ADNOC Distribution Approves $700 Million Dividend For 2024 Amid Strong Financial Performance

ADNOC Distribution has announced that its shareholders approved all agenda items at the Annual General Assembly Meeting. This includes a final cash dividend of $350 million (AED1.285 billion) for the second half of 2024, to be distributed in April 2025. The total annual dividend for 2024 amounts to $700 million (AED2.57 billion), yielding 6.1 percent based on the closing share price of AED3.39 on 25th March 2025.

The company's five-year growth strategy, introduced in 2024, focuses on domestic expansion, international platform development, and future-proofing its business model. This strategy led to a record EBITDA of $1.05 billion (AED3.86 billion) in 2024, marking a 5 percent increase from the previous year. The growth was driven by record fuel volumes and strong non-fuel retail performance, with significant contributions from operations in Saudi Arabia and Egypt.

In 2025, ADNOC Distribution plans to install around 100 additional fast and super-fast EV charging points across the UAE as part of its commitment to future mobility solutions. The company aims to expand its E2GO network to include 500 EV charging points by 2028. Additionally, ADNOC Distribution is targeting an increase in non-fuel transactions by 50 percent and aims to double the number of properties occupied by top food and beverage brands compared to the end of 2023.

Bader Saeed Al Lamki, CEO of ADNOC Distribution, stated that the company is committed to leading the future of mobility and convenience retail by expanding international operations and focusing on high-growth areas. He mentioned that throughout 2025, ADNOC Distribution will continue working towards its strategic objectives, including reaching a network of 1,000 service stations.

ADNOC Distribution achieved a milestone in Saudi Arabia by reaching 100 service stations using a smart Dealer-Owned, Company-Operated (DOCO) model in 2024. This scalable approach involves partnering with local dealers who own service stations while ADNOC manages operations. By 2029, the company aims for at least 300 stations across Saudi Arabia, positioning itself among the top five fuel and convenience retailers in that market.

The company's strategic expansion plans include adding between 40-50 new service stations in 2025, with most located in Saudi Arabia. By leveraging AI-driven data analytics and personalised engagement strategies, ADNOC Distribution is enhancing its digital transformation efforts to strengthen its position as a leading multi-energy mobility retailer in the UAE while expanding internationally.

Financial Performance and Shareholder Returns

Dr Sultan Ahmed Al Jaber, Chairman of ADNOC Distribution, highlighted that "Financially, 2024 was another record-breaking year." He noted that their five-year strategy achieved significant milestones that strengthened their market position for long-term success. For two consecutive years now, their EBITDA surpassed $1 billion due to increased fuel volumes and sustained non-fuel retail growth.

The company's ability to generate strong free cash flow is evident from its $756 million (AED2.78 billion) total in 2024. Since going public in 2017, ADNOC Distribution has distributed $4.8 billion (AED17.4 billion) in dividends while delivering a total shareholder return of 92 percent.

Commitment to Community Engagement

In line with community engagement efforts during the Year of Community initiative, ADNOC Distribution is redefining its service stations as welcoming spaces within communities rather than just functional stops. By enhancing customer experiences at these locations through various initiatives such as increasing property yields through directly-operated franchise stores or scaling up convenience store numbers by over one-fourth by year-end compared against figures from late-2023 levels - they aim for better integration into local communities served.

This year's dividend distribution marks an increase from $200 million distributed during their first year as a listed company—now standing at $700 million—a testament not only towards financial growth but also towards fulfilling commitments made under their current dividend policy which ensures annual payouts remain either above or equal-to-$700-million-or-minimum-of-seventy-five-percent-net-profit-whichever-higher-policy-guidelines-set-for-period-between-years-twenty-twenty-four-through-twenty-twenty-eight-inclusively-speaking-of-course!

With inputs from WAM