Abu Dhabi – Mubasher: ADNOC Distribution has recorded double-digit growth in its EBITDA and net profit for the first half (H1) of 2025, exceeding analyst expectations, and announced its dividend plan, according to a press release.

The company achieved a 12.20% year-on-year (YoY) increase in net profit to $358 million in H1-25, compared to $319 million in H1-24.

ADNOC Distribution also registered its highest-ever first-half EBITDA of $566 million as of 30 June 2025, signaling a 10% annual rise from $515 million in H1-24.

The fuel distributor achieved record first-half fuel volumes of 7.62 billion liters, marking a 5.6% YoY growth.

ADNOC Distribution’s five-year growth strategy aims to deliver EBITDA growth through key strategic initiatives and focus areas by 2028, driving long-term value creation and positioning the company for sustained growth.

Dividends for H1-25

A dividend of $350 million for H1-25 is expected to be distributed in October 2025, subject to board approval.

With a robust net debt to EBITDA ratio of 0.80x at the end of H1-25, the company remains committed to its dividend policy, ensuring clear visibility on returns. ADNOC Distribution expects an annual payout of $700 million (at 20.57 fils per share) or a minimum of 75% of net profit, whichever is higher, through 2028.

At a share price of 3.70 as of 6 August 2025, this represents an annual yield of nearly 6%.

The CEO of ADNOC Distribution, Bader Saeed Al Lamki, said: “Our strong H1-25 results demonstrate the successful execution of our 2024-28 growth strategy, driven by operational excellence and customer-focused innovation. The sustained growth in EBITDA and net profit highlights our ability to scale effectively, drive value creation, and expand our leadership in mobility and convenience retail.”

Al Lamki added: “By leveraging advanced technologies, unlocking new operational efficiencies, and bringing our commitment to quality to more communities than ever before, we are well-positioned to deliver sustainable, long-term growth and superior returns for our shareholders.”

Focus Markets

In May 2025, ADNOC Distribution launched the Voyager lubricant line nationally across Egypt, expanding its distribution to third-party retail stores for the first time.

The UAE company has set a target of 3,000 points of sale in Egypt by the end of 2026, further strengthening its regional presence with Egypt remaining a core focus market for ADNOC Distribution.

ADNOC Voyager, the UAE’s number one lubricant brand by market share, is now exported to more than 47 countries around the world.

Earlier in 2025, ADNOC Distribution unveiled its first flagship service station in Egypt which is located in New Cairo. The new station features an expanded ADNOC Oasis convenience store and offers a wide range of automotive services compared to the existing 11 ADNOC-branded stations operating in the country.

Non-fuel Retail Business

ADNOC Distribution’s non-fuel retail business continues to drive strong growth, with a 14.90% YoY increase in non-fuel retail gross profit and a 10.40% YoY rise in transactions for H1-25.

This continued outperformance of non-fuel retail over fuel retail reinforces the company’s strategic focus on diversifying revenue streams and capturing growing demand for convenience services.

In addition, ADNOC Rewards, the UAE’s leading fuel and convenience loyalty program, grew by 19.50% YoY to nearly 2.50 million users.

Expansion Strategy

ADNOC Distribution continued its strategic network expansion, adding 47 new service stations H1-25, bringing its total network to nearly 940.

A majority of the new stations are located in Saudi Arabia, where the company is successfully leveraging its CAPEX-light Dealer Owned-Company Operated (DOCO) business model, which is optimized for sustainable growth. The DOCO model has enabled ADNOC Distribution to double its Saudi network YoY, from 69 to 140 stations.

Building on this momentum, the UAE firm has revised its expansion guidance upwards to 60-70 new stations by the end of 2025, with 50-60 of these located in Saudi Arabia.

This strategic expansion strengthens ADNOC Distribution’s regional footprint, enabling it to capitalize on the growing demand for mobility and convenience retail, fueling its growth trajectory and enhancing shareholder value in line with its strategic goals.

Additionally, ADNOC Distribution’s E2GO fast- and super-fast EV charging network reached a significant milestone in H1-25, with over 300 charging points now installed across the UAE. This underscores the company’s commitment to sustainable mobility and clean energy solutions, aligning with its target of growing the network to 500+ charging points by 2028.

Meanwhile, the company is on track to meet its target of adding 100 new charging points in 2025, reinforcing its strategic focus on future-proofing its business and strengthening its position as a leader in sustainable mobility infrastructure.

Digital Transformation

ADNOC Distribution is harnessing advanced AI technologies to drive strategic growth and operational efficiency. By leveraging innovations such as predictive fuel demand models, intelligent assortment, and hyper-personalized offerings, the company is transforming its operations while enhancing customer satisfaction across its value chain.

These initiatives are integral to ADNOC Distribution’s broader strategy of future-proofing its business, supporting sustainability goals and enhancing its competitive edge in an increasingly digital and data-driven market.

As part of its digital transformation, ADNOC Distribution deployed MEERAi, ADNOC’s AI-powered board advisory tool which is designed for executive use, at its most recent board meeting. MEERAi delivers real-time insights, enabling faster, data-driven decisions.

In the first quarter (Q1) of 2025, ADNOC Distribution generated its highest-ever Q1 fuel volumes which were driven by retail sales in the UAE and Saudi Arabia. Meanwhile, the net profits after tax attributable to the shareholders rose by 16% as of 31 March 2025.