Adnoc Distribution posted a record first half net profit of $568 million, rising 59 per cent year-on-year, which it attributed to record fuel volumes and continued network expansion
The company saw its EBITDA increase 39 per cent to $786 million, up from $566 million the previous year. Underlying EBITDA rose 14 per cent to $603 million, up from $530 million.
Gross profits increased 28.9 per cent to Dh1.15 billion in H1 2026, up from Dh898 million the same period last year. Inventory gains and a sustained growth in the higher-margin non-fuel retail (NFR) segment also factored in the company’s record performance during the first half.
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Record levels of fuel volumes
Adnoc Distribution’s network expansion and resilient retail and commercial demand drove fuel volumes to reach a record 7.75 billion liters. Its fuel retail network, which span the UAE, Saudi Arabia and Egypt, increased to 1,045 service stations in this period, up 11 per cent year-on-year.
Adnoc Distribution’s Board of Directors approved a Q2 2026 dividend of 5.14 fils per share ($175 million), payable in September, in line with its policy to deliver $700 million annually or at least 75 per cent of net profit. Upon the payout of Q2 2026 dividends, Adnoc Distribution will have delivered an estimated $5.8 billion (Dh.5 billion) in dividends since IPO.
Key drivers of growth in H1
The petroleum retailer launched one of the largest electric vehicle (EV) mega-hub in the region, with its E2GO charging network growing +35 per cent year-on-year during the first half. Volume of energy sold increased by 2.1x compared to H1 the previous year. EVs charged by Adnoc Distribution travelled 27.4 million low-emission kilometers in H1 2026, the company said.
Additionally, the company’s NFR business remained a key driver of higher-margin growth in H1, with gross profit increasing by 12 per cent supported by higher footfall, increased transactions and an expanded food and convenience offering.
Adnoc’s The Hub, a roadside retail concept, also supported NFR growth during the period. With a retail footprint three times larger than traditional service stations,
The Hub’s many locations are expected to deliver annual EBITDA of $30 million by 2030. The company said it’s expanding its customer proposition through partnerships, such as its Americana Restaurants International partnership in May, which it aims to launch around 200 quick-service restaurants (QSRs) across its network.
Expansion to South Africa
Adnoc Distribution entered into a definitive agreement last month for the proposed acquisition of 100 per cent of Shell Downstream South Africa (SDSA) at an implied enterprise value of $1 billion (Dh3.67 billion). The acquisition is expected to deliver an earnings-per-share uplift of 6 per cent in the first full year after completion, expected in 2027.
Adnoc Distribution Chief, Bader Saeed Al Lamki said that the company will scale higher-margin opportunities in non-fuel retail while continuing to strengthen the fuel business.
“Building on our H1 momentum, we are accelerating innovation, expanding our digital revenue streams and progressing with the proposed acquisition of Shell Downstream South Africa – a major milestone in our international expansion journey,” he said.
Source: Khaleej Times