Latest news with #AdnocDistribution
Khaleej Times
07-08-2025
- Automotive
- Khaleej Times
UAE: Higher fuel sales, expansion boost Adnoc's net profit by over 12% in H1 2025
Adnoc Distribution on Tuesday reported $358 million net profit for the first half of 205, an increase of 12.2 per cent year on year, on the back of higher fuel sales and network expansion. The UAE's largest fuel and convenience retailer achieved its highest-ever first-half EBITDA of $566 million, up 10 per cent YoY. It saw a record first-half fuel volumes of 7.62 billion litres during H1 2025, up 5.6 per cent from the same period last year. Bader Saeed Al Lamki, CEO of Adnoc Distribution, said Adnoc Distribution's non-fuel retail business continues to drive strong growth, with a 14.9 per cent YoY increase in non-fuel retail gross profit and a 10.4 per cent YoY rise in transactions for the first half of 2025. 'This 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. In addition, Adnoc Rewards, the UAE's leading fuel and convenience loyalty programme, grew by 19.5 per cent YoY to nearly 2.5 million users,' he added. Network expansion Adnoc Distribution continued its network expansion between January and June 2025, bringing its total network to nearly 940. A majority of the new stations are located in Saudi Arabia, where the company is successfully leveraging its Capex-light Dealer Owned-Company Operated (DOCO) business model. The DOCO model has enabled Adnoc Distribution to double its Saudi network YoY, from 69 to 140 stations. The company has revised its expansion guidance upwards to 60 to 70 new stations by the end of 2025, with 50 to 60 of these located in Saudi Arabia. The company has set a target of 3,000 points of sale in Egypt by the end of 2026, further strengthening its regional presence. Additionally, Adnoc Distribution's E2GO fast- and super-fast EV charging network reached over 300 charging points now installed across the UAE. It aims to expand the network to over 500 charging points by 2028. The company is on track to meet its target of adding 100 new charging points in 2025. Adnoc Distribution expects an annual payout of $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 Dh3.70 as of August 6, 2025, this represents an annual yield of nearly six per cent. A dividend of $350 million for H1 2025 is expected to be distributed in October 2025, subject to board approval.
The National
07-08-2025
- Business
- The National
Adnoc Distribution's first-half profit up 12% on higher fuel volumes
Adnoc Distribution, the UAE's largest fuel and convenience retailer, posted a 12 per cent annual jump in its first-half profit, underpinned by a surge in retail fuel volumes sold. Net profit in the six months ended June climbed to $358 million, the Abu Dhabi National Oil Company unit said on Thursday in a filing to the Abu Dhabi Securities Exchange, where its shares trade. The company said it recorded its largest-ever first-half fuel volumes of 7.62 billion litres, marking a 5.6 per cent year-on-year increase. It also recorded the highest earnings before interest, taxes, depreciation and amortisation (Ebitda) – a key measure of profitability, of $566 million, up 10 per cent year-on-year. Meanwhile, revenue for the six-month period was down 2.4 per cent to $4.65 billion. 'Our strong H1 2025 results demonstrate the successful execution of our 2024-28 growth strategy, driven by operational excellence and customer-focused innovation," said Bader Al Lamki, chief executive of Adnoc Distribution. The company's net profit for the second quarter of 2025 was up nearly 9 per cent annually to $184 million, while revenue was down 1.6 per cent to $2.35 billion. Non-fuel retail transactions also increased with gross profit growing by 14.9 per cent year-on-year in the first half of 2025, driven by strong performance of convenience stores, car services, property management and lubricants businesses, the company said. Adnoc Distribution expects to distribute dividend of $350 million (10.285 fils per share) for the first half of 2025, in October this year, in line with its dividend policy, it said. Oil prices have trended upwards since May, peaking on June 19 after Israel attacked Iran, but they have fallen since. That, among other geopolitical tensions, has added to market volatility. On Monday, oil prices dropped after Opec+ agreed to another large output rise in September. Brent, the benchmark for two thirds of the world's oil, was up 0.55 per cent to $67.26 a barrel at 9.55am UAE time on Thursday. West Texas Intermediate, the gauge that tracks US crude, was trading 0.59 per cent higher at $64.73 a barrel. Brent and WTI are now down about 10 per cent in 2025. On a year-on-year basis, the benchmarks have retreated more than 15 per cent. Adnoc Distribution said on Thursday it plans to add 60-70 new fuel stations by the end of 2025, ahead of schedule, with majority of those located in Saudi Arabia, the world's biggest oil-exporting country. It added 47 new service stations in the first half of 2025, bringing its total network to nearly 940 – 556 in the UAE, 70 in Saudi Arabia (with 70 stations contracted and under development), and 243 in Egypt, Adnoc said. The growth is complemented by company's 379 Oasis convenience stores across the UAE, Saudi Arabia and Egypt, along with 37 vehicle inspection centres. Other services span car wash, lube change, with the company boasting more than 300 EV charging points installed under the E2GO brand in the UAE. "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 and superior returns for our shareholders,' said Mr Al Lamki. Adnoc Distribution has pledged to expand further, supported by continued growth in the UAE's economy, in addition to incorporating the latest technologies to boost its operational and cost efficiencies. A growing economy typically leads to increased demand for transportation services, resulting in the establishment of more fuel stations to meet growing consumption. The Emirates' economy grew by 4 per cent last year, driven by a strong expansion in its non-oil sector. Abu Dhabi's economy, in particular, expanded by 3.8 per cent annually in 2024 to reach an all-time high value of Dh1.2 trillion, state news agency Wam had reported in May.
Bloomberg
07-08-2025
- Business
- Bloomberg
Adnoc Distribution CFO: Fuel Growth Driving Bottom Line
Adnoc Distribution has reported double-digit profit growth for the first half of 2025. Net income grew 12.2% year on year to $358 million. The UAE-based fuel retailer is continuing to focus on its strategic network expansion, adding 47 new service stations. Adnoc Distribution CFO Ali Siddiqi spoke to Joumanna Bercetche on Horizons Middle East & Africa. (Source: Bloomberg)
The National
12-06-2025
- Automotive
- The National
Vehicle check-ups key as UAE summer takes toll
A 20-vehicle pile-up on the UAE's north-east in which nine people were injured has once again highlighted the crucial need to promote road safety. Police said the major incident on the road to Dibba Al Fujairah on Wednesday night was triggered when a car caught fire, causing other vehicles to slam on their breaks. Hot summer months on UAE roads can place extreme pressure on cars and buses, making regular maintenance critical to avoid breakdowns and vehicle fires. In 2023, almost 1,300 vehicle fires were recorded on the nation's roads. While not all occurred during the height of summer, high temperatures place vehicle components under more pressure, increasing the risk of fire. Poorly maintained tyres, low engine coolant levels and disintegrating wiper blades are the most common issues garages said they found in cars brought in for repairs from May to September. To help avoid breakdowns and problems on the roads, Abu Dhabi Police and Adnoc Distribution launched a free summer inspection service to keep cars on the road, and avoid unnecessary breakdowns and accidents. At 12 locations across the country, experts are offering free inspections to check a car's vital signs, including engine oil, brake fluid, coolant and air filters. A similar campaign is under way in Dubai, where police are also offering free car inspections until August 31, in partnership with AutoPro. The General Department of Traffic's awareness campaign, 'Summer Without Accidents', offers a free 10-point check-up to assess air conditioning, batteries, radiator hoses, tyres, engine oil and coolant levels, wiper blades and, importantly, the condition of seat belts. Mechanics at one garage in Dubai said there were simple checks that can be done at home every month to help avoid breakdowns and the risk of a road accident during summertime. 'Most people don't take their tyre pressures or even look in the hood, but this is something that should be done at least once a month during the summer,' said Gary Wheeler, general manager of Saluki Motorsport in Al Quoz. 'Some of the most common things we see on vehicles when they come in during the summer is problems with the coolant pipes that may not be immediately obvious when doing a quick check. 'They are usually hidden underneath certain things, like the manifolds. 'Most of the pipes on these modern cars are made of plastic, so they are constantly under expansion and contraction, so often they split. 'These problems happen year round, but it's exacerbated by the summer heat.' Road deaths The summer months can be the most dangerous on UAE roads. On average, there were 273 accidents recorded each month across the country in 2023. But despite fewer cars on the roads in the summer, there were 14 fatalities on the roads in July 2023 – the joint highest number for the year – and 173 injuries. There were a further 22 deaths in August and September, but just 16 in January and February – typically the busiest time of year in the UAE. Poor vehicle maintenance is a contributing factor to road accidents. Mr Wheeler said tyres should be checked regularly as hot roads during summer place them under considerable pressure. 'Tyre technology has got a lot better, and they're now lasting four to five years,' he said. 'The rubber some manufacturers use tends to go hard, so you don't really notice the wear. 'But you will notice radial cracks in the tyre tread area and also on the side. 'A date stamp on the tyre will tell you the month and year of manufacture, and you can find the correct tyre pressure for your vehicle with a quick online check.' Vehicle fire An overheated engine is one of the most common causes of vehicle fire. When fluids like oil and coolant rise in temperature and spill out of circulation areas, they can land on to hot parts of the engine bay and exhaust system, risking ignition. Electrical system failures are another cause of fire, with faulty car batteries holding the potential to produce sparks that can quickly ignite any fluid that may have leaked from cracked pipes. About 20 per cent of vehicle fires globally are traced back to electrical failure or malfunction. In the UAE, figures from the Ministry of Interior show there were 965 car fires in 2023, 154 fires recorded in lorries, 96 involving light transportation vehicles and 35 fires involving motorbikes. There were also a further 23 fires recorded in buses across the country. Vehicle fluids are corrosive, poisonous and flammable – with petrol igniting quickly if exposed to the smallest spark. Petrol that reaches a temperature of 257°C will ignite by itself. Thomas Edelman from Road Safety UAE said bus fires are a particular concern, but changes to fire safety regulations could help reduce their frequency. 'In recent years, the UAE has witnessed a notable number of bus fire incidents, prompting concerns about road safety and the adequacy of emergency response mechanisms,' he said. 'These incidents not only endanger lives but also pose significant challenges to public safety authorities and vehicle manufacturers. 'Understanding the causes and implementing effective fire suppression systems is paramount to mitigating risks and enhancing passenger safety.' Bus blazes In 2022, a bus fire in Karachi, Pakistan, killed 17 people, including 12 children, and injured 20 others. An investigation found the fire broke out in the bus's air-conditioning system, and an emergency exit was not working. In 2021, the UAE issued a standard for fire suppression systems in the engine compartments of all new buses and coaches. 'Most causes of vehicle fires are from maintenance issues or electrical faults,' said Sam Malins, who is chief executive of Reacton, a firm specialising in vehicle fire safety systems. 'Bus fleets with really good maintenance standards have got a lot lower chance of catching fire. 'Buses have a big problem because they've got just one or two exits. 'With 60 or 70 people on board, that can be a major problem when there is a fire on board, with usually a lot of panic.' To retrofit a fire suppression system – that detects and extinguishes any small fire at source – vehicle owners would need to spend about Dh6-7,000, according to Mr Malins. 'In the summer, if you've got fans that aren't working properly to cool the engine, you get excessive heat so it shows how important it is to have regular maintenance ahead of summer,' said Mr Malins. 'Most bus operators do a fairly good job of checking them before summer, but then there's still a lot that don't.' Although less likely to catch fire than petrol cars, electric vehicles are also at risk due to the high powered batteries on board. In 2023, the Ministry of Economy temporarily banned imports of Volkswagen electric cars made in China after dozens of vehicles had been bought, before their release by official local distributors. Although the risk of fire was low, the Volkswagen ID series vehicles had not yet been certified for use in the Gulf region, where summer temperatures can exceed 50C. Electric cars Meanwhile in the US, Chevrolet recalled about 110,000 of its Volt EV model years 2017 to 2022 after problems traced to hardware and software risked potential battery fires. Tashwill Wyngaard, diagnostics technician and EV specialist at Saluki Motorsport, said potential issues can be difficult for the vehicle owner to identify. 'Most electric vehicles are using cooling systems with high tech software and battery management for the thermal protection of the batteries,' he said. 'The best thing owners can do is try to keep the car out of the sun or to park it under cover during the summer. 'It is also helpful to not charge it in the sun and maybe not always charge it to 100 per cent, that way the battery will last longer as well. 'In the extreme heat, as with any chemical reaction, there are always potential downfalls.' The lithium batteries used by electric vehicles are cooled to between 15-30°C, but when these systems fail during periods of high temperatures, problems can occur. 'The vehicle's thermal management system is always trying to keep it within that range,' said Mr Wyngaard. 'What generally happens is the cooling system sometimes leak into the batteries, mixing with the chemicals in the battery. 'That will generally cause the battery to ignite, but that is extremely rare.' This story was first published in August, 2024
Trade Arabia
03-06-2025
- Business
- Trade Arabia
Adnoc Gas joins MSCI Emerging Market Index
Adnoc Gas will be the largest addition to the Index by market capitalisation and joins Adnoc Distribution and Adnoc Drilling which were added to the benchmark in 2021 and 2024, respectively. The company's inclusion follows its successful $2.84 billion marketed offering of 3.1 billion shares in February, which increased the number of shares available to the public by 80% and helped the stock successfully meet key eligibility criteria for entry into the Index. This marks a significant milestone in the Adnoc Gas's ongoing efforts to enhance its global investment profile, attract a broader and more diversified investor base and improve liquidity of its shares. Through their inclusion in the MSCI Index, the three Adnoc Group companies collectively raise both Adnoc's and the Abu Dhabi Securities Exchange's (ADX) global investment profile, while enhancing liquidity in the UAE market and further cementing the UAE's position as an attractive destination for foreign investment. As with Adnoc Distribution and Adnoc Drilling's addition to the Index, Adnoc Gas experienced a surge in trading on the final day before its index inclusion, attracting $469 million in capital inflows. The inclusion of Adnoc Gas in the Index also marks another milestone in Adnoc's efforts to foster growth of the UAE's capital market, which began in 2017 with the public listing of Adnoc Distribution on the ADX. Since then, Adnoc has brought another five of its subsidiaries to the public market, with a current combined market cap of around $140 billion.
