ADNOC L&S lifts 2026 profit outlook to $4 bn

ADNOC Logistics & Services reported record third-quarter 2026 net profit of $887 million on Nov. 12, according to an Investing.com earnings-call transcript.

The Abu Dhabi shipping and logistics group raised full-year 2026 net profit guidance to about $4 billion from about $1.9 billion previously, and said fourth-quarter profit should be about $2 billion.

Revenue reached $3.29 billion in the third quarter of 2026, while EBITDA, earnings before interest, tax, depreciation and amortisation, was $1.088 billion. A forecast table cited in the transcript showed expected revenue of $1.87 billion and expected EPS of $0.0608, though the call did not provide a direct EPS comparison.

“Our third quarter marks another landmark quarter for ADNOC Logistics & Services,” CEO Captain Abdulkareem Al Masabi said on the call. He said the performance “demonstrates that the strong momentum from the second quarter has extended into our third and fourth quarters.”

Al Masabi said investors should not judge the company only by current freight conditions. “Do not view ADNOC Logistics & Services by the current rate cycle alone. Look at the structural growth we are building beyond it,” he said.

CFO Hugh Baker said the company was prioritising longer-term expansion. “We are building ADNOC L&S for the future, not for the next quarter,” he said, adding that the group has cash generation and capacity to invest in fleet growth and contracted work.

The company said nine-month 2026 net profit reached $2.1 billion, with operating free cash flow above $3 billion and free cash flow above $1 billion. Net debt stood at $131 million, equal to 0.03 times EBITDA, and undrawn credit facilities totalled $1.9 billion.

ADNOC L&S attributed the results to historically high tanker and gas carrier rates, new vessel deliveries and stronger material-handling volumes. The company said revenue more than doubled year on year and that more than half of revenue is now long-term contracted.

The company said contracted revenue with ADNOC totals $21 billion through 2030. It also set out committed capital expenditure of $7 billion through 2030, 55 committed vessels and projected contracted EBITDA of more than $600 million by 2030, compared with about $135 million in 2025.

Investing.com reported that the stock rose 36.4% to $6.71 from a previous close of $4.92 after the results. That left the shares closer to the top of their 52-week range of $4.80 to $7.61.

Management also pointed to risks. Gross margin fell to 33.2% in the third quarter from 41.3% in the second quarter because of a shift in earnings mix, and the company booked $130 million in one-off charges tied to early vessel redeployments.

Executives said freight rates remain volatile and geopolitical conditions complicate 2027 guidance. Analysts on the call questioned the margin decline, earnings visibility for 2027, vessel redeployment costs and how the company plans to use cash.

Management said the redeployment charges included $105 million for early termination of two VLCC charters and $25 million for an LR2 tanker, moves it said were intended to capture stronger spot rates. The company said capital allocation remains focused on fleet expansion, long-term contracts and platform diversification.

Source: earnings-call transcript, Investing.com, Nov. 12, 2026