ADNOC Logistics and Services (ADNOC L&S), a unit of Abu Dhabi state oil company ADNOC, raised its 2026 profit guidance for the third time on Tuesday after reporting a 300 per cent jump in second-quarter profit, supported by higher shipping charter rates and record shipping performance.
The US-Israeli war with Iran has boosted demand for shipping and logistics services and lifted charter rates as vessel operators navigate increased security risks and disruptions to regional trade routes.
Net profit rose to $917 million in the quarter, compared with $228.8 million a year earlier.
Assuming continued support from strong shipping markets, ADNOC L&S raised its 2026 revenue growth forecast to the mid-20 per cent range from a previous forecast of low single-digit growth.
It lifted its 2026 net profit growth guidance to more than 110 per cent, from an earlier forecast of over 60 per cent, while cautioning that full-year results remained dependent on regional developments.
Shares in the company were up 3.9 per cent in early trading.
The offshore contracting segment benefited from improving material handling volumes across the company's integrated logistics services platform (ILSP), with further gains expected.
CEO Captain Abdulkareem Al Masabi said the company's $2.3 billion of vessel acquisitions and newbuild commitments this year would help meet ADNOC Group's evolving needs while boosting future earnings.
ADNOC L&S last week announced the $1.3 billion acquisition of 11 vessels, to expand its gas and crude shipping capacity.
It followed an order last month for four next-generation LNG carriers worth about $900 million, to be built at Jiangnan Shipyard in Shanghai.
ADNOC L&S reaffirmed a positive medium-term outlook.
The company maintained its medium-term net debt-to-EBITDA target of two to 2.5x and said it retained significant financial capacity for further investments.
ADNOC L&S declared a second-quarter dividend of 4.23 fils (about 1.1 cent) per share and maintained its policy of increasing annual dividend per share by at least 5 per cent over the medium term.
(Reporting by Amna Mariyam in Bengaluru; Editing by Emelia Sithole-Matarise)