Post by : Badri Ariffin

In an impressive financial report, ADNOC Distribution announced outstanding results for the first quarter ending March 31, 2026. The growth was propelled by elevated fuel sales, the thriving retail business, and expanding operations internationally.

The company's EBITDA reached a historic figure of $307 million, reflecting a rise of 11.7 percent compared to the same quarter last year. The net profit also experienced a significant upswing, climbing by 20.7 percent year-on-year to hit $210 million.

This remarkable performance was fueled by increased fuel volumes along with improvements in commercial segments, robust growth in non-fuel retail (NFR), and heightened income from global markets. ADNOC Distribution emphasized that its diverse operations across major regions like the UAE, Saudi Arabia, and Egypt have fortified its business stability.

The company continues to invest in a variety of business sectors such as fuel retail, commercial services, lubricants, convenience stores, and car services. Current retail operations contribute approximately 70 percent of total fuel volumes, while commercial activities account for the remaining 30 percent.

Bader Saeed Al Lamki, CEO of ADNOC Distribution, shared that the company entered 2026 with strong momentum, navigating through changing market landscapes.

He asserted that the ongoing expansion of service stations and the rising contribution from the non-fuel retail sector validate the effectiveness of ADNOC Distribution's long-term strategic approach. Additionally, he mentioned that the firm's robust balance sheet and cash flow position it favorably for future growth and sustainable value creation.

During the quarter, ADNOC Distribution added 22 new service stations, bringing the total to 1,032. The company plans to establish another 60 to 70 service stations throughout 2026.

Fuel volume hit an astounding 3.82 billion liters in the first quarter, marking a 2.4 percent year-on-year growth.

Meanwhile, ADNOC Distribution’s non-fuel retail division continued to thrive, with gross profit experiencing a 10 percent increase compared to the previous year. The company also plans to launch five additional “The Hub by ADNOC” locations in 2026.

These hubs feature retail spaces that are nearly three times the size of traditional service stations, with expectations to operate 30 hub locations by 2030, anticipating an EBITDA contribution of $30 million.

The Board of Directors at ADNOC Distribution has approved the company’s first quarterly dividend for 2026. Shareholders can expect 5.14 fils per share in June 2026, as part of the newly established quarterly dividend scheme.

Furthermore, the company's dividend policy, recently extended through 2030 after receiving shareholder approval at the Annual General Assembly in March, guarantees annual returns of $700 million or at least 75 percent of net profit, whichever is higher. This extended policy aims to provide investors with long-term dividend clarity and the potential for earnings growth in the future.

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