ADNOC L&S Achieves Record Q2 Revenue Growth Of 40% Year-on-Year To USD 1,258 Million

ADNOC Logistics and Services plc (ADNOC L&S) has reported impressive financial results for the second quarter and first half of 2025, exceeding market expectations. The company's Q2 revenue rose by 40% year-on-year to $1,258 million (AED4,618 million), with EBITDA increasing by 31% to $400 million (AED1,470 million). Net profit for the quarter grew by 14% to $236 million (AED866 million).

The integrated logistics segment showed solid growth, with revenues climbing 22% year-on-year to $1,293 million (AED4,748 million). This was due to strong demand and strategic expansion in key areas. EBITDA for this segment increased by 27% to $420 million (AED1,542 million), highlighting its significant contribution to overall results.

In the shipping segment, ADNOC L&S achieved remarkable growth with revenues soaring 89% year-on-year to $981 million (AED3,602 million). This surge was mainly driven by consolidating revenue from the Navig8 tanker fleet. Despite weaker market conditions than H1 2024, shipping EBITDA rose by 25% to $290 million (AED1,067 million).

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, stated: "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 emphasized that this performance reflects the company's ability to exceed market expectations through robust cash flows and strategic partnerships.

The services segment also contributed positively with a revenue increase of 4% year-on-year to $165 million (AED607 million). This growth was primarily due to higher volumes at the Borouge Container Terminal and profits from Navig8’s bunkering business. EBITDA for this segment grew by 22% year-on-year to $33 million (AED121 million).

Future Outlook and Strategic Initiatives

ADNOC L&S has upgraded its full-year guidance due to continued momentum and improved operational efficiency. The company is enhancing value across its diverse asset portfolio while advancing integration through subsidiaries like Navig8 and Zakher Marine International. Engineering projects such as G-Island and Hail & Ghasha have also contributed significantly to revenue growth.

The company's diverse business model has enabled it to maintain strong net profit and operating cash flow despite challenging environments in Gas, Tankers, and Dry Bulk sectors. This resilience is supported by strategic initiatives aimed at streamlining operations and enhancing value across key areas.

ADNOC L&S's robust performance in core business segments has led to an upgraded full-year outlook. The company anticipates faster growth driven by enhanced operational efficiency. Its ability to generate strong value even in less buoyant markets is reinforced by a solid EBITDA margin of 30%.

ADNOC L&S's record-breaking results for H1 2025 demonstrate its operational strength in a volatile market. With a diverse business model and strategic initiatives in place, the company is well-positioned for continued success. Its focus on integration and innovation will likely drive further growth in the coming months.

With inputs from WAM