ADNOC Distribution has posted a 12.2% increase in net profit year-on-year, reaching $358 million in the first half of 2025. Surpassing analysts’ forecasts, the robust earnings were largely attributed to the continued success of the company’s non-fuel retail division, according to financial data published on Thursday.
- Financial Performance
- The UAE’s leading fuel and convenience retailer recorded a record H1 EBITDA of $566 million—a 10% annual rise—according to its disclosure to the Abu Dhabi Securities Exchange (ADX).
- Fuel sales volumes increased by 5.6% to 7.62 billion litres, marking another first-half high.
- These results align with ADNOC Distribution’s strategic five-year growth blueprint, which seeks to boost EBITDA through 2028 across both its retail and mobility businesses.
- The non-fuel retail arm remained a key driver, with gross profit rising 14.9% year-on-year and transaction volumes increasing by 10.4%. Its ADNOC Rewards loyalty programme expanded by 19.5%, now counting close to 2.5 million members.
- The company reported a healthy financial footing, with a net debt-to-EBITDA ratio of 0.80x as of June-end.
- With a planned annual capital expenditure of $250–300 million, ADNOC Distribution aims to maintain its growth trajectory through H2 2025 and into the future.
Dividends Outlook
On Thursday, ADNOC Distribution reiterated its dividend policy, which guarantees an annual payout of $700 million or at least 75% of net profits through to 2028—whichever proves greater.
A $350 million interim dividend is scheduled for October, pending board approval. At a share price of $1.01 (AED 3.7) on 6 August, this represents an annual dividend yield nearing 6%.
Regional Expansion Efforts
In H1, ADNOC Distribution added 47 new stations, bringing its total network close to 940. The expansion was predominantly focused on Saudi Arabia, where it has accelerated its Dealer Owned-Company Operated (DOCO) model. The Saudi network has more than doubled from 69 to 140 locations year-on-year.
Riding this momentum, the company raised its full-year station opening guidance to 60–70, with 50–60 projected for the Saudi market.
In May, ADNOC Distribution debuted its Voyager lubricant line in Egypt, targeting 3,000 sales points nationwide by end-2026. Voyager continues to lead the UAE market by share and is now sold in over 47 countries.
EV Infrastructure Initiatives
The company is also scaling its electric vehicle infrastructure. In H1 2025, the E2GO EV charging network surpassed 300 rapid and ultra-rapid charging units across the UAE. ADNOC Distribution targets more than 500 chargers by 2028 and is on course to add 100 this year alone.
