ADNOC Distribution reveals new 5 year growth strategy

The management of ADNOC Distribution revealed its new 5-year growth strategy at an Investor Day in Abu Dhabi on Monday, 26 February. The Company, which aims to establish itself as a multi-energy, convenience, and mobility leader, is the UAE’s largest fuel and convenience retailer.

The Investor Day, held in Abu Dhabi, was attended by more than 50 investors and analysts from UAE and abroad and was followed by a field visit to the flagship ADNOC service station 933, where the Company demonstrated the latest offerings and innovations, including high-speed electric vehicle (EV) charging points, seamless payment methods and digitally enhanced services.

Speaking at the Investor Day event, Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution said: “Supported by our robust balance sheet and strong cash flow generation, ADNOC Distribution’s new growth strategy is underpinned by three key drivers: domestic growth, international platforms, and future-proofing the business. In its pursuit to become a multi-energy leader, the Company is also scaling up its portfolio of low-carbon energy solutions including biofuels, EV and hydrogen in support of the decarbonisation of the transport industry. We are confident in our ability to continue returning positive incremental shareholder value.”

Some of the highlights from the new five-year strategy’s operational objectives for 2028 included:

• Grow the ADNOC Distribution network to 1,000 service stations, a +20% increase compared to 840 stations in 2023.
• Target a minimum of 500 EV fast & superfast charging points to build a national network, a 10X increase from 2023.
• Allocate $250 to $300 million annually for CAPEX, with 70% focused on growth.
• The new dividend policy proposal will provide $700 million annually or a minimum 75% of net profit, whichever is higher, offering dividend upside potential from future earnings growth. The proposal is subject to shareholder approval at the AGM in March.

ADNOC Distribution said in a statement that it was committed to continue delivering EBITDA growth from 2024 to 2028 through its identified key strategic initiatives and focus areas. The Company will reallocate capital towards convenience and mobility to transform its stations into destinations-of-choice, continue to build on its international platforms with a focus on increased contributions, and future proof the business by unlocking new revenue streams offered by the energy transition.