ADNOC Distribution has reported double-digit growth in both its EBITDA and net profit for the first half of 2025, surpassing analyst expectations, according to a statement.
The company reported its highest-ever first-half EBITDA of $566 million, reflecting a year-on-year (YoY) increase of 10.0 percent, which propelled a 12.2 percent YoY rise in net profit to $358 million. Additionally, the company recorded first-half fuel volumes of 7.62 billion liters, marking a 5.6 percent YoY increase.
This robust performance in H1 signifies a pivotal milestone in ADNOC Distribution’s five-year growth strategy, which is designed to deliver EBITDA growth through key strategic initiatives and focus areas by 2028, fostering long-term value creation and positioning the company for sustained growth.
Strong performance in non-fuel retail
Bader Saeed Al Lamki, CEO of ADNOC Distribution, stated: “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 experience substantial growth, with a 14.9 percent YoY increase in non-fuel retail gross profit and a 10.4 percent YoY rise in transactions for the first half of 2025. This consistent outperformance of non-fuel retail over fuel retail underscores the company’s strategic focus on diversifying revenue streams and capturing the increasing demand for convenience services. Moreover, ADNOC Rewards, the UAE’s premier fuel and convenience loyalty program, grew by 19.5 percent YoY to nearly 2.5 million users.
The company continued its strategic network expansion by adding 47 new service stations in the first half of 2025, bringing its total network to nearly 940. A significant portion of these new stations is situated in Saudi Arabia, where the company is effectively utilizing its CAPEX-light Dealer Owned-Company Operated (DOCO) business model, optimized for sustainable growth. This DOCO model has enabled ADNOC Distribution to double its Saudi network YoY, increasing from 69 to 140 stations.
Read more: ADNOC Distribution reports 16 percent net profit increase to $174 million in Q1 2025
Targeting 3,000 points of sale
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 anticipated to be located in Saudi Arabia. This strategic expansion reinforces ADNOC Distribution’s regional presence, allowing it to capitalize on the rising demand for mobility and convenience retail, thereby fueling its growth trajectory and enhancing shareholder value in alignment with its strategic objectives.
In May 2025, ADNOC Distribution launched the Voyager lubricant line nationally across Egypt, marking its distribution expansion 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, further solidifying its regional presence. Egypt remains a core focus market for ADNOC Distribution, as the company continues to broaden its global footprint. ADNOC Voyager, the UAE’s leading lubricant brand by market share, is now exported to over 47 countries worldwide.
Additionally, ADNOC Distribution’s E2GO fast- and super-fast EV charging network reached a significant milestone in H1 2025, with over 300 charging points installed across the UAE. This achievement underscores the company’s commitment to sustainable mobility and clean energy solutions, aligning with its goal of expanding the network to 500+ charging points by 2028. The company is further on track to meet its target of adding 100 new charging points in 2025, reinforcing its strategic focus on future-proofing its business and solidifying its position as a leader in sustainable mobility infrastructure.
Leveraging AI for strategic growth
Also, ADNOC Distribution is leveraging advanced AI technologies to drive strategic growth and enhance operational efficiency. By employing innovations such as predictive fuel demand models, intelligent assortment, and hyper-personalized offerings, the company is transforming its operations while improving customer satisfaction throughout its value chain. Furthermore, these initiatives are integral to ADNOC Distribution’s broader strategy of future-proofing its business, supporting sustainability goals, and enhancing its competitive advantage in an increasingly digital and data-driven market.
As part of its digital transformation, ADNOC Distribution deployed MEERAi, ADNOC’s AI-powered board advisory tool, at its latest Board meeting. Designed for executive use, MEERAi provides real-time insights, facilitating quicker, data-driven decisions.
With a robust net debt to EBITDA ratio of 0.80x at the end of H1 2025, the company remains dedicated to its dividend policy, ensuring transparency regarding returns. ADNOC Distribution anticipates 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. Moreover, at a share price of 3.70 as of 6 August 2025, this translates to an annual yield of nearly 6 percent. A dividend of $350 million for H1 2025 is expected to be distributed in October 2025, pending Board approval.
In alignment with its five-year growth strategy, ADNOC Distribution is committed to maximizing returns by driving innovation, unlocking incremental value from its assets, meeting the rising fuel and non-fuel demand in the UAE, and accelerating disciplined regional and international growth. Additionally, with an annual CAPEX commitment of $250-$300 million through 2028, the company’s resilient business model and clear growth strategy position it for sustained momentum throughout the second half of 2025 and beyond.
