ADNOC Distribution’s yearly profit drops 7% to $659 million

BY THE ARAB TODAY Feb 11, 2025

ADNOC Distribution’s yearly profit drops 7% to $659 million

ADNOC Distribution, a fuel and convenience store company in the UAE, reported a 7% drop in yearly net profit. The profit for the year was $658.9 million (AED 2.4 billion), according to its financial report on Tuesday.

ADNOC Distribution Earnings

ADNOC Distribution made a record profit of $1.1 billion (AED 3.9 billion) in 2024 before taxes and other costs, which is 4.8% higher than last year.

If we exclude inventory gains and one-time items, the company’s core profit (EBITDA) grew by 11.4% to $989 million (AED 3.6 billion). This growth was due to strong fuel sales, more non-fuel retail business, and expansion in Saudi Arabia and Egypt.

Without the new UAE corporate tax introduced in 2024, net profit would have risen by 2.4% to $725 million (AED 2.7 billion).

The company sold a record 15 billion liters of fuel in 2024, up 8.7% from last year. Fuel sales in the GCC grew by 7.6% to 11.9 billion liters.

ADNOC Distribution also grew its retail network quickly, opening 59 new service stations—three times more than its target of 15-20.

In Saudi Arabia, 30 more stations are under development, increasing the total network to 896 stations. The company now has 100 stations in Saudi Arabia and plans to add 30-40 more in 2025.

ADNOC Distribution, a part of Abu Dhabi National Oil Company (ADNOC), is ranked 41st in Forbes Middle East’s Top 100 Listed Companies for 2024.

Non-Fuel Business Growth

ADNOC Distribution’s non-fuel retail business grew strongly in 2024, with a 12.5% increase in gross profit.

Key drivers of this growth:

A 10.2% rise in non-fuel purchases, the highest in five years
A 33% jump in barista-prepared drink sales
More car wash and oil change services
New ‘Quick Service Restaurants’

The company opened 17 new convenience stores in the UAE, bringing its total to 373 in the country and 526 overall. Five of these are standalone stores outside service stations.

There was also a 10% rise in occupied and leased properties, including restaurants with both local and global brands.

The company now operates 12 Burger King outlets at its stations and plans to add 5-10 more in 2025 to diversify its income.

ADNOC Distribution also expanded its electric vehicle (EV) charging network, installing 220 charging points in 2024—four times more than in 2023. This exceeded its target of 150-200 and supports its goal of having 500+ charging points by 2028.

Dividends

ADNOC Distribution’s board has proposed a $350 million (AED 1.3 billion) cash dividend for the second half of 2024. This equals 10.285 fils per share.

Shareholders will vote on this in March 2025, and if approved, the payment will be made in April 2025.

This follows the company’s 2024-2028 dividend policy, which promises at least $700 million (AED 2.6 billion) annually or 75% of net profit, whichever is higher. The company had a free cash flow of $756 million (AED 2.8 billion) in 2024.