ADNOC Distribution Achieves Record-High Fuel Sales and EBITDA in Q3 2024

ADNOC Distribution (ISIN: AEA006101017; Symbol: ADNOCDIST), the largest fuel and convenience retailer in the UAE, has announced its financial results for Q3 and the first nine months of 2024. The company achieved its highest-ever nine-month EBITDA, reaching $790 million (AED 2.9 billion), with underlying EBITDA at $721 million (AED 2.65 billion)—indicating annual growth of 5.9% and 11.6%, respectively. Free cash flow for the first nine months totalled $537 million (AED 1.97 billion), maintaining a strong balance sheet with a net debt-to-EBITDA ratio of 0.56x as of September 30, 2024. This strong financial position enhances the company’s potential for growth and shareholder returns, thanks to outstanding retail and commercial performance, record-high fuel volumes, substantial non-fuel retail (NFR) contributions, and improved cost efficiency.

Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “ADNOC Distribution’s strong underlying financial performance is a testament to the Company’s solid fundamentals and its ability to execute against strategic objectives. Across the first nine months of the year, we made steady progress in expanding our domestic retail presence and market share, while also seeing growing returns from our international expansion. To continue to unlock shareholder value, the Company is pursuing AI, advanced digital technologies, and innovation-enabled growth across our entire value chain, engendering considerable OPEX savings and improvements to our industry-leading customer experience.”

Operational Efficiencies and Cost Savings

ADNOC Distribution’s EBITDA and free cash flow gains were further supported by significant operational cost savings, including like-for-like OPEX reductions of $13 million (AED 48 million) in the first nine months of 2024. This trajectory places the company on track to achieve $50 million (AED 184 million) in OPEX savings between 2024 and 2028, aligning with its long-term cost-efficiency goals.

Shareholder Returns and Dividend Policy

In October, ADNOC Distribution distributed an H1 2024 dividend of $350 million (AED 1.285 billion), consistent with its five-year dividend policy. The policy targets an annual dividend of $700 million (AED 2.57 billion), equating to 20.57 fils per share or at least 75% of net profits, whichever is greater. This commitment to shareholder returns offers long-term financial transparency. The second-half dividend for 2024 is slated for April 2025, contingent on Board and shareholder approvals.

Record Fuel Sales and Retail Expansion

In the first nine months of 2024, ADNOC Distribution achieved total fuel sales of over 11 billion liters—a 9.2% increase from the previous year—driven by network expansion, economic growth, and contributions from international operations. Non-fuel retail transactions grew by 9.4% year-on-year, with a 10.3% boost in Q3 alone. Convenience store conversions reached a five-year high of 25.5% during this period, including 25.9% in Q3. Strategic initiatives focused on premium food and beverage options, enhanced car services, and real estate optimization have solidified the company’s market position. The ADNOC Voyager brand maintained its top status in UAE’s lubricant market, expanding its reach from 34 countries to 43.

Commercial Partnerships and New Service Stations

ADNOC Distribution introduced over 60 new commercial tenants across its network in the first nine months of 2024, with plans to add 20 more by year’s end. This expansion includes additional stores, restaurants, and car services. The company aims to double the number of property units occupied by international and regional food and beverage brands by the end of 2025. Additionally, 19 new service stations were added, bringing the total to 855 across the UAE, KSA, and Egypt, surpassing the full-year goal of 15–20 new stations. Eight new stations in Dubai cater to trucks, developed in collaboration with Dubai’s Road and Transport Authority (RTA).

Electric Vehicle (EV) Charging Expansion

By September 30, 2024, ADNOC Distribution’s UAE network included 112 fast and super-fast EV charging points, more than double the 53 units available at the end of 2023. The company aims to increase this to 150–200 charging points by the end of 2024 as part of its strategy to support sustainable mobility.

Investment in Advanced Technology and Artificial Intelligence (AI)

ADNOC Distribution is actively integrating AI and advanced technologies into all business segments to drive growth, enhance operational efficiency, and elevate customer experience. The company is currently working on over 20 AI-focused projects, emphasizing data-driven decision-making as a key element of its future-proofing initiatives.

Commitment to Environmental, Social, and Governance (ESG) Standards

In support of its ESG leadership, ADNOC Distribution has established an ESG subcommittee within the Board’s Executive Committee, ensuring oversight at the highest governance level. Chaired by an independent board member, this committee will consist of experts in ESG performance. In October 2024, ADNOC Distribution received the Dubai Chamber of Commerce’s ESG label, becoming the first fuel retailer in the Middle East to earn this recognition.

Strategic Growth and Future Outlook

ADNOC Distribution’s strategic plans are grounded in a robust financial base and strong cash generation. The company has allocated $250–$300 million in CAPEX for 2024, with 70% directed toward growth-focused initiatives. Since its IPO in 2017, ADNOC Distribution has returned substantial value to shareholders through dividends, totaling $4.4 billion. The company's solid financial results and operational performance in 2024 position it well for the next phase of accelerated growth.