Borouge, ADNOC L&S enter $531 million partnership to accelerate UAE petrochemical exports
ABU DHABI (WAM) Borouge Plc and ADNOC Logistics & Services Plc (ADNOC L&S) have entered a 15-year strategic partnership that will support a significant increase in the production and export of petrochemicals from the UAE.The mutually beneficial service agreement will deliver a minimum guaranteed value of $531 million (Dh1,950 million), supporting the next phase of Borouge's accelerated growth plans, driving operational cost savings over the full contract term, realising more than $50 million in cost savings and efficiencies in the first five years alone, and enhancing the company's supply chain network.The agreement covers port management, container handling, and feeder container ship services for the Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi.ADNOC L&S will manage the transportation of up to 70 per cent of Borouge's annual production, which will increase significantly following the completion of the Borouge 4 plant expansion. It will deploy a minimum of two dedicated container feeder ships to transport Borouge's products from Al Ruwais to the deepwater ports of Jebel Ali in Dubai and Khalifa Port in Abu Dhabi.Hazeem Sultan Al Suwaidi, CEO of Borouge, commented, 'This agreement builds on our long-standing collaboration with ADNOC L&S, a partnership that has been instrumental in meeting the evolving needs of our customers in high-growth markets."It brings significant benefits to Borouge; driving substantial operational cost savings and enhancing our Logistics Variable Cost (LVC), as well as complementing our existing rail operations and expanding the flexibility of our supply chain network. With the rapid increase in our production capacity, we are advancing our capabilities in delivering differentiated products and solutions efficiently, while keeping pace with rising global demand."As Borouge plans to ramp up production capacity by 1.4 million tonnes per annum by the end of 2026 through its Borouge 4 mega project, Borouge will become the world's largest single-site polyolefin complex.The partnership with ADNOC L&S will further enhance Borouge's supply chain efficiency as well as reinforce ADNOC L&S' commitment to delivering innovative, integrated supply chain solutions that enhance trade, strengthen industrial resilience, and support the UAE's vision for economic diversification and global leadership.Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said, 'This comprehensive container terminal agreement marks a major milestone in our successful partnership with Borouge, delivering on ADNOC L&S' strategy to provide seamless, end-to-end logistics solutions that power the UAE's industrial growth and export ambitions.By leveraging our extensive maritime and logistics expertise, we are ensuring that Borouge's world-class petrochemical products reach global markets efficiently and competitively.'ADNOC L&S' integrated logistics capabilities include managing container terminal operations, feeder services, and logistics solutions to meet increasing global demand.
The agreement comes as ADNOC L&S continues to grow its international presence, providing comprehensive logistics solutions for global customers across various sectors.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
3 hours ago
- Zawya
US Stocks: S&P 500, Nasdaq end at record closing highs as moderate inflation lifts rate hopes
NEW YORK: The S&P 500 and the Nasdaq scored record closing highs on Tuesday, as news that July inflation rose broadly in line with expectations bolstered bets on a Federal Reserve interest rate cut next month. The Labor Department said the Consumer Price Index (CPI) rose 0.2% on a monthly basis in July, while annual inflation came in slightly below forecasts, drawing calls from U.S. President Donald Trump to lower interest rates. Yields on shorter-dated Treasury bonds - a reflection of interest rate expectations - slipped and rate futures showed traders are giving an 88.8% chance that the Fed could lower rates by about 25 basis points in September. "The CPI data is supportive for equities overall, getting some good news with the Fed looking more on track to cut in September and potentially more transitory inflation," said Katherine Bordlemay, co-head of client portfolio management, fundamental equities at Goldman Sachs Asset Management. "The first thing I'd guide is continue to lean into the theme of the big are getting bigger. We continue to have conviction around mega-tech and technology." Alphabet shares rose 1.2% as Perplexity made a $34.5 billion cash offer to buy the company's Chrome browser. Intel Corp climbed 5.6% after Trump said he met its CEO, Lip-Bu Tan, on Monday, praising Tan and calling the meeting "very interesting." Last week, Trump demanded Tan's immediate resignation, calling him "highly conflicted" over his ties to Chinese firms. The Dow Jones Industrial Average rose 483.52 points, or 1.10%, to 44,458.61, the S&P 500 gained 72.31 points, or 1.13%, at 6,445.76 and the Nasdaq Composite advanced 296.50 points, or 1.39%, to 21,681.90. The quality of economic data remains a concern weeks after Trump fired the head of the Bureau of Labor Statistics following downward revisions to previous months' nonfarm payrolls counts. Markets are monitoring developments around Trump's nominee, E.J. Antoni, to the bureau commissioner post and potential candidates for the Fed's top job. "This is still early innings of this process and just as the Fed will be beginning to cut rates in the autumn, that's when the inflation data will probably start to be registering some of these more direct tariff price increases and it's going to complicate the rate-cutting decision," said John Velis, a macro strategist at BNY. Relief came as the U.S. and China extended their tariff truce until November 10, staving off triple-digit duties on each other's goods. U.S. stocks have rallied in recent weeks on the back of strong tech earnings, easing trade tensions, and increased rate cut expectations. Inflows into U.S. stocks last week were the largest in two years, BofA Global Research data showed. The Russell 2000 index, tracking small-cap companies, advanced almost 3%. An index tracking airline stocks surged 8.87%, its biggest one-day rise in over a month after data showed airfares rose 4% in July. Bank stocks rallied, with the S&P 500 Banks index up 2.1%, as analysts said a steepening yield curve could help bank earnings as lenders could borrow cheap and lend at a higher rate. Cardinal Health dropped 7% after the drug distributor said it will buy healthcare management firm Solaris for $1.9 billion. Advancing issues outnumbered decliners by a 4.26-to-1 ratio on the NYSE. There were 484 new highs and 60 new lows on the NYSE. On the Nasdaq, advancing issues outnumbered decliners by a 2.69-to-1 ratio. The S&P 500 posted 27 new 52-week highs and 12 new lows while the Nasdaq Composite recorded 104 new highs and 96 new lows. Volume on U.S. exchanges was 16.40 billion shares, compared with the 18.3 billion average for the full session over the last 20 trading days. (Reporting by Johann M Cherian, Sanchayaita Roy and Purvi Agarwal in Bengaluru and Saeed Azhar in New York; Editing by Arun Koyyur, Maju Samuel and Richard Chang)
Gulf Today
19 hours ago
- Gulf Today
Adnoc Logistics and Services Q2 revenue up 40% YoY to $1,258 million
Adnoc Logistics and Services (Adnoc L&S) reported record-breaking second-quarter (Q2) and first-half (H1) results for 2025, surpassing market expectations and demonstrating resilience and operational strength in a volatile market. Adnoc L&S's Q2 revenue increased by 40 per cent year-on-year (YoY) to $1,258 million (Dhs4,618 million) with EBITDA growing 31 per cent YoY to $400 million (Dhs1,470 million). Net profit for the quarter grew 14 per cent YoY to $236 million (Dhs866 million). In H1 2025, the company's revenue was $2,439 million (Dhs8,957 million), a 40 per cent YoY increase. EBITDA rose by 26 per cent YoY to $744 million (Dhs2,732 million), driven by robust performance across all business segments, sustaining EBITDA margin at 30 per cent. Net profit for H1 2025 was $420 million (Dhs1,544 million), up 5 per cent YoY, and up 18 per cent compared to H2 2024. Adnoc L&S's diverse and resilient business model enabled the company to deliver strong net profit and operating cash flow despite challenging shipping charter rate environments in Gas, Tankers, and Dry Bulk. Driven by strong performance in its core business segments and improving margins, Adnoc L&S has upgraded its full-year guidance, expecting faster growth due to continued momentum and enhanced operational efficiency across key areas. The company continues to enhance value and streamline operations across its diverse asset portfolio, while advancing integration and innovation through its shipping and logistics subsidiaries, Navig8 and Zakher Marine International (ZMI). Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said, 'We are proud to report our highest-ever quarterly results, underscoring the strength of our growth strategy and our ability to capitalise on diversified opportunities across our Integrated Logistics, Shipping and Services segments.' He added that this record-breaking performance reflects ADNOC L&S's continued outperformance of market expectations, driven by robust cash flows, strategic partnerships, and operational excellence. Al Masabi said the integrated logistics segment delivered a solid performance, with revenues rising 22 per cent YoY to $1,293 million (Dhs4,748 million), reflecting strong demand and strategic growth in key areas. As a result, EBITDA rose by 27 per cent YoY to $420 million (Dhs1,542 million), highlighting the segment's significant contribution to the company's overall results. This strong, profitable growth was mainly driven by continued strong utilisation and rates on Jack-up Barges (JUBs), improved profitability on the Integrated Logistics Solution Platform, and increased chartering activity beyond the ILSP. Additionally, Engineering, Procurement and Construction (EPC) projects, including the G-Island and Hail & Ghasha, contributed to strong revenue growth. For the shipping segment, it demonstrated exceptional growth, with revenues surging 89 per cent YoY to $981 million (Dhs3,602 million). This performance was primarily driven by the consolidation of revenue from the Navig8 tanker fleet, marking a key milestone in the company's strategic expansion. Shipping EBITDA increased by 25 per cent YoY to $290 million (AED1,067 million), despite substantially weaker market conditions than H1 2024, reflecting strong operational execution. A robust EBITDA margin of 30 per cent reinforces Adnoc L&S's ability to generate strong value even in less buoyant markets. The services segment continues to extend Adnoc L&S's diversified business model, with revenues rising 4 per cent YoY to $165 million (Dhs607 million). EBITDA grew 22 per cent YoY to $33 million (Dhs121 million), primarily driven by higher volumes at the Borouge Container Terminal and the share of profit from Navig8's bunkering business (Integr8). Meanwhile 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 per cent 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. WAM
Al Etihad
a day ago
- Al Etihad
ADNOC L&S Q2 revenue up 40% YoY to $1,258 million
12 Aug 2025 11:01 ABU DHABI (WAM) ADNOC Logistics and Services plc (ADNOC L&S) on Tuesday reported record-breaking second-quarter (Q2) and first-half (H1) results for 2025, surpassing market expectations and demonstrating resilience and operational strength in a volatile L&S's Q2 revenue increased by 40 percent year-on-year (YoY) to US$1,258 million (Dh4,618 million) with EBITDA growing 31 percent YoY to $400 million (Dh1,470 million).Net profit for the quarter grew 14 percent YoY to $236 million (Dh866 million).In H1 2025, the company's revenue was $2,439 million (Dh8,957 million), a 40 percent YoY increase. EBITDA rose by 26 percent YoY to $744 million (Dh2,732 million), driven by robust performance across all business segments, sustaining EBITDA margin at 30 profit for H1 2025 was $420 million (Dh1,544 million), up 5 percent YoY, and up 18 percent compared to H2 L&S's diverse and resilient business model enabled the company to deliver strong net profit and operating cash flow despite challenging shipping charter rate environments in Gas, Tankers, and Dry by strong performance in its core business segments and improving margins, ADNOC L&S has upgraded its full-year guidance, expecting faster growth due to continued momentum and enhanced operational efficiency across key company continues to enhance value and streamline operations across its diverse asset portfolio, while advancing integration and innovation through its shipping and logistics subsidiaries, Navig8 and Zakher Marine International (ZMI).CEO of ADNOC L&S, Captain Abdulkareem Al Masabi, said, 'We are proud to report our highest-ever quarterly results, underscoring the strength of our growth strategy and our ability to capitalise on diversified opportunities across our Integrated Logistics, Shipping, and Services segments."He added that this record-breaking performance reflects ADNOC L&S's continued outperformance of market expectations, driven by robust cash flows, strategic partnerships, and operational Masabi said the integrated logistics segment delivered a solid performance, with revenues rising 22 percent YoY to $1,293 million (Dh4,748 million), reflecting strong demand and strategic growth in key areas. As a result, EBITDA rose by 27 percent YoY to $420 million (Dh1,542 million), highlighting the segment's significant contribution to the company's overall strong, profitable growth was mainly driven by continued strong utilisation and rates on Jack-up Barges (JUBs), improved profitability on the Integrated Logistics Solution Platform, and increased chartering activity beyond the ILSP. Additionally, Engineering, Procurement and Construction (EPC) projects, including the G-Island and Hail & Ghasha, contributed to strong revenue the shipping segment, it demonstrated exceptional growth, with revenues surging 89 percent YoY to $981 million (Dh3,602 million). This performance was primarily driven by the consolidation of revenue from the Navig8 tanker fleet, marking a key milestone in the company's strategic EBITDA increased by 25 percent YoY to $290 million (Dh1,067 million), despite substantially weaker market conditions than H1 2024, reflecting strong operational execution. A robust EBITDA margin of 30 percent reinforces ADNOC L&S's ability to generate strong value even in less buoyant services segment continues to extend ADNOC L&S's diversified business model, with revenues rising 4 percent YoY to $165 million (Dh607 million). EBITDA grew 22 percent YoY to $33 million (Dh121 million), primarily driven by higher volumes at the Borouge Container Terminal and the share of profit from Navig8's bunkering business (Integr8).
