Adnoc Distribution reports 36% jump in nine-month profit on fuel sales boost

Adnoc Distribution, the UAE's largest fuel and convenience retailer, reported an annual increase of more than 36 per cent in its nine-month net income as volumes of fuel sold rose amid the opening of new stations.

Net profit attributable to shareholders for the nine months to the end of September climbed to Dh2.9 billion ($790 million), Adnoc Distribution said on Monday in a filing with the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue for the reporting period also jumped more than 32 per cent on an annual basis to Dh35 billion, underpinned by a 1.3 per cent rise in fuel volumes to 11.86 billion litres. Strong contributions from the non-fuel retail segment, as well as a rise in fuel prices on the back of higher global oil prices, also supported revenue growth, Adnoc Distribution said.

Bader Al Lamki, chief executive of Adnoc Distribution, said the company's "strong nine-month performance demonstrates the breadth of our diversified platform and the disciplined execution of our growth strategy".

“We are building on this momentum to future-proof our growth by scaling higher-margin NFR [non-fuel retail] opportunities and progressing our international strategy,” he said.

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Adnoc Distribution chief highlights record year

Growth trajectory

The company’s non-fuel retail gross profit during the first nine months of the year climbed 13 per cent year-on-year to $217 million, supported by strong performance of its convenience store and property management businesses.

The Hub by Adnoc, the company’s roadside retail concept, which offers a retail footprint three times as large as traditional service stations, also drove growth. The company remains on track to open 30 hub sites by 2030 to further boost non-fuel retail revenue growth.

Despite continued disruption in the Strait of Hormuz, which has brought economic headwinds to the region this year and driven global oil prices higher, Adnoc Distribution expects to maintain its growth trajectory.

The company, a unit of Abu Dhabi-based global energy company Adnoc, aims to continue building on the growth momentum and has upgraded its 2026 network expansion target.

Adnoc Distribution now expects to add between 80 and 90 stations during the year, revised from the previous target of 60 to 70 new stations. It is on track to meet its 2026 targets of adding between 50 and 60 EV charging points and keeping capital expenditure at $250 million-$300 million.

International footprint

In July, Adnoc Distribution signed a definitive agreement to acquire 100 per cent of Shell Downstream South Africa (SDSA) in a bid to further expand its international portfolio.

The company said in a bourse filing at the time that it was acquiring the assets from Shell South Africa Holdings for an implied enterprise value of about $1 billion.

The agreement will include SDSA's network of 580 fuel stations, along with its wholesale fuel, aviation and lubricants operations.

Adnoc Distribution on Monday said it expects the transaction to close in 2027, subject to regulatory approvals. The proposed deal is a step towards becoming a global player and will expand its fuel retail footprint in Africa.

Upon completion of the transaction, South Africa would become the company’s fourth international market, after the 2018 launch of its retail fuel stations in Saudi Arabia and acquisition in 2023 of a 50 per cent stake in TotalEnergies Marketing Egypt.

“Through initiatives such as our proposed entry into South Africa, we are transforming into a leading international mobility and convenience retailer and creating long-term shareholder value,” Mr Al Lamki said.