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The National
06-05-2025
- Business
- The National
Adnoc Distribution's network growth and Saudi expansion fuel 16% first-quarter profit jump
Adnoc Distribution, the UAE's largest fuel and convenience retailer, posted a more than 16 per cent annual rise in its first-quarter profit, boosted by its growth in Saudi Arabia. Net profit attributable to equity holders in the three months ended March 31 hit Dh638.7 million ($174 million), driven by "strong underlying business profitability and lower finance costs", the company said on Tuesday in a regulatory filing to the Abu Dhabi Securities Exchange, where its shares trade. Revenue for the quarter edged down 3.2 per cent annually to Dh8.47 billion, partially offset by reduced fuel prices as a result of lower global oil prices in the quarter on an annual basis, but lifted by a growth in fuel volumes and higher non-fuel retail segment contribution, the company said. Earnings before interest, taxes, depreciation and amortisation – a measure of profitability – rose 11 per cent compared with last year to reach Dh1.01 billion, a record for the first quarter and the highest since Adnoc Distribution's initial public offering in 2017. Adnoc Distribution said it 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". The company opened 20 new service stations in the first quarter, bringing its network to 915 and keeping it on track to meet the target of between 40 and 50 new stations by the end of 2025, it said. In Saudi Arabia, the world's biggest oil-exporting country, Adnoc Distribution added 15 stations, growing its network to 115. Non-fuel retail transactions also increased with gross profit rising 14 per cent annually in the period from January to March to reach Dh228 million. "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," said Bader Al Lamki, chief executive of Adnoc Distribution. The company has been incorporating more technology into operations as part of efforts to improve its offering. Mr Al Lamki told The National at last year's Gitex Global technology summit that the company was developing more than 20 tools powered by artificial intelligence to further optimise operations and enhance operational efficiencies. Adnoc Distribution has also demonstrated its concept robotic arm for electric vehicle charging. But there are no plans to use the technology in the near future and the concept is aimed at future-proofing the company, Mr Al Lamki said at the time.
Al Etihad
06-05-2025
- Automotive
- Al Etihad
ADNOC Distribution reports strongest Q1 results since its IPO in 2017
6 May 2025 09:39 ABU DHABI (ALETIHAD) ADNOC Distribution reported its highest-ever first-quarter EBITDA, climbing 11% year-on-year (YoY) to $275 million (Dh1.01 billion). In a statement, the company said the net profit rose by 16% to $174 million (Dh639 million), exceeding analyst expectations and reflecting the company's expanding footprint and operational profit for Q1 2025 stood at $440 million, up 9% from the same period last year. The record results mark ADNOC Distribution's strongest first-quarter showing since its IPO in volumes reached an all-time high of 3.7 billion litres during the quarter, driven by market share gains, rising demand, and aggressive network expansion in the UAE, Saudi Arabia, and Egypt. In Saudi Arabia alone, the company contracted 15 new stations during Q1, raising its operational network in the Kingdom by 67% year-on-year to 115 non-fuel retail (NFR) segment continued to outperform, with gross profit up 14% year-on-year. The company cited a 9% increase in transactions, improved convenience store conversion rates, and growth in services such as car wash and lube change. ADNOC Rewards, the UAE's largest fuel loyalty programme, expanded to 2.4 million members—up 19% compared to Q1 2024.A total of 20 new service stations were added in Q1, bringing ADNOC Distribution's global network to 915 sites. Quick-service retail outlets also expanded by 20 units, and the company ramped up its E2GO EV charging infrastructure with 63 new points installed, raising the UAE network to 283—a 318% year-on-year on the performance, CEO Eng. Bader Saeed Al Lamki 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. As we continue to expand our network and capabilities, we remain focused on capturing new opportunities and setting new benchmarks for the mobility and convenience retail industry.' With a low net debt-to-EBITDA ratio of 0.7x and strong cash generation, ADNOC Distribution reaffirmed its commitment to shareholder returns, maintaining its $700 million annual dividend target through 2028, which equates to a 6% yield at the current share price.
