Adnoc Distribution delivers strong H1 2025 results with 12% net profit growth

ADNOC Distribution today reported double-digit growth in its EBITDA and net profit for the first half of 2025. The company achieved its highest-ever first-half EBITDA of $566 million, up 10.0 percent year-on-year (YoY), driving a 12.2 per cent YoY increase in net profit to $358 million. 

The company also achieved record first-half fuel volumes of 7.62 billion litres, up 5.6 per cent YoY.

 Bader Saeed Al Lamki, CEO of ADNOC Distribution, said, “Our strong H1 2025 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.

 "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.”

 ADNOC Distribution’s non-fuel retail business continues to drive strong growth, with a 14.9 per cent YoY increase in non-fuel retail gross profit and a 10.4 per cent YoY rise in transactions for the first half of 2025. 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 19.5 per cent YoY to nearly 2.5 million users.

 ADNOC Distribution continued its strategic network expansion, adding 47 new service stations in the first half of 2025, 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 optimised 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 company 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.

 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 company has set a target of 3,000 points of sale in Egypt by the end of 2026.

 Additionally, ADNOC Distribution’s E2GO fast- and super-fast EV charging network reached a significant milestone in H1 2025, with over 300 charging points now installed across the UAE. It also targets the growing of its network to over 500 charging points by 2028. The company is on track to meet its target of adding 100 new charging points in 2025.

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

 With robust net debt to EBITDA ratio of 0.80x at the end of H1 2025, 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 percent of net profit, whichever is higher, through 2028.

 At a share price of 3.70 as of 6th August 2025, this represents an annual yield of nearly 6 percent. A dividend of $350 million for H1 2025 is expected to be distributed in October 2025, subject to Board approval.

WAM