A 4.8 per cent year-on-year increase in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) lifted ADNOC Distribution to a record $1.05 billion – crossing the billion-dollar mark for the first time in its history.
Increasing fuel volumes, significant non-fuel retail growth, and increasing contributions from international operations in Saudi Arabia and Egypt were some of the factors that led to the company’s record-breaking performance.
Fuel volumes grew 8.7 per cent to 15 billion litres – which is another record. The non-fuel retail business experienced a double-digit gross profit increase of 12.5 per cent.
ADNOC Distribution reports strong growth
The UAE’s largest fuel and convenience retailer said underlying EBITDA, excluding inventory gains and one-off items, reached $989 million (AED 3.63 billion), an increase of 11.4 per cent YoY.
The company clocked revenue of AED 35.45 billion ($9.65 billion), which was up 2.4 per cent YoY.
Gross profit stood at AED 6.21 billion ($1.69 billion), up 6.5 per cent despite lower inventory gains of AED 254 million ($69.16 million) compared to AED 339 million ($97.31 million) in 2023. Net profit, excluding the impact of the UAE corporate income tax which came into effect in 2024, would have grown by 2.4 per cent to $725 million (AED 2.66 billion), but decreased by 7 per cent because of the tax.
The company saved $18 million (AED 66 million) in like-for-like operation expenditure in 2024, which is a significant progress towards achieving its objective of $50 million (AED 184 million) in like-for-like OPEX reductions between 2024 and 2028.
Bader Saeed Al Lamki, CEO of ADNOC Distribution, commented: “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.”
Expanding retail and EV networks
In 2024, ADNOC Distribution expanded its retail network, adding 59 new service stations across the network, including 30 stations under development in Saudi Arabia. The network growth was over three times its full-year guidance of 15-20 new stations. It now has a total network of 896 service stations.
ADNOC Distribution has also been able to accelerate its network expansion in Saudi Arabia, growing the number of service stations to 100.
In the non-fuel business, barista-prepared drinks increased by 33 per cent, car wash and lube change network were upgraded, and new Quick-Service Restaurants were added. ADNOC Distribution added 17 new convenience stores in the UAE, taking the company’s convenience stores network in the UAE to 373, and to 526 across its total network.
The company’s EV charging network also saw significant expansion, with 220 charging points installed at strategic locations in 2024 – a four-fold increase compared to 2023. This exceeded the guidance of 150-200 charging points for the year and advanced its goal of deploying over 500 charging points by 2028.
The board of directors recommended a $350 million dividend, equivalent to 10.285 fils per share, for the second half of 2024.
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