ADNOC Distribution Reports Record EBITDA Of $1.05 Billion For FY 2024 Driven By Fuel Volume Growth

ADNOC Distribution has announced its 2024 financial results, showcasing a record Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of $1.05 billion (AED3.86 billion). This marks a 4.8% increase compared to the previous year. The underlying EBITDA, excluding inventory gains and one-off items, rose by 11.4% to $989 million (AED3.63 billion). This achievement highlights strong fuel volumes and growth in non-fuel retail sectors.

The company's international operations in Saudi Arabia and Egypt have significantly contributed to this performance. ADNOC Distribution reported a Return On Capital Employed of 28.8% for 2024, the highest since its public listing. This reflects efficient capital allocation, enhancing shareholder value incrementally.

In 2024, ADNOC Distribution expanded its retail network by adding 59 new service stations, surpassing its annual target of 15-20 stations. This expansion includes 30 stations under development in Saudi Arabia, bringing the total network to 896 service stations. The company plans to further increase its presence in Saudi Arabia with an additional 30 to 40 stations by 2025.

The company's fuel volumes in GCC countries increased by 7.6%, reaching 11.9 billion litres in 2024. Overall fuel volumes hit a record high of 15 billion litres, an increase of 8.7% from the previous year due to higher mobility and international expansion.

ADNOC Distribution achieved $18 million (AED66 million) in operational cost savings in 2024 as part of its goal to reduce like-for-like OPEX by $50 million (AED184 million) between 2024 and 2028. These savings demonstrate progress towards enhancing operational efficiency.

Bader Saeed Al Lamki, CEO of ADNOC Distribution, stated: "ADNOC Distribution's strong performance in 2024 underscores our strategic focus on delivering value for both our customers and shareholders. By driving operational efficiency, embracing digital transformation, and expanding our market presence, we are well-positioned to achieve the ambitious goals of our five-year strategy."

Electric Vehicle Charging Network Expansion

The company also made strides in expanding its electric vehicle charging network by installing 220 charging points at key locations in 2024—a fourfold increase from the previous year. This exceeded their guidance of installing between 150-200 charging points for the year.

This expansion supports ADNOC Distribution's aim to deploy over 500 charging points by the end of 2028, aligning with their commitment to sustainable growth.

Financial Performance and Shareholder Returns

Excluding UAE corporate income tax effects introduced in 2024, net profit would have grown by 2.4% year-on-year to $725 million (AED2.66 billion). However, reported net profit saw a decrease of 7%. Despite this decline, ADNOC Distribution remains committed to delivering sustainable growth and attractive returns for shareholders.

The Board has proposed a cash dividend of $350 million (AED1.285 billion), equivalent to 10.285 fils per share for the second half of the year. This is subject to approval at the General Assembly Meeting scheduled for March 2025 and is expected to be paid in April.

With inputs from WAM