ADNOC Distribution Approves $700M H2-2024 Dividend Payout

ADNOC Distribution (ISIN: AEA006101017) (Symbol: ADNOCDIST), the UAE’s premier fuel and convenience retailer, has successfully secured shareholder approval for all agenda items at its Annual General Assembly Meeting (AGM). Among the key approvals is the final cash dividend of $350 million (AED 1.285 billion) for the second half of 2024, set for distribution in April 2025. This brings the total dividend for 2024 to $700 million (AED 2.57 billion), reflecting a 6.1% yield based on the closing share price of AED 3.39 on March 25, 2025. ADNOC Distribution remains committed to its 2024-28 dividend policy, ensuring annual payouts of at least $700 million or a minimum of 75% of net profit, whichever is greater.

Dr. Sultan Ahmed Al Jaber, Chairman of ADNOC Distribution, said: “Financially, 2024 was another record-breaking year. We delivered against our five-year strategy, achieving significant milestones that strengthened our market position and set the stage for long-term success. For the second consecutive year, our EBITDA surpassed $1 billion, driven by record fuel volumes—which increased by nearly 9%—and sustained non-fuel retail growth, which have allowed us to deliver strong shareholder returns.”

Record-Breaking Growth and Financial Performance in 2024

In 2024, ADNOC Distribution rolled out an ambitious five-year growth plan focused on domestic expansion, international platform development, and future-proofing its business. The successful execution of this strategy led to a record EBITDA of $1.05 billion (AED 3.86 billion), marking a 5% year-on-year increase. This growth was fuelled by record fuel volumes, a surge in non-fuel retail sales, and increased contributions from its operations in Saudi Arabia and Egypt. The company's strong performance also resulted in a free cash flow of $756 million (AED 2.78 billion) for the year.

Impressive Shareholder Returns Since IPO

Since going public in 2017, ADNOC Distribution has distributed a cumulative $4.8 billion (AED 17.4 billion) in dividends, delivering an impressive 92% total shareholder return. The 2024 dividend payout of $700 million represents a 3.5x increase from the $200 million distributed in the company’s first year as a listed entity.

Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “ADNOC Distribution is committed to leading the way for the future of mobility and convenience retail, as evidenced by our commitment to expanding our international operations and prioritizing high-growth areas. Throughout 2025, we will continue to drive towards our five-year strategic objectives, including 1,000 service stations across our network, increasing non-fuel transactions by 50%, and expanding our E2GO network to 500 EV charging points across the UAE by 2028. Diversification and innovation are key drivers of our growth.”

Expanding EV Charging and Enhancing Community Engagement in 2025

Looking ahead to 2025, ADNOC Distribution plans to install approximately 100 new fast and super-fast EV charging points across the UAE, reinforcing its commitment to the future of mobility. In alignment with the Year of Community initiative, the company is transforming its service stations into more than just refuelling stops. Plans include doubling the number of properties occupied by top international and regional food and beverage brands by the end of the year compared to 2023 levels.

Strategic Growth Goals for 2028

By 2028, ADNOC Distribution aims to expand its ADNOC Oasis convenience store network by 25%, boost non-fuel transactions by 50%, and establish 50+ directly operated franchise stores. This strategy is expected to increase property yield 2.5 times compared to traditional rental agreements. Additionally, the company aims to have 1,000 service stations in its network by 2028, with 40-50 new stations planned for 2025, including 30-40 in Saudi Arabia.

Saudi Arabia Expansion and the DOCO Model

A major milestone in 2024 was the expansion of ADNOC Distribution’s Saudi Arabian network to 100 service stations, achieved through the Dealer-Owned, Company-Operated (DOCO) model. This low-CAPEX, scalable approach allows ADNOC Distribution to manage operations while local dealers retain ownership. By 2029, the company aims to triple its Saudi footprint to at least 300 stations, positioning itself among the top five fuel and convenience retailers in the Kingdom.

2025 Growth Momentum and Digital Transformation

ADNOC Distribution is poised for strong growth in 2025, with a planned CAPEX investment of $250-300 million. The company is harnessing the power of AI-driven data analytics and personalized customer engagement to drive its digital transformation. As the UAE’s leading multi-energy mobility retailer, ADNOC Distribution is committed to strengthening its market leadership and expanding internationally with a disciplined, strategic approach.