ABU DHABI: Analysts from all 16 major international financial institutions that cover ADNOC Logistics & Services are maintaining “STRONG BUY” or “BUY” recommendations on the Company’s shares, citing a robust balance sheet, global expansion, and the strong history of and outlook for earnings growth.
The recommendations are a strong endorsement of the Company’s successful execution of its transformational growth strategy, driven by the recent closure of its 80% acquisition of Navig8 that added 32 tankers to the Company’s fleet and extended its international presence to 19 cities across 5 continents. Additionally, the Company continues to expand its fleet with upcoming deliveries of LNG Carriers, Very Large Ethane Carries, and Very Large Ammonia Carriers, and is also pursuing new partnerships such as its 15-year, $531 million agreement with Borouge to accelerate petrochemical exports from the UAE.
In Q2, an additional 4 analysts took up coverage, increasing total coverage from 12 to 16 analysts, reflecting the strong and growing international interest in the Company.
HSBC upgraded its recommendation from “HOLD” to “BUY,” citing the Company’s already strong growth trajectory as “not slowing down,” while Morgan Stanley named ADNOC L&S a “Top Pick,” emphasizing its strategic positioning across upstream, midstream, and downstream energy investments in the UAE.
EFG Hermes reiterated its “BUY” recommendation for the Company, describing its “accretive growth spree” that “should result in margin enhancement” while highlighting the Company’s progressive dividend policy that will grow 5% per year.
JP Morgan sees strong potential for future growth for the Company with the expectation that the volume of energy products shipped by ADNOC L&S on behalf of ADNOC Group will double in size by 2030 and serve as a “major future growth platform.”
Nicholas Gleeson, Chief Financial Officer of ADNOC L&S, said: “The unanimous positive tone of analyst coverage is a testament to the sustained delivery of high earnings growth and our potential to keep doing so. Our growth strategy is unlocking new value for shareholders and we have built a foundation that will enable robust earnings and strong EBITDA margins in the future. We remain committed to accelerating our growth, expanding our fleet and service capabilities, and entering new markets, and we have the financial capacity to fund significantly more value-accretive growth. There is much more to come, and we appreciate the robust analysis provided by those covering our stock.
The strong consensus from analysts came despite the market volatility in 2025 that greatly impacted the global maritime industry, a testament to the Company’s operational strength and resiliency in the face of uncertainty around international trade flows, and its ability to generate strong cash flows, stable margins, and a robust balance sheet.
As noted in analyst research, the Company benefits from ADNOC Group’s growth into a fully integrated energy company, as ADNOC L&S plays a central role in the integrated logistics support of upstream & downstream energy field activities, and from shipping energy products to global demand centers.
ADNOC L&S forecasts strong continuing growth driven by domestic & international growth in integrated logistics and also underpinned by hundreds of years of long-term shipping contracts. With the ability to commit an additional $3 billion in growth investments in coming years that has not yet been incorporated into the Company’s guidance or the “BUY” recommendations, analysts have noted the tremendous potential for ADNOC L&S to accelerate its growth trajectory.
