ADNOC L&S performed favourably in the past year, reporting a record-breaking performance in the second quarter of 2025, with revenue increasing 40% and EBITDA witnessing a 31% year-over-year growth.
The Abu Dhabi National Oil Company (ADNOC) plans to sell a 3% stake in its logistics and services unit, ADNOC L&S. The company announced that it will offer 222 million shares to institutional investors to increase its availability and trading on the market.
ADNOC has announced this sale in the hope that this strategic move will expand its free float, as the company seeks to be included in the MSCI Emerging Market Index. Featuring on this Index would attract international investors to ADNOC, thus diversifying the company’s shareholder base and raising the company’s profile at the global level.
ADNOC L&S performed favourably in the past year, reporting a record-breaking performance in the second quarter of 2025, with revenue increasing 40% and EBITDA witnessing a 31% year-over-year growth. These financial results boosted the company’s confidence to upgrade its full-year guidance.
The final terms and price are set to be finalised around September 3, 2025, and ADNOC’s remaining shares in ADNOC L&S will be in a six-month lock-up period after the deal is signed.
ADNOC has been experiencing an upturn, recently bagging a deal with IndianOil, making it the UAE-based company’s biggest client. Effective from 2029, the company will provide IndianOil with LNG supplies totalling 1 million tonnes annually.
It was announced earlier this week that by 2029, IndianOil’s offtake of LNG will be nearly 2.2 million tonnes per annum (mtpa). Of this 2.2 mtpa, ADNOC’s Das Island will be providing the Indian company 1.2 mtpa, and the remaining 1 mtpa will be covered by the Ruwais LNG project.
This ‘sales and purchase’ agreement will be for 15 years and has converted the previous ‘heads of agreement’ into a concrete deal. ADNOC said in a statement that this new deal augments the company’s global presence, particularly in Asia, where LNG demands are high.
Rashid Khalfan Al Mazrouei, ADNOC’s Senior Vice-President, Marketing, said that this deal highlights the deepening energy relations between India and the UAE. These LNG cargoes will be delivered to any port across India.
With global emphasis on clean energy increasing, oil importers and exporters alike understand the need to reduce reliance on crude oil. Therefore, Khalfan added that through the Ruwais LNG Project, the Abu Dhabi-based enterprise is equipped to provide more lower-carbon gas. The Ruwais LNG facility will also be the first plant in the Middle East to be powered by clean energy.
ADNOC’s Ruwais LNG project is currently under development and will be operational from 2028. The plant has pledged more than 8 mtpa of its 9.6 mtpa production capacity to international customers alone. The oil company has set up this facility keeping in mind the rising global demand for fuelling homes and industries.
In June, news broke that ADNOC’s energy investment arm, XRG’s 5-year business plan, which sought to ‘accelerate growth and long-term value creation,’ was greenlit by the company. Launched in November 2024, XRG was able to distinguish itself as a ‘differentiated global energy investor’, with more than $80 billion in enterprise value.
The investment unit had proposed to build a ‘Top 5’ integrated global gas and LNG business with a targeted capacity of 20-25 mtpa over the next decade. The XRG Board of Directors are strategising the expansion of its Energy Solutions platform’s investment opportunities across the energy value chain. The Board also wishes to simultaneously develop its carbon capture and storage and low-carbon fuel projects.
Over the past year, in order to expand and support its ambitious projects, ADNOC has engaged in a series of mergers and acquisitions and partnerships. The company has inked deals with various international companies based in countries like the US, Azerbaijan, Egypt, Mozambique and Turkmenistan.
ADNOC’s long-term goals are highlighted through its various wings, and its plans to sell its logistics and solutions shares are part of a wider array of changes and opportunities it is looking to explore.
