ADNOC Distribution, the UAE’s largest fuel and convenience retailer, has announced a record-breaking financial performance for the fiscal year 2024, reporting its highest-ever delivery of fuel and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1.05 billion (AED 3.86 billion), reflecting a 4.8% year-on-year increase.
EBITDA is a key financial metric that indicates a company’s profitability by measuring earnings before deducting expenses related to financing and non-cash costs, providing a clearer picture of core business performance.
Despite the impact of the UAE corporate income tax, which took effect in 2024, ADNOC Distribution’s net profit would have grown by 2.4% year-on-year to $725 million (AED 2.66 billion) on a like-for-like basis. However, after accounting for the new tax structure, reported net profit saw a 7.0% year-on-year decrease.
ADNOC Distribution delivered record fuel volumes of 15.0 billion litres in 2024, marking an 8.7% increase year-on-year, driven by heightened mobility and expansion in international markets such as Saudi Arabia and Egypt. The company’s GCC fuel volumes alone grew by 7.6% year-on-year to 11.9 billion litres.
The company aggressively expanded its retail network, adding 59 new service stations in 2024, including 30 stations under development in Saudi Arabia. This exceeded ADNOC Distribution’s initial guidance of 15-20 new stations, bringing its total network to 896 service stations. Notably, the company’s presence in Saudi Arabia grew to 100 service stations, with plans to add another 30 to 40 stations in 2025.
ADNOC Distribution’s non-fuel retail business demonstrated double-digit growth, with gross profit increasing 12.5% year-on-year. This was driven by a 10.2% rise in non-fuel transactions, the highest convenience store conversion rate in five years, and a 33% increase in barista-prepared drinks sales. The company expanded its car wash and lube change services and introduced additional Quick Service Restaurants (QSRs).
The company added 17 new convenience stores in the UAE, bringing its total network to 373 convenience stores locally and 526 across its regional operations. This included five standalone stores, marking a strategic move to capitalise on retail growth beyond service stations.
Furthermore, ADNOC Distribution increased its portfolio of occupied and awarded properties by 10% in 2024, including partnerships with international and local restaurant brands. The company currently hosts 12 Burger King outlets at its service stations and plans to open an additional 5-10 restaurants in 2025.
Excluding inventory gains and one-off items, underlying EBITDA reached $989 million (AED 3.63 billion), an increase of 11.4% year-on-year, highlighting strong operational efficiency and expansion. The company also reported a record Return on Capital Employed (ROCE) of 28.8%, its highest since its public listing, reinforcing its effective capital allocation strategy and value creation for shareholders.
Sustainability and Digital Investments
The company continued its expansion into electric vehicle (EV) infrastructure, installing 220 EV charging points in 2024, a fourfold increase compared to 2023. This surpassed its guidance of 150-200 charging points for the year and supports its goal of deploying 500 charging points by 2028.
ADNOC Distribution also integrated AI-driven tools in 2024 to optimise fuel delivery, enhance customer insights, and improve operational efficiency. The ADNOC Rewards loyalty program grew to 2.3 million members, an 18.5% year-on-year increase, further strengthening customer engagement and brand loyalty.
Financial Outlook and Shareholder Returns
ADNOC Distribution’s operational efficiencies resulted in $18 million (AED 66 million) in like-for-like operational cost (OPEX) savings in 2024. This is a step towards its $50 million (AED 184 million) cost reduction target by 2028.
The Board of Directors has recommended a $350 million dividend payout, equivalent to 10.285 fils per share, for the second half of 2024, subject to shareholder approval. This reaffirms ADNOC Distribution’s commitment to delivering consistent shareholder returns while maintaining financial stability and growth momentum.
CEO Outlook
Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, stated: “Our strong performance in 2024 reflects our strategic focus on operational excellence, digital transformation, and market expansion. With a clear roadmap ahead, we are well-positioned to sustain our robust growth trajectory and explore new opportunities in both domestic and international markets.”
