ADNOC Distribution reports record profit of $568 million and approves dividend.
Dubai: ADNOC Distribution reported a record net profit of $568 million for the first half of 2026, marking a 59% increase from the same period a year earlier.
The company said the growth was driven by higher fuel volumes, network expansion, inventory gains and continued growth in its non-fuel retail business.
The company’s board also approved a second-quarter dividend of 5.14 fils per share, amounting to $175 million, with payment scheduled for September 1.
Shareholders must own the stock by August 12 to qualify for the dividend. The shares will trade ex-dividend from August 13, with the record date set for August 14.
Fuel volumes reach record high
ADNOC Distribution sold a record 7.75 billion litres of fuel during the first six months of the year, driven by strong demand from both retail and commercial customers.
Its network across the UAE, Saudi Arabia and Egypt expanded by 11% to 1,045 service stations.
Gross profit rose 29% to $1.16 billion, while reported earnings before interest, tax, depreciation and amortisation (EBITDA) increased 39% to a record $786 million.
Underlying EBITDA, which excludes certain one-off factors, grew 14% to $603 million.
“Despite a dynamic macroeconomic environment, ADNOC Distribution delivered another record performance in the first half of 2026, demonstrating the resilience of our diversified business model and the strength of our growth strategy,” said Eng. Bader Saeed Al Lamki, Chief Executive Officer of ADNOC Distribution.
“We are scaling higher-margin opportunities in non-fuel retail while continuing to strengthen our core fuel business.”
Non-fuel retail profit rises 12%
Gross profit from non-fuel retail increased 12%, driven by higher customer footfall, increased transactions and an expanded food and convenience offering.
The company continued to roll out The Hub by ADNOC, a roadside retail format with a footprint three times larger than a traditional service station. Locations operating under the concept are expected to generate annual EBITDA of $30 million by 2030.
ADNOC Distribution also entered into a partnership with Americana Restaurants International in May to open up to 200 quick-service restaurants across its service station network.
The agreement will introduce restaurant brands from Americana’s portfolio at ADNOC Distribution locations as the company continues to diversify revenue streams beyond fuel sales.
EV charging network expands
ADNOC Distribution opened what it described as the region’s largest electric vehicle charging hub on the E11 highway between Abu Dhabi and Dubai during the first half of the year.
Its E2GO charging network expanded by 35% compared with a year earlier, while electricity sales through the network more than doubled.
Electric vehicles charged at ADNOC Distribution stations covered 27.4 million low-emission kilometres during the period, double the distance recorded in the same period a year earlier.
South Africa deal progresses
ADNOC Distribution signed a definitive agreement in July to acquire Shell’s downstream business in South Africa at an implied enterprise value of $1 billion.
The proposed transaction remains subject to regulatory approvals and is expected to close in 2027.
The company expects the acquisition to increase earnings per share by 6% in the first full year after completion.
Dividends since IPO approach $5.8 billion
ADNOC Distribution’s dividend policy provides for an annual payout of $700 million or at least 75% of net profit, whichever is higher.
Once the second-quarter dividend is paid, the company will have distributed an estimated $5.8 billion, or Dh21.5 billion, to shareholders since its initial public offering.
