ADNOC Distribution, listed on the Abu Dhabi Securities Exchange, announced its financial results for the third quarter and the first nine months of 2024.
ADNOC Distribution reported its highest ever EBITDA for the nine-month period, at AED 2.9 billion (US$ 790 million), while underlying EBITDA was AED 2.65 billion (US$ 721 million), reflecting an increase of 5.9 percent and 11.6 percent, respectively, compared to last year.
The company also achieved net profits of AED 1.84 billion (about $501 million), and the company's free cash flow during this period amounted to AED 1.97 billion ($537 million).
The company maintained a strong balance sheet, with a net debt to EBITDA ratio of 0.56x as of September 30, 2024.
This financial position enhances the company’s ability to continue growth and distribute generous dividends to shareholders. These outstanding results are due to the strong performance in the retail and commercial sectors, including recording the highest fuel sales in the company’s history during the nine-month period, in addition to strong contributions from the non-fuel retail sector and improvements in cost efficiency.
These results were supported by significant savings in operating expenses on a like-for-like basis, amounting to AED 48 million ($13 million) during the first nine months of 2024.
These savings are expected to reach AED 184 million ($50 million) between 2024 and 2028.
Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “ADNOC Distribution’s strong financial performance reflects the company’s strong foundations and its ability to achieve its objectives. During the first nine months of this year, we have achieved remarkable progress in expanding our local network and increasing our market share, in addition to achieving increasing returns from our international expansion.”
He added: “We aim to enhance shareholder value by employing artificial intelligence, digital technologies and innovation at all stages of the value chain, which will contribute to achieving significant savings in operating expenses and improving the industry-leading customer experience.”
In October 2024, the first half-year dividends of AED 1.285 billion ($350 million) were distributed, in accordance with the approved five-year dividend distribution policy, which stipulates the distribution of annual dividends of AED 2.57 billion ($700 million), equivalent to 20.57 fils per share, or no less than 75 percent of net profits, whichever is higher, which provides a clear long-term vision for dividend distributions to shareholders.
The second half 2024 dividend is scheduled to be paid in April 2025, subject to the discretion of the Board of Directors and shareholder approval.
The company’s fuel sales exceeded 11 billion litres during the first nine months of the year, recording a 9.2 per cent increase year-on-year, thanks to network expansion, economic growth and increased contributions from the company’s operations in international markets.
Non-fuel retail transactions also grew by 9.4 percent year-on-year during the period, with an increase of 10.3 percent in the third quarter alone.
The conversion rate from gas stations to retail stores rose to 25.5 percent during the period - the highest level for this period in five years, compared to 25.9 percent in the third quarter.
Key initiatives to drive growth include expanding the company’s food and beverage offering, improving its car care services, and strategically utilizing real estate to strengthen the company’s position in the market.
ADNOC Voyager has maintained its leading position as the number one lubricant brand in the UAE in terms of market share, and is now available in 43 countries, compared to 34 countries at the same time last year.
During the first nine months of 2024, ADNOC Distribution added more than 60 commercial tenants to its network, including the opening of new stores and restaurants, in addition to car care services, with plans to add another 20 tenants before the end of the year.
The company aims to double the number of real estate units leased to leading brands in the food and beverage sector, both regional and global, by the end of 2025.
The company also added 19 new service stations during the period, bringing the total number to 855 stations in the UAE, Saudi Arabia and Egypt, exceeding its target for the year of adding between 15 and 20 stations ahead of schedule.
Among these stations, 8 service stations were opened in Dubai during the third quarter, dedicated to serving trucks in cooperation with the Roads and Transport Authority in Dubai.
By September 30, 2024, the number of fast and ultra-fast charging points in ADNOC Distribution’s network in the UAE will have increased to 112 points, more than double the number recorded at the end of 2023, which was 53 charging points.
The company plans to increase the number to between 150 and 200 charging points by the end of this year, while ADNOC Distribution continues to modernize and improve the competitiveness of its business and keep pace with the future through more than 20 projects focusing on artificial intelligence, as these advanced technologies are integrated into various business sectors.
These projects aim to enhance data-driven decision-making, increase growth, raise operational efficiency, and provide a superior customer experience. ADNOC Distribution’s strategy is based on a strong financial base and its ability to achieve stable cash flows.
To fuel growth, the company has earmarked $250 million to $300 million in capital expenditures for 2024, with 70 percent of that amount going to growth-focused initiatives. Since its IPO in 2017.
ADNOC Distribution has delivered significant financial returns to shareholders through increased market value and sustainable dividend distributions, having distributed approximately $4.4 billion to date. ADNOC Distribution is ideally positioned to lead a new phase of accelerated strategic growth, based on its strong financial performance and outstanding operational results over the past nine months.
