Largest-ever fuel volumes spur ADNOC Distribution's H1 net profit by 12%
Exceeding analyst expectations, the company achieved its highest-ever first-half EBITDA of US$566 million, up 10.0 per cent YoY, and a 12.2 per cent YoY increase in net profit to US$358 million.
Non-fuel retail business continues to drive strong growth, with a 10.4 per cent YoY rise in transactions for the first half of 2025. The continued outperformance of non-fuel retail over fuel retail reinforces the company's strategic focus on diversifying revenue streams and capturing growing demand for convenience services.
ADNOC Distribution added 47 new service stations in the first half of 2025, bringing its total network to nearly 940. A majority of the new stations are in Saudi Arabia, where the company is successfully leveraging its CAPEX-light Dealer Owned-Company Operated (DOCO) business model. The model has enabled ADNOC Distribution to double its Saudi network YoY, from 69 to 140 stations.
Building on this momentum, ADNOC Distribution has revised its expansion guidance upwards to 60-70 new stations by the end of 2025, with 50-60 of these located in Saudi Arabia.
Bader Saeed Al Lamki, CEO of ADNOC Distribution, commented: 'Our strong H1 2025 results demonstrate the successful execution of our 2024-28 growth strategy, driven by operational excellence and customer-focused innovation.
'The sustained growth in EBITDA and net profit highlights our ability to scale effectively, drive value creation, and expand our leadership in mobility and convenience retail. By leveraging advanced technologies, unlocking new operational efficiencies, and bringing our commitment to quality to more communities than ever before, we are well-positioned to deliver sustainable, long-term growth.'
With a net debt to EBITDA ratio of 0.80x at the end of H1 2025, the company said it expected an annual payout of US$700 million (at 20.57 fils per share) or a minimum of 75 per cent of net profit, whichever is higher, through 2028. At a share price of AED3.70 as of 6 August, it represented an annual yield of nearly 6 per cent.
ADNOC Distribution has embraced advanced AI technologies to drive growth and operational efficiency. By leveraging innovations such as predictive fuel demand models, intelligent assortment, and hyper-personalised offerings, the company said it was 'transforming its operations while enhancing customer satisfaction across its value chain'.
During the first half of the year, ADNOC Distribution's E2GO fast- and super-fast EV charging network reached the milestone of over 300 charging points installed across the UAE. The company aims to grow the network to 500+ charging points by 2028, and said it is on track to meet its target of adding 100 new charging points by the end of 2025.
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