ADNOC Distribution has recorded a 12.2% increase in net profit for H1 2025, reaching $358 million—beating analyst projections—fuelled by the stellar performance of its non-fuel retail arm, as per results shared on Thursday.
Performance Overview
- The Abu Dhabi-based company, which leads the UAE’s fuel and convenience retail market, also achieved a record half-year EBITDA of $566 million, reflecting a 10% rise year-on-year, per its ADX disclosure.
- Fuel volumes climbed 5.6% to 7.62 billion litres—also a half-year high.
- This momentum aligns with ADNOC Distribution’s five-year strategy focused on EBITDA growth through enhancements in both retail and mobility segments.
- The non-fuel retail sector was particularly strong, delivering a 14.9% year-on-year increase in gross profit and a 10.4% jump in transactions. ADNOC Rewards membership rose 19.5% to 2.5 million users.
- Financially, the company maintains a solid position with a net debt-to-EBITDA ratio of 0.80x.
- Its CAPEX guidance remains $250–300 million annually, ensuring the resources to continue growing well into the second half of 2025 and beyond.
Dividend Expectations
ADNOC Distribution reiterated its dividend policy on Thursday, which commits to a $700 million annual dividend or 75% of net profit—whichever figure is higher—through to 2028.
An interim dividend of $350 million is set for October, pending board approval. At a share price of $1.01 (AED 3.7) on 6 August, this equates to an approximate 6% yield.
Operational Growth
47 new service stations were opened during H1, growing the network to nearly 940 locations. A large share of this expansion took place in Saudi Arabia, where the firm’s DOCO model continues to scale. The Saudi station count more than doubled from 69 to 140 over the year.
As a result, full-year guidance was increased to 60–70 new stations in 2025, including 50–60 in the Kingdom.
May saw the launch of ADNOC’s Voyager lubricant brand in Egypt, aiming for 3,000 distribution points by 2026. The brand, UAE’s market leader, is now present in more than 47 global markets.
Accelerating EV Rollout
The E2GO electric vehicle charging initiative crossed the 300-unit mark for fast and ultra-fast chargers in the UAE during H1. ADNOC Distribution aims to surpass 500 units by 2028 and install 100 new chargers this year.
