ADNOC Distribution’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the year 2023 grew 4.6 percent year-on-year to $1.002 billion (AED3.68 billion).
The UAE’s largest fuel and convenience retailer thus delivered on the five-year target it had communicated to the market during its first Capital Markets Day in May 2019, the company said in a statement.
The company informed Abu Dhabi Securities Exchange (ADX) that the underlying EBITDA for the year, excluding the impact of inventory movements, increased by 15.4 per cent year-on-year.
ADNOC witnesses double-digit increase in fuel volumes, non-fuel business
During the period, there was a double-digit increase in fuel volumes and non-fuel business, apart from rising contributions from international operations. Total fuel volumes recorded an 11.8 per cent year-on-year growth, while retail volumes grew by 9.6 per cent and commercial volumes up by 16.2 per cent.
The company’s efficiency improvement initiatives, leading to like-for-like operating expenditure savings of $28 million (AED103 million), also helped with the improved EBITDA.
ADNOC Distribution generated $1.1 billion (AED4.0 billion) of free cash flow and had a net debt-to-EBITDA ratio of 0.62x as of 31 December 2023.
Bader Saeed Al Lamki, CEO of ADNOC Distribution, commented: “Fueled by our record EBITDA of over $1 billion, 2023 was a remarkable and transformative year for ADNOC Distribution.
“Our team delivered on a critical commitment made to capital markets, underpinned by our focus on execution excellence, future-proofing the business, unwavering dedication to health safety and environment, and by our capability building and cultural transformation.
“Looking ahead, ADNOC Distribution’s Board of Directors has approved a new five-year strategy for 2024-28, targeting the next phase of growth with a focus on sustainable mobility and convenience. It includes optimising existing assets to improve our profitability, doubling down on non-fuel retail, and generating new revenue streams offered by energy transition to future-proof our business and increase customer satisfaction.”
Al Lamki said the company’s next five-year strategy will be revealed during the upcoming Capital Markets Day.
In line with its dividend policy, the Board has recommended distributing a dividend of $350 million (AED1.285 billion), equivalent to 10.285 fils per share, for the second half of 2023. Once approved by the shareholders, total dividend for the fiscal year 2023 is expected to be $700 million (AED2.57 billion), equivalent to 20.57 fils per share.
ADNOC Oasis convenience store sales increased by 12.9 per cent year-on-year. Thanks to various initiatives by the company, ADNOC Rewards loyalty program saw a remarkable 22 per cent increase in membership, rising to over 1.9 million.
As reported last week in its operational report, ADNOC Distribution surpassed its target of opening 25-35 new stations during the year by launching 41 new service stations, including nine ADNOC-branded service stations across Greater Cairo in Egypt.
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