- ADNOC L&S expects mid-to-high 40% shipping revenue growth in 2025 after a 27% rise in 2024.
- Growth driven by higher charter rates and four dual-fuel VLCCs added in 2023.
- Tanker market may start weak in 2025 but tighten later; LNG rates expected to recover.
- Integrated logistics revenue grew 40% in 2024, boosted by jackup barges and the Hail & Ghasha project.
ADNOC Logistics & Services (L&S) expects its 2025 shipping revenue to grow in the mid-to-high 40% range, following a 27% increase in 2024 due to rising charter rates for dry bulk and tankers transporting crude oil, refined products, and chemicals, according to S&P Global.
The company attributes 2024 revenue gains to the addition of four dual-fuel VLCCs in 2023. In a statement on Feb. 12, ADNOC L&S noted that the tanker market is expected to start weak in 2025, “followed by anticipated market tightening,” while LNG carriers face high vessel deliveries but limited new liquefaction capacity.
Despite an initial slowdown, ADNOC L&S expects LNG market softness to ease as new projects become operational.
Integrated Logistics and Gas Projects Drive Growth
ADNOC L&S reported a 40% increase in integrated logistics revenue in 2024, reaching $2.28 billion, supported by the expansion of jackup barges and the Hail & Ghasha gas project. The company anticipates low single-digit percentage growth in 2025, with offshore contracting, offshore services, and artificial island construction at Upper Zakum (now 54% complete) playing key roles.
ADNOC aims to produce 1.5 Bcf/d of gas from Hail & Ghasha by the end of the decade, reinforcing its goal of gas self-sufficiency. The company previously confirmed its final investment decision on the project in October 2023.
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Source: S&P Global
