ADNOC Distribution Achieves $174 Million Net Profit With 16% Year-on-Year Growth In Q1 2025

ADNOC Distribution has reported a strong start to 2025, with record-breaking Q1 results. The company's EBITDA and fuel volumes have seen significant growth, leading to a double-digit increase in earnings compared to the previous year. Net profit rose by 16% to $174 million (AED639 million), while EBITDA increased by 11% to $275 million (AED1.01 billion), marking the highest first-quarter EBITDA since its IPO in 2017.

In the first quarter of 2025, ADNOC Distribution expanded its network significantly, adding 20 new service stations. This brings the total number of stations to 915, up from 846 in the same period last year. The company is on track to meet its goal of opening 40-50 new stations by the end of the year. A key focus has been on Saudi Arabia's dynamic fuel retail market, where ADNOC Distribution has adopted a Dealer Owned-Company Operated (DOCO) model to expand efficiently.

Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, stated, "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." He highlighted the company's progress against its 2024-2028 growth strategy and commitment to operational excellence.

The company achieved its highest-ever first-quarter fuel volume of 3.7 billion litres due to market share growth and increasing demand across the UAE, Saudi Arabia, and Egypt. Non-fuel retail (NFR) continues to be a major growth driver, surpassing fuel growth rates and enhancing asset value extraction.

NFR gross profit increased by 14% year-on-year in Q1 2025, driven by a rise in transactions and improved convenience store conversion rates. The ADNOC Rewards programme saw a membership increase of 19%, reaching 2.4 million members. This loyalty programme is now the largest in the UAE for fuel and convenience.

ADNOC Distribution also expanded its quick-service retail outlets by adding 20 new units in Q1 2025. This expansion solidifies its position as the largest retail property network in the UAE with a total of 1,165 units nationwide.

Advancements in EV Charging Infrastructure

The company made significant strides in expanding its E2GO public EV charging network during Q1. It added 63 new fast and super-fast charging points across the UAE, bringing the total number of charging points to 283—a year-on-year increase of 318%. ADNOC Distribution aims to add another 100 charging points by year-end as part of its plan to reach over 500 points by 2028.

In Saudi Arabia alone, ADNOC Distribution contracted an additional 15 service stations in Q1, increasing its network there by 67% compared to Q1 last year. This expansion aligns with their strategy for rapid growth while managing capital expenditure effectively through their DOCO model.

The company's robust performance reflects strategic efforts towards sustainable growth and cost efficiency across both fuel and non-fuel segments. As they continue expanding their network and capabilities, ADNOC Distribution remains focused on seizing new opportunities within mobility and convenience retail sectors.

With inputs from WAM