Adnoc Logistics and Services (Adnoc L&S) has reported a 17 per cent annual rise in its third-quarter net profit as revenue grew on the back of a strong performance across its business units.
Net profit attributable to equity holders of the company for the three months to the end of September climbed to $205.4 million, the company said in a filing on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue for the period jumped 36 per cent year on year to $1.26 billion, while Ebitda (earnings before interest, taxes, depreciation and amortisation) increased 38 per cent to $379 million.
“We are expanding capacity, capturing value-accretive opportunities and reinforcing Adnoc L&S’s position as a global leader in energy maritime logistics,” said Capt Abdulkareem Al Masabi, chief executive of Adnoc L&S.
Adnoc L&S's net profit during the January to September period also rose 6.7 per cent annually to nearly $615 million. Revenue grew nearly 39 per cent year on year during the nine-month period to $3.7 billion, while Ebitda rose by 30 per cent to $1.12 million.
“This is our strongest nine-month performance since listing,” Mr Al Masabi said. “Our performance is driven by the strength of our strategy and the disciplined execution.”
Adnoc L&S delivers energy products and solutions to more than 100 customers in about 50 countries through its three business units, including integrated logistics, shipping and marine services.
It currently has 23 vessels under construction, with deliveries scheduled through to 2028. This expansion is projected to generate more than $10 billion in long-term revenue for the company, which also has more than $26 billion in long-term contracted revenue.
The company made its debut on the Abu Dhabi bourse in June 2023 after parent company Adnoc raised about Dh2.83 billion from the sale of a 19 per cent stake in the subsidiary.
Adnoc also completed a $317 million secondary offering in August, which raised Adnoc L&S's free float to about 22 per cent.
Following that, Adnoc L&S said that from November 25, the company would be included in the MSCI Emerging Markets Index, a move expected to help it attract more than $200 million in passive capital inflows.
The company said on Tuesday that dividend for the current financial year is set to increase by 20 per cent year on year to $325 million, to be paid on quarterly basis. The amount will continue increasing by 5 per cent from 2026 until 2030, subject to approvals, it added.
Adnoc L&S said it remains confident in its medium-term outlook for 2026 to 2029, supported by long-term growth prospects, strategic expansion and resilient income streams – despite the global volatility. The company projects net income to grow in the low to mid double-digit range year on year, it said.
Partnerships and expansion
Last month, Adnoc L&S signed a $300 million deal with Ta’ziz to set up a chemicals port in Ruwais industrial hub to help the company export chemicals to global markets. As part of the 50-year deal, Adnoc L&S will build, own and operate the port, which is projected to generate more than $1.3 billion in revenue for the company over the next 27 years, it said at the time. The new port is scheduled for completion in the fourth quarter of 2026.
The company also signed a $531 million, 15-year logistics agreement with Abu Dhabi chemicals maker Borouge, in June.
Adnoc L&S is also investing heavily in its digital transformation strategy. It has deployed an AI-powered smart port solution, reducing service sourcing time from three hours to 45 seconds, saving 3,000 hours annually and increasing jetty utilisation by 20 per cent, it said.
