ADNOC distribution reports highest first-quarter ebitda, with 11% year-on-year growth
For the first three months of 2025, ADNOC Distribution's financial performance significantly exceeded analyst expectations. Net profit increased 16% year-on-year (y-o-y) to $174 million (AED639 million), with EBITDA increasing by 11% y-o-y to $275 million (AED1.01 billion), the company's highest first-quarter EBITDA result since its 2017 IPO. Underlying EBITDA rose 13% y-o-y to $246 million (AED 904 million).
These strong results reflect growth in both fuel and non-fuel segments, driven by the Company's focus on sustainable growth and cost efficiencies. ADNOC Distribution added 20 new service stations in Q1, bringing the network-wide total to 915, up from 846 in Q1 2024 and putting the Company on track to meet its target of 40-50 new stations by the end of 2025.
Key to this expansion has been ADNOC Distribution's focus on the large and dynamic Saudi fuel retail market, where the Company is able to expand quickly to meet increasing demand while minimizing CAPEX by deploying a Dealer Owned-Company Operated (DOCO) business model. In Q1 2025, ADNOC Distribution contracted 15 service stations in Saudi Arabia, growing its total network in the country to 115, up by 67% compared to Q1 2024.
Eng. Bader Saeed Al Lamki, Chief Executive Officer of ADNOC Distribution, said: 'Our record first-quarter performance demonstrates our commitment to growth and delivering sustainable and innovative solutions to our customers while creating long-term value for shareholders. Our outstanding Q1 2025 results, with an 11% rise in EBITDA and a 16% increase in net profit, highlight ADNOC Distribution's outstanding progress against our 2024-2028 growth strategy and our commitment to operational excellence. As we continue to expand our network and capabilities, adding new service stations and enhancing our customer experiences, we remain focused on capturing new opportunities and setting new benchmarks for the mobility and convenience retail industry.
OPERATIONAL PERFORMANCE
In Q1 2025, ADNOC Distribution achieved its highest-ever first-quarter fuel volume of 3.7 billion liters, driven by market share growth, increasing demand, and network expansion in the UAE, Saudi Arabia, and Egypt. Non-fuel retail (NFR) continues to be a key growth driver, outpacing fuel growth and allowing ADNOC Distribution to extract more value from its assets. ADNOC Rewards, the UAE's largest fuel and convenience loyalty program, now has 2.4 million members – a 19% y-o-y increase. In Q1 2025, NFR gross profit grew by 14% y-o-y, driven by a 9% increase in transactions, higher convenience store conversion rates, and continued strong performance in car wash, lube change, and property management services.
ADNOC Distribution added 20 new quick-service retail outlets in Q1 2025, further cementing its position as the largest retail property network in the UAE with 1,165 units across the country. Additionally, the Company significantly expanded its E2GO public EV charging network, adding 63 new fast and super-fast charging points in Q1, bringing the total to 283 installed across the UAE -a y-o-y increase of 318%. This expansion puts ADNOC Distribution on track to meet its target of 100 additional charging points by the end of 2025, in line with a commitment to grow the network to 500+ charging points by 2028.
DIVIDEND AND SHAREHOLDER RETURNS
With strong and predictable free cash flow generation and disciplined capital allocation, ADNOC Distribution continues to provide best-in-class yields and transparency on returns. With a robust balance sheet and net debt to EBITDA ratio of 0.7x, the Company remains committed to its dividend policy, with a projected annual payout of $700 million (at 20.57 fils per share) or a minimum of 75% of net profit, whichever is higher, through 2028. At a share price of 3.40 as of 5 May 2025, this represents an annual yield of 6%.
OUTLOOK
In 2025, the Year of Community, ADNOC Distribution continues to deliver against its growth strategy as it transforms its service stations into welcoming spaces at the heart of the communities it serves while continuing to deliver sustainable shareholder value. The Company remains committed to driving operational efficiencies and sustainable growth. By accelerating its digital transformation, ADNOC Distribution is solidifying its position as the UAE's leading mobility and convenience retailer, while strategically expanding its brand presence internationally.
FINANCIAL SUMMARY
(USD Millions)
Q1 2024
Q1 2025
% Change
Gross profit
403
440
+9%
EBITDA
248
275
+11%
Underlying EBITDA
218
246
+13%
Net profit
150
174
+16%
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