ADNOC Distribution Reports Record Profits in Q1 2025
Company's net profit rises to AED 639 million, driven by robust operational performance.
ADNOC Distribution announced significant financial results for the first quarter of 2025, achieving a net profit of AED 639 million (approximately $174 million), representing a 16% increase year-on-year.
The company reported a strong operational performance that exceeded analysts' expectations.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) saw an increase of 11%, reaching AED 1.01 billion (about $275 million).
Core EBITDA also experienced a rise of 13%, amounting to AED 904 million (around $246 million).
These results were primarily fueled by growth in both fuel and non-fuel retail sectors, reflecting the company's focus on sustainable growth and cost reduction strategies.
During the first quarter of 2025, ADNOC Distribution has expanded its network by adding 20 new service stations, bringing the total number of stations to 915, up from 846 in the same period last year.
This expansion aligns with the company's goal of adding 40 to 50 new stations by the end of 2025. The growth is driven by ADNOC Distribution’s commitment to the burgeoning retail fuel market in Saudi Arabia, allowing for rapid expansion to meet increasing demand while optimizing capital expenditures through a business model characterized by agent-owned and company-managed stations.
In Saudi Arabia, ADNOC Distribution has contracted to add 15 new service stations, resulting in a total of 115 service stations in the Kingdom, a 67% increase compared to the first quarter of 2024.
Badr Saeed Al Lamki, the CEO of ADNOC Distribution, highlighted the company's ongoing commitment to innovative and sustainable solutions for its customers.
He noted the 11% growth in EBITDA and the 16% increase in net profits underscore the company's progress in executing its five-year growth strategy for 2024-2028, as well as its commitment to operational excellence.
The first quarter of 2025 marked the highest fuel sales in the company's history, reaching 3.7 billion liters, driven by an increase in market share and expanding its network of stations in the UAE, Saudi Arabia, and Egypt.
The non-fuel retail sector continues to play a crucial role in driving growth for ADNOC Distribution, surpassing the growth rate of the fuel retail sector and enabling the company to maximize the value of its assets.
Meanwhile, the ADNOC Rewards program, the largest customer loyalty program in the country, has grown to 2.4 million members, representing a 19% increase year-on-year.
ADNOC Distribution also significantly expanded its E2GO electric vehicle charging network, adding 63 new fast and ultra-fast charging points in the first quarter of 2025. This brings the total number of installed charging points across the UAE to 283, a threefold increase.
This expansion sets the company on track to meet its goal of adding 100 new charging points by the end of 2025, aligning with its commitment to enhancing the charging network to exceed 500 points by 2028.
The company reported a strong operational performance that exceeded analysts' expectations.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) saw an increase of 11%, reaching AED 1.01 billion (about $275 million).
Core EBITDA also experienced a rise of 13%, amounting to AED 904 million (around $246 million).
These results were primarily fueled by growth in both fuel and non-fuel retail sectors, reflecting the company's focus on sustainable growth and cost reduction strategies.
During the first quarter of 2025, ADNOC Distribution has expanded its network by adding 20 new service stations, bringing the total number of stations to 915, up from 846 in the same period last year.
This expansion aligns with the company's goal of adding 40 to 50 new stations by the end of 2025. The growth is driven by ADNOC Distribution’s commitment to the burgeoning retail fuel market in Saudi Arabia, allowing for rapid expansion to meet increasing demand while optimizing capital expenditures through a business model characterized by agent-owned and company-managed stations.
In Saudi Arabia, ADNOC Distribution has contracted to add 15 new service stations, resulting in a total of 115 service stations in the Kingdom, a 67% increase compared to the first quarter of 2024.
Badr Saeed Al Lamki, the CEO of ADNOC Distribution, highlighted the company's ongoing commitment to innovative and sustainable solutions for its customers.
He noted the 11% growth in EBITDA and the 16% increase in net profits underscore the company's progress in executing its five-year growth strategy for 2024-2028, as well as its commitment to operational excellence.
The first quarter of 2025 marked the highest fuel sales in the company's history, reaching 3.7 billion liters, driven by an increase in market share and expanding its network of stations in the UAE, Saudi Arabia, and Egypt.
The non-fuel retail sector continues to play a crucial role in driving growth for ADNOC Distribution, surpassing the growth rate of the fuel retail sector and enabling the company to maximize the value of its assets.
Meanwhile, the ADNOC Rewards program, the largest customer loyalty program in the country, has grown to 2.4 million members, representing a 19% increase year-on-year.
ADNOC Distribution also significantly expanded its E2GO electric vehicle charging network, adding 63 new fast and ultra-fast charging points in the first quarter of 2025. This brings the total number of installed charging points across the UAE to 283, a threefold increase.
This expansion sets the company on track to meet its goal of adding 100 new charging points by the end of 2025, aligning with its commitment to enhancing the charging network to exceed 500 points by 2028.
Translation:
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