Adnoc Logistics and Services has acquired 11 new vessels for a combined amount of about $1.3 billion as it expands its oil and gas shipping capacity.
The company has purchased five very large gas carriers (VLGCs) and six very large crude carriers (VLCCs) aimed at supporting Adnoc's growth in production and trading, it said on Friday in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
Nine of the vessels – six VLCCs and three VLGCs – were acquired on the secondary market and are scheduled for delivery in the third quarter of the year. They will enter service with Adnoc immediately after delivery, the company said.
The remaining two VLGCs are newbuild vessels acquired through a resale transaction from a Chinese shipyard, with delivery scheduled for the fourth quarter.
"By adding 11 vessels, we are expanding our capacity to support Adnoc’s growing exports, serve customers in key markets and capture opportunities in international energy trade," said Capt Abdulkareem Al Masabi, chief executive of Adnoc L&S.
The Adnoc subsidiary has been rapidly expanding its fleet. Last month, it signed a Dh3.3 billion ($900 million) order for four new liquefied natural gas vessels. The ships, with delivery scheduled for 2029, will be constructed at Jiangnan Shipyard in Shanghai, China. The order brought Adnoc L&S's total LNG newbuild programme to 18 vessels.
Including its 50 per cent share of the AW Shipping newbuild programme – a joint venture between Adnoc L&S and Wanhua Chemical Group – Adnoc L&S has committed billions of dollars to fleet expansion since 2022.
In May, the company said it would continue its strategic fleet expansion and modernisation programme despite the Iran war, which led to severe disruption at the Strait of Hormuz.
In June, Adnoc L&S also upgraded its full-year 2026 financial guidance because of a strong shipping performance and steady improvements across its offshore logistics operations. Net profit is projected to surge more than 60 per cent, significantly above previous expectations of growth in the mid-to-high teens, Adnoc L&S said.
It expects revenue to grow at a low single-digit rate for the year, up from a projection of low-to-mid single-digit reduction.
The latest transaction provides "near-term operational and earnings potential while increasing the scale, flexibility and resilience of the company’s shipping platform", the company said.
The company's fleet expansion is also aimed at supporting Adnoc's broader LNG growth strategy. The Abu Dhabi energy major recently launched a global LNG marketing and trading platform, targeting 47 million tonnes per annum of combined marketable LNG by 2035.
