Adnoc Distribution to expand as earnings rise

Adnoc Distribution

Adnoc Distribution plans to open 15 to 20 more fuelling stations in 2024 after opening eight in the UAE, Saudi Arabia and Egypt in the year so far.

The expansion increased fuel and non-fuel sales, driving revenue up by over 9 percent year on year to AED8.7 billion ($2.4 billion) in the three months to March 2024.

However, growth was impacted by lower pump prices amid a yearly decline in crude oil prices.

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Adnoc Distribution is the UAE’s largest fuel and convenience retailer, listed on the Abu Dhabi Securities Exchange.

Annual net profit at the company increased by 2.3 percent to AED550 million in the first quarter. Net profit excluding UAE corporate tax reached AED607 million in Q1 2024, 13 percent higher than a year ago.

Total fuel volumes surged by 17 percent over the quarter, propelled by growth in both retail and commercial segments.

Non-fuel retail sales grew by 7 percent year on year across its UAE network.

CEO Bader Saeed Al Lamki said the company was well positioned to achieve its operational objectives for 2028, aiming to expand its network to 1,000 stations and increase the number of fast and super-fast electric vehicle charging points to at least 500.

He added that the target is to grow non-fuel transactions by 50 percent and increase the number of convenience stores by 25 percent.

“The integration of artificial intelligence, a cornerstone of our strategy, continues to yield tangible results,” Al Lamki said, adding that the “fuel demand AI model” is projected to prevent potential lost sales of over $27 million in five years.

In March the company’s shareholders approved a new five-year dividend policy, setting an annual dividend of $700 million or a minimum of 75 percent of net profit, whichever is higher.