ADNOC L&S: Guidance raised for 2026E on back of strong shipping rates in 2Q26

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ADNOC L&S: Guidance raised for 2026E on back of strong shipping rates in 2Q26

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ADNOC L&S

Guidance raised for 2026E on back of

strong shipping rates in 2Q26

Reiterate Rating: BUY | PO: 7.60 AED | Price: 5.99 AED

Guidance raised for 2026; still seems conservative 30 June 2026

Management has upgraded its 2026 guidance, now targeting low single‑digit revenue Equity

growth (vs a decline), high‑20% EBITDA growth (vs. mid‑ to high‑single‑digit), and

high‑60% net income growth (vs. mid‑ to high‑teens). The revision reflects stronger

Key Changesshipping rates through 2Q26 and a recovery in the integrated logistics segment. We

continue to view the updated outlook as conservative given prevailing spot rates and (US$) Previous Current

sustained strength across shipping markets. Accordingly, we raise our EBITDA and net Price Obj. AED7.20 AED7.60

income estimates by 14%/21% to incorporate stronger shipping assumptions and 2026E EPS 0.16 0.20

improved volumes. Post‑revision, our forecasts remain ahead of guidance, with 35% 2027E EPS 0.14 0.15

EBITDA growth and 79% net income growth, and stand 27%/49% above consensus. We 2028E EPS 0.15 0.16

reiterate our Buy with a TP of AED7.60 and update our estimates (see details inside).

Abhishek Kumar >>

2Q26 earnings expected to deliver c140% qoq increase ResearchMerrill LynchAnalyst(DIFC)

Market conditions remained supportive into 2Q, with both crude and product tanker +971 4 425 8227 abhishek.kumar29@bofa.com

rates significantly above 1Q26 levels. Integrated logistics activity is also showing early

Sashank Lanka >>

signs of recovery. For 2Q26, we expect ADNOC L&S to report net income of US$483mn Research Analyst

(72% above consensus) and EBITDA of US$662mn (52% above consensus). This Merrill Lynch (DIFC) +971 4 425 8231