Abu Dhabi National Oil Company for Distribution (ADNOCDIST) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 EBITDA of $1.05 billion, with underlying EBITDA up over 11%, driven by highest fuel volumes and double-digit non-fuel retail growth.

• Net profit reached $659 million, impacted by a $66 million UAE tax charge; adjusted net profit grew 2%, but reported net profit declined 7% year-over-year.

• Revenue increased 2.4% year-over-year to AED 35.45 billion, with gross profit rising to AED 6.22 billion.

• Expanded network to nearly 900 stations, surpassing annual targets, with 4x growth in EV charging points and continued expansion in UAE, KSA, and Egypt.

• Maintained industry-leading returns with ROCE at 29% and robust free cash flow generation.

Financial highlights

• Revenue grew 2.4% to $9.65bn; gross profit up 6.5% to $1.69bn; gross margin improved to 17.5%.

• EBITDA increased 4.8% to $1.05bn; underlying EBITDA up 11.4% to $989m.

• Free cash flow of $756 million fully funded a $700 million dividend commitment.

• Net debt to EBITDA ratio at 0.69x, reflecting strong financial standing.

• Dividend payout ratio reached 104% of net profit, with AED 2.57 billion paid in 2024.

Outlook and guidance

• Plans to add 40-50 new stations in 2025, including 30-40 in Saudi Arabia under a dealer-owned, company-operated model.

• 2025 CAPEX guidance of $250-$300 million focused on sustainable growth, non-fuel retail, technology, and EV charging.

• Targeting 10-15x growth in EV charging points by 2028 and 50% increase in non-fuel transactions by 2028.

• Dividend policy set at a minimum of $700 million or 75% of net income annually through 2028.

• Management expects no material impact from new IFRS standards or DMTT implementation.