Adnoc Logistics and Services reported a 12 per cent annual jump in first quarter net income despite Iran war-driven maritime logistics disruptions as higher shipping rates offset a drop in revenue.
Net profit attributable to the equity holders of the company for the three months to the end of March climbed to $202.74 million, the company said in a filing on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue for the period dropped 10 per cent on an annual basis to $1.08 billion, while quarterly Ebitda (earnings before interest, taxes, depreciation and amortisation) rose 7 per cent year on year to $368 million.
“Despite disruption to maritime traffic through the Strait of Hormuz, our diversified business model continued to perform as expected,” said Capt Abdulkareem Al Masabi, chief executive of Adnoc L&S.
“Our global scale, long-term contracted revenue base and integrated portfolio underpinned our resilience.”
The Strait of Hormuz, the narrow waterway through which a fifth of global oil and gas supplies flowed before the war, has been effectively shut since the US-Iran war broke out on February 28. The vital trade route is also a primary channel for the flow of the commodities and trade from the Gulf countries.
The Iranian blockade on the strait and attacks on commercial vessels have caused an unprecedented energy shock and disrupted businesses from tourism and hospitality to logistics and transport.
However, despite the “challenging market environment”, higher global shipping rates helped offset the impact of disruptions to international shipping, the company said.
The business continues to benefit from long-term contracted revenue representing about 60 per cent of the aggregate revenue of both it and its AW Shipping joint venture.
“This provides strong earnings and cash flow visibility,” Adnoc L&S said.
The company also said it is upgrading its full-year 2026 financial guidance, “reflecting actual performance through April 2026 and an improved outlook on shipping market fundamentals”.
The updated assumptions from May onwards also reflect supportive demand-supply dynamics, it said.
“Offshore contracting guidance also remains conservative, assuming minimum activity levels amid regional uncertainty,” it added.
Despite the uncertainty the company will continue its strategic fleet expansion and modernisation programme.
In March this year, the fifth new-build LNG carrier Arada joined the fleet followed by Al Taweelah in April. The new vessels are part of a $1.2 billion order placed in 2022, with five vessels being deployed under long term contracts, from May 2026, to transport liquefied natural gas produced by Adnoc Gas, the company said.
Adnoc L&S’s growth investments also remain on track and the firm retains “significant financial capacity for investments beyond announced projects”, it said.
The company, which announced a 2025 dividend of $325 million, expects to pay out $341 million for the current fiscal year, a 5 per cent increase.
