5 percent year-on-year increase, totaling $420 million (AED1,544 million), which also signifies an 18 percent rise from the second half of 2024.

The company's ability to navigate through challenging market conditions, especially within the shipping charter rate environments for Gas, Tankers, and Dry Bulk, was instrumental in achieving a solid net profit and operating cash flow. This success is attributed to ADNOC L&S's diversified and resilient business model, coupled with its focus on enhancing operational efficiency and margin improvement across its core business segments.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, expressed pride in the company's record-setting performance, stating, "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."

The integrated logistics segment saw a 22% increase in revenue, reaching $1,293 million (AED4,748 million), underpinned by strong demand and strategic growth. The shipping segment also demonstrated significant growth, with an 89% increase in revenues to $981 million (AED3,602 million), mainly due to the consolidation of revenue from the Navig8 tanker fleet. Meanwhile, the services segment continued to bolster ADNOC L&S's diversified business model, with a 4% increase in revenues to $165 million (AED607 million).

Al Masabi highlighted the integrated logistics segment's performance, noting a 27% rise in EBITDA to $420 million (AED1,542 million), reflecting its substantial contribution to the company's overall results. This growth was driven by strong utilisation and rates on Jack-up Barges (JUBs), profitability on the Integrated Logistics Solution Platform, and increased chartering activity.

The shipping segment's EBITDA rose by 25% year-on-year to $290 million (AED1,067 million), showcasing strong operational execution even in weaker market conditions. The services segment also saw a 22 percent growth in EBITDA, primarily due to higher volumes at the Borouge Container Terminal and profits from Navig8's bunkering business (Integr8).