Adnoc Distribution raises expansion targets and dividend outlook

31/10/2025 07:08 AST

Adnoc Distribution has reported its strongest quarterly earnings since its IPO in 2017, with Q3 2025 EBITDA reaching $319 million, up 15.9 per cent year-on-year, and net profit climbing 21.5 per cent to $221 million. The company also posted record nine-month results, with EBITDA rising 12 per cent to $885 million and net profit increasing 15.6 per cent to $579 million.

The UAE's largest fuel and convenience retailer attributed the performance to strong fuel volumes, network expansion, and growth in non-fuel retail. Fuel volumes for the first nine months of the year hit 11.7 billion litres, the highest in the company's history.

Adnoc Distribution added 85 new service stations in the first nine months of 2025, including 72 in Saudi Arabia, marking a 150 per cent year-on-year increase in its network there. The company has now raised its full-year expansion target to 90-100 new stations, up from the previous guidance of 60-70, with 80-90 of those expected in the Kingdom.

At the Adnoc Group's inaugural Investor Majlis event, the company also announced plans to extend its dividend policy to 2030, subject to shareholder approval. Starting Q1 2026, dividends will be paid quarterly. The revised policy commits to a minimum of $4.9 billion in dividends between 2023 and 2030, with annual payouts of $700 million or at least 75 per cent of net profit, whichever is higher.

CEO Bader Saeed Al Lamki said the results reflect Adnoc Distribution's transformation into a mobility and convenience retail leader. "Our record performance and expanded network demonstrate the strength of our business and confidence in our long-term growth strategy," he said. "We are building a flexible platform that responds to evolving customer needs while creating sustainable value for shareholders."

Non-fuel retail continued to gain momentum, with Q3 gross profit up 14.7 per cent year-on-year. The company recorded 39.6 million non-fuel retail transactions in the first nine months, a 10.2 per cent increase, and achieved its highest convenience store conversion rate since 2021.

Adnoc Distribution also relaunched its convenience store brand as 'Oasis by Adnoc', offering upgraded food and beverage options, including barista-crafted coffee and healthier choices. The refresh aims to position Oasis as the UAE's go-to destination for gourmet experiences on the move.

The company's lubricant brand, Adnoc Voyager, expanded its global footprint to 50 export markets, while its E2GO network of EV charging points grew to 368 across the UAE. Adnoc Distribution is also advancing its AI-native transformation, with over 20 AI-powered initiatives deployed or in development.

With nearly 980 service stations across the UAE, Saudi Arabia, and Egypt, Adnoc Distribution is focused on innovation, regional growth, and customer-centric execution to redefine convenience and mobility in the region.

Khaleej Times