Post by : Bianca
Haleem
ADNOC Distribution has announced impressive financial outcomes for the first quarter ending March 31, 2026, propelled by an uptick in fuel sales, retail business growth, and enhanced international operations.
The company achieved a record first-quarter EBITDA of $307 million, which signifies an 11.7 percent rise compared to the corresponding period last year. Net profits also surged by 20.7 percent year-on-year, reaching $210 million.
This robust performance is attributed to increased fuel volumes, improved contributions from the commercial sector, and the expansion of its non-fuel retail segment alongside international market gains. ADNOC Distribution's diverse operations in the UAE, Saudi Arabia, and Egypt have bolstered its business stability.
The company remains committed to investing across various sectors, including fuel retail, commercial services, lubricants, convenience stores, and vehicle services. Presently, retail operations are responsible for around 70 percent of total fuel volumes, while commercial activities make up the remaining 30 percent.
Bader Saeed Al Lamki, Chief Executive Officer of ADNOC Distribution, expressed confidence in the company's momentum entering 2026, even amidst fluctuating market conditions.
He highlighted that the ongoing expansion of the service station network and growth in the non-fuel retail segment underscore the success of ADNOC Distribution's long-term strategy. Additionally, the firm’s solid balance sheet and robust cash flow position it favorably for future growth and consistent value creation.
During the first quarter, ADNOC Distribution opened 22 new service stations, bringing its total to 1,032 stations, and aims to establish between 60 and 70 additional locations by the end of 2026.
Fuel volume reached a record 3.82 billion liters during the first quarter, marking a 2.4 percent increase compared to the prior year.
The non-fuel retail sector also exhibited robust growth, with gross profit increasing by 10 percent year-on-year. The company confirmed it plans to launch five more "The Hub by ADNOC" locations in 2026.
"The Hub by ADNOC" provides retail spaces nearly three times larger than conventional service stations, with an expectation of operating 30 Hub locations by 2030 and generating an EBITDA contribution of $30 million.
The Board of Directors at ADNOC Distribution approved the inaugural quarterly dividend for 2026, awarding shareholders 5.14 fils per share in June 2026 as a part of the new quarterly dividend strategy.
The newly extended dividend policy, which continues until 2030 following shareholder approval at its Annual General Assembly meeting in March, guarantees annual returns of $700 million or at least 75 percent of net profit, whichever is greater. This extended policy aims to offer investors long-term dividend visibility alongside potential earnings growth.
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