Earnings are in from AD Ports, Emsteel, Adnoc Distribution

Emsteel forges higher earnings despite softer volumes

Steelmaker Emsteel delivered sharply higher earnings in 1Q 2026, as lower raw material costs, a 3% yearly uptick in steel product prices, and tighter cost controls helped offset softer volumes. Net income surged 246% y-o-y to AED 299 mn, according to its earnings release (pdf), while revenue remained broadly flat at AED 2.2 bn.

Steel volumes fell 6% y-o-y during the quarter, partly due to a planned rolling mill maintenance shutdown in January. The cement segment, however, continued to gain traction, with revenue rising 31% y-o-y to AED 269 mn as sales volumes from cement and clinker climbed 32%.

The company also moved to reinforce supply chains and logistics during the quarter, signing a five-year AED 600 mn freight agreement with Oldendorff Carriers to transport iron ore pellets annually, alongside a strategic MoU with Metal Park focused on downstream steel logistics and processing capacity in Abu Dhabi. Management said it remains “attentive” to the impact of regional developments on market conditions and supply chains as the outlook evolves.

The company didn’t face too much of an impact from supply chain disruptions, with demand still strong, though some private firms may have delayed orders, Group CEO Saeed Al Rameithi told CNBC Arabia (watch, runtime: 11:30). Strong demand from the public sector helps offset this, though, he added, while noting that the domestic market accounts for about 80% of revenues.

Adnoc Distribution grows beyond the pump on retail and aviation demand

Adnoc Distribution saw its earnings grow in 1Q 2026 despite regional disruption and softer commercial fuel volumes. Net income rose 21% y-o-y to USD 210 mn, according to its management discussion and analysis report (pdf) and earnings release (pdf), while revenue climbed 4% to USD 2.4 bn, supported by stronger fuel volumes and non-fuel retail growth.

Fuel and convenience retail drove growth: Fuel volumes hit a 1Q record of 3.8 bn liters, while non-fuel retail gross income rose 9.8% y-o-y to AED 251 mn on higher footfall, F&B sales, and stronger property management revenues. The company added 22 new service stations during the quarter, bringing its network to over 1k sites across the UAE, Saudi Arabia, and Egypt.

Commercial demand was more mixed: Commercial fuel volumes softened as Adnoc Distribution deliberately cut lower-margin corporate business, though aviation demand partly cushioned the decline. GCC aviation fuel volumes surged 73.8% y-o-y, helping commercial gross gain jump 37.6%, despite lower overall commercial volumes.

Looking ahead, the company is pushing further into EV charging and larger retail destinations. Adnoc Distribution says it plans to electrify eight major UAE highways by 2027 after opening the region’s largest superfast EV charging site on the Abu Dhabi-Dubai E11 highway during the quarter. It also expects to open five additional “The Hub by Adnoc” sites this year as it expands higher-margin retail and convenience offerings.

Shareholders are also shifting to quarterly payouts. The board approved its first quarterly dividend of 5.14 fils per share, payable in June, after extending the company’s dividend policy through 2030 earlier this year.

AD Ports delivers revenues through the squeeze

AD Ports’ operations beat regional disruptions: ADX-listed giant AD Ports saw its total net income rise 41% y-o-y to AED 653 mn in 1Q 2026, driven by operating leverage, lower finance costs, and stronger contributions from JVs and associates, according to its financial release (pdf). The group’s revenue rose 25% y-o-y to AED 5.8 bn during the same period — supported by robust growth across its maritime and shipping as well as economic cities and freezones clusters.

By segment: Maritime and shipping drove the growth this quarter — with container feeder volumes up 20% y-o-y to 871k TEUs, while the bulk, multipurpose, and Ro-Ro fleet expanded to 63 vessels from 41 a year earlier. Economic Cities and Freezones recorded 843k sqm of new industrial land leases across Kezad, alongside AED 1.1 bn in asset monetization.

Meanwhile, ports’ performance was mixed, with UAE container throughput declining 5% y-o-y and general cargo volumes falling 23% y-o-y, partly offset by stronger international activity, where container volumes grew 17% and general cargo volumes grew 21%.

How the system adapted: AD Ports kept services running by rerouting cargo and feeder operations through Fujairah Terminals and Khorfakkan Port, while activating an integrated network of land, rail, and air bridges across the UAE. The group also mobilized around 800 trucks and four daily Etihad Rail freight services through bonded corridors as it moved to expand essential-goods warehousing capacity from more than 76k sqm to 188k sqm.