Abu Dhabi National Oil Company for Distribution (ADNOCDIST) Q3 2024 earnings summary

Executive summary

• Achieved record-high nine-month EBITDA of $790 million and underlying EBITDA of $721 million, driven by strong fuel volumes, double-digit non-fuel retail growth, and ADNOC Rewards program expansion.

• Net profit for nine months was $501 million, impacted by the introduction of UAE corporate tax, but underlying net profit excluding tax grew 5.1% to $551 million.

• Demonstrated strong cash generation and operational efficiency, with free cash flow at $537 million and industry-leading margins.

• Continued network expansion with 19 new stations and over 100 new EV charging points in the first nine months, transforming service stations into destinations of choice.

• Maintained a robust balance sheet and strong liquidity, enabling attractive shareholder distributions and growth investments.

Financial highlights

• Nine-month 2024 EBITDA reached $790 million, up 5.9% year-over-year; underlying EBITDA up 11.6% to $721 million.

• Net profit for nine months was $501 million, down 4.4% year-over-year due to UAE tax; free cash flow at $537 million.

• Non-fuel retail gross profit up 13% year-over-year; commercial segment gross profit up 11%.

• Revenue for nine months rose 6.2% year-over-year to $7,247 million.

• ROCE reached 29.5% and ROE 94.3% in Q3 2024.

Outlook and guidance

• Solid outlook for full year 2024 and beyond, driven by volume growth, non-fuel retail expansion, international contributions, and efficiency gains.

• CAPEX guidance for 2024: $250–$300 million, with 70% allocated to growth initiatives, including EV charging and technology.

• Targeting 150–200 fast and super-fast EV charging points by end of 2024; committed to a 25% reduction in Scope 1 & 2 emissions intensity by 2030.

• Five-year dividend policy targets $700 million annually or at least 75% of net profit, whichever is higher.

• Plans to double property units occupied by top F&B brands by end of 2025.