Adnoc Distribution reports record fuel volumes, Ebitda for first nine months of 2024

Adnoc Distribution on Thursday reported its highest nine-month earnings before interest, taxes, depreciation and amortisation (Ebitda) of $790 million (Dh2.90 billion) and underlying Ebitda of $721 million (Dh2.65 billion), implying growth of 5.9 per cent and 11.6 per cent year-on-year, respectively.

In the first nine months of 2024, the company’s free cash flow reached $537 million (Dh1.97 billion), while maintaining a robust balance sheet with a net debt-to-Ebitda ratio of 0.56x as of September 30, 2024.

This strong financial standing positions the company favourably for future growth and attractive shareholder distributions. These achievements can be attributed to strong retail and commercial performance, including highest-ever nine-month fuel volumes, robust non-fuel retail (NFR) contributions, and cost efficiency improvements.

Ebitda growth and strong free cash flow generation were also supported by material like-for-like opex savings totalling $13 million (Dh48 million) over the first nine months of 2024, putting the Company on track to achieve $50 million (Dh184 million) in opex savings between 2024 and 2028.

Eng. Bader Saeed Al Lamki, CEO of Adnoc Distribution, said, “Adnoc Distribution’s strong underlying financial performance is testament to the Company’s solid fundamentals and its ability to execute against strategic objectives. Across the first nine months of the year, we made steady progress expanding our domestic retail presence and market share, while also seeing growing returns from our international expansion.

To continue to unlock shareholder value, the company is pursuing AI, advanced digital technologies, and innovation-enabled growth across our entire value chain, engendering considerable OPEX savings and improvements to our industry-leading customer experience.”

The H1 2024 dividend of $350 million (Dh1.285 billion) was distributed in October, aligning with the approved five-year policy which expects the Company to distribute annual dividend of $700 million (Dh2.57 billion), equivalent to 20.57 fils per share, or a minimum of 75 per cent of net profit, whichever is higher, offering long-term visibility for shareholders.

The H2 2024 dividend will be paid in April 2025, subject to the discretion of the Board and approval of shareholders.

In the first nine months of 2024, Adnoc Distribution exceeded 11 billion litres in total fuel volumes, marking a 9.2 per cent year-on-year increase, driven by network expansion, economic growth, and growing contributions from international operations.

Non-fuel retail transactions also grew by 9.4 per cent year-on-year during the period, with a 10.3 per cent growth in Q3 alone.

The convenience store conversion rate reached 25.5 per cent over the nine-month period – the highest for this period in five years — including 25.9 per cent in Q3 2024.

Key growth initiatives included expanding premium food and beverage offerings, enhancing car services, and optimising real estate to strengthen the Company’s position.

Since its IPO in 2017, Adnoc Distribution has delivered significant returns to shareholders through enhanced market value and consistent dividends, including the distribution of $4.4 billion in dividends. Building on its strong financial results and operational performance over the past nine months, the Company is well-positioned for its next phase of strategic and accelerated growth.