ADNOC Distribution reports strongest Q1 results since its IPO in 2017
ABU DHABI (ALETIHAD) ADNOC Distribution reported its highest-ever first-quarter EBITDA, climbing 11% year-on-year (YoY) to $275 million (Dh1.01 billion). In a statement, the company said the net profit rose by 16% to $174 million (Dh639 million), exceeding analyst expectations and reflecting the company's expanding footprint and operational efficiency.Gross profit for Q1 2025 stood at $440 million, up 9% from the same period last year. The record results mark ADNOC Distribution's strongest first-quarter showing since its IPO in 2017.Fuel volumes reached an all-time high of 3.7 billion litres during the quarter, driven by market share gains, rising demand, and aggressive network expansion in the UAE, Saudi Arabia, and Egypt. In Saudi Arabia alone, the company contracted 15 new stations during Q1, raising its operational network in the Kingdom by 67% year-on-year to 115 sites.The non-fuel retail (NFR) segment continued to outperform, with gross profit up 14% year-on-year. The company cited a 9% increase in transactions, improved convenience store conversion rates, and growth in services such as car wash and lube change. ADNOC Rewards, the UAE's largest fuel loyalty programme, expanded to 2.4 million members—up 19% compared to Q1 2024.A total of 20 new service stations were added in Q1, bringing ADNOC Distribution's global network to 915 sites. Quick-service retail outlets also expanded by 20 units, and the company ramped up its E2GO EV charging infrastructure with 63 new points installed, raising the UAE network to 283—a 318% year-on-year increase.Commenting on the performance, CEO Eng. Bader Saeed Al Lamki said: '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. As we continue to expand our network and capabilities, we remain focused on capturing new opportunities and setting new benchmarks for the mobility and convenience retail industry.'
With a low net debt-to-EBITDA ratio of 0.7x and strong cash generation, ADNOC Distribution reaffirmed its commitment to shareholder returns, maintaining its $700 million annual dividend target through 2028, which equates to a 6% yield at the current share price.
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