Abu Dhabi National Oil Company for Distribution (ADNOCDIST) Q2 2026 earnings summary

Executive summary

• Achieved record H1 2026 net profit of $568 million (up 59% YoY) and EBITDA of $786 million (up 39% YoY), with underlying EBITDA up 14% to $603 million, reflecting strong operational performance and inventory gains.

• Revenue for H1 2026 reached $5,999 million (AED 22.0 billion), up 28.8% YoY, with gross profit up 28.9% to $1,158 million (AED 4.25 billion).

• Expanded network by 11% to 1,045 stations, with significant growth in Saudi Arabia and Egypt, and fuel volumes reaching 7.75 billion liters.

• Announced acquisition of Shell Downstream South Africa for ~$1 billion, expected to close in 2027, expanding network by 55% and fuel volume by 20%.

• Diversified growth engines include fuel retail, non-fuel retail (NFR), commercial, and EV charging, supported by digital transformation and strategic partnerships.

Financial highlights

• Net profit reached $568 million, up 59% YoY; EBITDA at $786 million, up 39% YoY; underlying EBITDA up 14% to $603 million.

• Gross profit rose 29% YoY to $1,158 million; fuel retail up 24%, commercial up 51%, non-fuel retail up 12%.

• Free cash flow before working capital changes reached $713 million, up 74.5% YoY; leverage stable at 0.7x net debt/EBITDA.

• Return on capital employed at 40% and ROE at 105.8% for H1 2026.

• Basic and diluted EPS for the period was AED 0.167, compared to AED 0.105 in the prior year.

Outlook and guidance

• CapEx guidance for 2026 remains $250–300 million, with similar levels expected mid-term.

• Dividend policy: $700 million annual floor or 75% of net income, paid quarterly through 2030, with potential for higher dividends post-South Africa acquisition.

• Network expansion targets: 60–70 new stations and 50–60 new EV charging points in 2026; mobility retail footprint expected to exceed 1,700 sites by 2028.

• Non-fuel retail and property management expected to contribute more meaningfully to earnings.

• South Africa acquisition expected to close in 2027, EPS accretive from year one.