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Trade Arabia
06-05-2025
- Business
- Trade Arabia
Adnoc Distribution post highest Q1 EBITDA
Adnoc Distribution, the UAE's largest fuel and convenience retailer, reported a record Q1 EBITDA and fuel volumes that drove double-digit year-on-year (y-o-y) earnings 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, the company's highest first-quarter EBITDA result since its 2017 IPO. Underlying EBITDA rose 13% y-o-y to $246 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 minimising 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 litres, 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 programme, 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%, the company said. – TradeArabia News Service
Gulf Today
23-04-2025
- Business
- Gulf Today
Adnoc Distribution and noon enter into strategic partnership
Staff Reporter, Gulf Today Adnoc Distribution, the UAE's largest fuel and convenience retailer, on Wednesday announced that it is entering into a strategic partnership with noon, the Middle East's leading digital ecosystem, through a Memorandum of Understanding (MoU). As part of this initiative, Adnoc Distribution and noon will explore opportunities to enhance last-mile delivery through AI-powered logistics collaboration. The collaboration was formalized at a ceremony held at Adnoc Distribution's flagship Corniche service station in Abu Dhabi, in the presence of Dr. Sultan Ahmed Al Jaber, Managing Director and Group CEO of Adnoc and Chairman of Adnoc Distribution, and Mohamed Alabbar, Founder of noon. The partnership brings together Adnoc Distribution's physical retail strength with noon's AI-enabled logistics platform, which allows noon to optimize delivery operations through smarter inventory management, personalized recommendations and real-time route planning. Eng. Bader Saeed Al Lamki, CEO of Adnoc Distribution, said: 'This partnership marks a new chapter in Adnoc Distribution's transformation. By combining our nationwide retail network with noon's advanced digital and logistics capabilities, we are accelerating our journey to turn service stations into smart convenience hubs—powered by technology and focused on delivering real value to our customers and shareholders.' Through this collaboration, new noon Minutes distribution centers will be placed at Adnoc Distribution service stations, reducing delivery times and expanding the reach of last-mile fulfilment across the UAE. For the first time, Adnoc Oasis products ordered via the Adnoc Distribution app will be delivered by noon riders, enhancing convenience and providing seamless digital-to-doorstep service to Adnoc customers. This collaboration will also enable targeted recommendations through the Adnoc Rewards programme, demonstrating Adnoc Distribution's commitment to creating hyper-personalized experiences for its customers. Faraz Khalid, CEO of noon, said: 'Our collaboration with Adnoc Distribution is a major step forward in how we redefine convenience for customers in the UAE. By integrating our digital platforms with Adnoc Distribution's unmatched infrastructure, we will continue to deliver unmatched speed, selection and reliability to our customers across the UAE. With Adnoc Distribution as a key strategic partner, noon is stronger and even better positioned to serve our customers.' The event included a leadership walkthrough of key initiatives showcasing Adnoc Distribution's evolution into a tech-enabled retail leader, including automated EV Plug + Charge, seamless Fill & Go fueling and Click & Collect in-app ordering for Adnoc Oasis products. With 551 service stations and 373 Adnoc Oasis convenience stores across all seven emirates, Adnoc Distribution operates the most extensive mobility retail network in the UAE. The company offers a range of mobility and non-fuel services, including EV charging, car washes, and lube change, positioning it as a leader in the country's mobility retail and convenience space noon Minutes is redefining quick commerce in the region, with millions of ultra-fast deliveries across the UAE and KSA in under 15 minutes. From groceries to gadgets, it's become the go-to for everyday essentials. This new partnership with Adnoc Distribution will help bring that speed and convenience to even more people across the UAE. The collaboration underscores Adnoc Distribution's broader strategy to expand non-fuel retail, grow digital channels, and enhance operational efficiency through the deployment of AI and digital projects across its business. Adnoc Distribution is a leading mobility retailer in UAE. The Company has been providing energy for customers' journeys since 1973. Since this time, the Company has continuously been at the forefront of providing the best in customer service. Today, Adnoc Distribution enables, enhances, and energizes every customer journey thanks to digitally enabled, innovative customer experiences and high-quality non-fuel retail products. The Company operates service stations in all seven emirates in its home country, plus Saudi Arabia and Egypt, and sells lubricants in 46 countries across the world via distributors. Now in its 51st year, Adnoc Distribution has 896 service stations, 551 in the UAE, 70 in Saudi Arabia (in addition, 30 stations have been contracted and under development), and 245 in Egypt. As a non-fuel retail leader in the UAE, it operates 373 Adnoc Oasis convenience stores, 35 vehicle inspection centers, and other leading services spanning car wash, lube change, and EV charging. The Company is also the leading marketer and distributor of fuels to commercial, industrial, and government customers throughout the UAE. All figures as of 31 December 2024. Adnoc Distribution aims to be the global mobility retailer of choice, enabler of sustainable mobility, and provider of exceptional customer experiences.
