Abu Dhabi National Oil Company for Distribution (ADNOCDIST) Q3 2024 earnings summary

Executive summary

• Achieved record-high nine-month EBITDA of $790 million and underlying EBITDA of $721 million, driven by strong fuel volumes, double-digit non-fuel retail growth, and ADNOC Rewards loyalty program expansion.

• Demonstrated solid business performance with predictable cash flow, industry-leading margins, and limited oil price volatility exposure.

• Maintained a robust balance sheet and strong liquidity, enabling attractive shareholder distributions and growth investments.

• Continued focus on sustainable growth, transforming service stations into destinations of choice, and futureproofing through energy transition initiatives.

• Committed to high HSE standards, achieving zero fatalities and catastrophic events in nine months of 2024.

Financial highlights

• Nine-month 2024 EBITDA: $790 million (up 5.9% year-over-year); underlying EBITDA: $721 million (up 11.6% year-over-year); net profit: $501 million, down 4.4% year-over-year due to UAE tax.

• Free cash flow for nine months: $537 million; net debt-to-EBITDA ratio at 0.56x as of September 2024.

• Revenue for nine months: $7,247 million, up 6.2% year-over-year.

• Non-fuel retail gross profit up 13% year-over-year; commercial segment gross profit up 11%.

• ROCE at 29.5% and ROE at 94.3% in Q3 2024.

Outlook and guidance

• Solid outlook for full year 2024 and beyond, driven by volume growth, non-fuel retail expansion, international activities, and efficiency gains.

• CAPEX guidance for 2024: $250–$300 million, with 70% allocated to growth initiatives, including EV charging and technology.

• Five-year dividend policy: annual dividend of $700 million or at least 75% of net profit, whichever is higher.

• Targeting 150–200 fast and super-fast EV charging points by end of 2024; committed to a 25% reduction in Scope 1 & 2 emissions intensity by 2030.

• Plans to double property units occupied by top F&B brands by end of 2025.