Adnoc Distribution Reports Earnings Over USD 1 Billion And Plans Expansion To 1,000 Stations By 2028

Adnoc Distribution has reported that its earnings before interest, taxes, depreciation, and amortisation (EBITDA) exceeded US$1 billion for the second year in a row. This achievement highlights the company's strong operational base and commitment to delivering substantial returns to shareholders. The company is targeting a return on investment of more than 6 percent.

Bader Saeed Al Lamki, the Chief Executive Officer of Adnoc Distribution, stated that their solid financial standing allows them to explore new investment opportunities beyond their current markets. This strategy aims to create additional value for shareholders and maximise returns.

Since its listing on the Abu Dhabi Securities Exchange in 2019, Adnoc Distribution has consistently grown. It has expanded from its domestic market into promising regional markets such as Saudi Arabia and Egypt. Currently, the company operates 900 service stations and plans to increase this number to 1,000 by 2028.

The CEO emphasised their focus on enhancing non-fuel services like Adnoc Oasis convenience stores, car wash stations, and vehicle inspection centres. Recently, new inspection centres were opened in shopping malls as part of the UAE's Year of the Community initiative to offer greater convenience to customers.

Al Lamki highlighted Adnoc Distribution's commitment to sustainable mobility by operating around 200 electric vehicle charging points across the UAE. The company plans to increase this number to 500 high-power chargers by 2028. These chargers are among the fastest available, capable of charging a battery from 20 to 80 percent quickly.

The CEO also mentioned that Adnoc Distribution enhances customer experience through artificial intelligence and its smart Adnoc app. This app provides home delivery services in collaboration with strategic partners like Noon, a UAE-based platform.

Operations in High-Demand Markets

Adnoc Distribution currently operates in three major markets known for high population density, developed infrastructure, and increasing energy demand. The company sees further growth opportunities ahead. In Saudi Arabia, it runs 100 service stations while operating 244 stations in Egypt.

In Egypt, Adnoc Distribution has also started manufacturing lubricants as part of its ongoing expansion efforts in this market. Al Lamki noted that these initiatives align with their strategy for continued growth and development.

The company's achievements reflect its strategic focus on expanding operations and enhancing services while maintaining a robust financial position. These efforts aim to deliver strong shareholder returns and explore new opportunities for growth beyond existing markets.

With inputs from WAM