ADNOC Distribution Achieves Strong H1 2025 Results With 12.2% Net Profit Growth And Record EBITDA

ADNOC Distribution has reported significant growth in its financial performance for the first half of 2025. The company achieved a record EBITDA of $566 million, marking a 10% increase compared to the previous year. This growth contributed to a 12.2% rise in net profit, reaching $358 million. Additionally, ADNOC Distribution recorded its highest-ever fuel volumes for the period, totalling 7.62 billion litres, which is a 5.6% increase year-on-year.

The company's CEO, Bader Saeed Al Lamki, highlighted the success of their growth strategy for 2024-28. He stated, "Our strong H1 2025 results demonstrate the successful execution of our 2024-28 growth strategy, driven by operational excellence and customer-focused innovation." This strategy focuses on operational efficiency and customer-centric innovations to drive value creation and expand leadership in mobility and convenience retail.

ADNOC Distribution's non-fuel retail sector also showed robust growth with a 14.9% increase in gross profit and a 10.4% rise in transactions during the first half of 2025. This performance underscores the company's strategic focus on diversifying revenue streams and meeting the growing demand for convenience services.

The company expanded its service station network by adding 47 new stations in the first half of 2025, bringing the total to nearly 940 stations. Most new stations are located in Saudi Arabia, where ADNOC Distribution is effectively using its CAPEX-light Dealer Owned-Company Operated (DOCO) model for sustainable growth. This model has allowed them to double their network in Saudi Arabia from 69 to 140 stations year-on-year.

In May 2025, ADNOC Distribution launched its Voyager lubricant line across Egypt, marking its entry into third-party retail stores there for the first time. The company aims to establish 3,000 points of sale in Egypt by the end of 2026.

Commitment to Sustainable Growth

The E2GO fast- and super-fast EV charging network reached over 300 charging points across the UAE by mid-2025. ADNOC Distribution plans to expand this network to over 500 charging points by 2028 and aims to add another 100 charging points within this year.

As part of its digital transformation efforts, ADNOC Distribution implemented MEERAi at its most recent Board meeting. This AI-powered board advisory tool provides real-time insights for faster decision-making based on data analysis.

Financial Stability and Shareholder Returns

The company maintains a strong financial position with a net debt to EBITDA ratio of 0.80x as of mid-2025. ADNOC Distribution remains committed to its dividend policy, expecting an annual payout of $700 million or at least 75% of net profit through to 2028. At a share price of AED3.70 as of August 6th, this translates into an annual yield close to six percent.

A dividend payment of $350 million for H1 2025 is anticipated for distribution in October, pending Board approval.

With inputs from WAM