Abu Dhabi National Oil Company for Distribution (ADNOCDIST) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 EBITDA and double-digit net profit growth, driven by strong retail and non-fuel performance, with operations spanning UAE, Egypt, and KSA.

• Maintained robust cash flow and balance sheet, supporting attractive shareholder distributions and growth investments.

• Expanded network by 20 stations in Q1, including 5 new UAE stations and 15 contracted in KSA under a capital-light DOCO model.

• Accelerated digital, AI, and sustainability initiatives, including a 3X increase in EV charging points and a 25% carbon intensity reduction target by 2030.

• Maintained industry-leading safety record, enhanced ESG ratings, and no audit issues identified.

Financial highlights

• EBITDA increased by 11% year-over-year to $275 million; underlying EBITDA up 13%.

• Net profit grew 22.8% year-over-year to AED 648 million, with gross profit up 9.3% to AED 1.62 billion.

• Gross margin improved to 19.1% from 16.9% year-over-year.

• Operating cash flow (excluding working capital effects) reached $279 million; free cash flow before working capital changes rose 15.7% to $198 million.

• Net debt to EBITDA ratio at 0.7x, indicating a strong balance sheet.

Outlook and guidance

• On track to deliver 2025 guidance: 40-50 new stations, 100 new EV charging points, and $250-300 million CapEx.

• Committed to annual dividend of $700 million or at least 75% of net profit through 2028.

• Sustained growth expected in 2025 and beyond, with focus on expanding non-fuel retail and international operations.

• Committed to 25% reduction in Scope 1 & 2 emissions intensity by 2030 (vs. 2021 baseline).

• Management anticipates no material impact from new IFRS standards not yet adopted.