Abu Dhabi National Oil Company for Distribution (ADNOCDIST) Q4 2023 earnings summary

Executive summary

• Record FY 2023 reported EBITDA of $1.002bn (AED3.68bn), up 4.6% YoY and meeting the five-year commitment; underlying EBITDA rose 15.4% to $909m.

• Added 41 stations to reach 840, exceeding the 2023 target of 25–35; total fuel volumes grew 40% to 13.8bn liters.

• Generated $1.096bn free cash flow and ended 2023 with $870m cash and net debt/EBITDA of 0.62x.

Financial highlights

• FY revenue was $9.428bn, up 7.8% YoY; gross profit was $1.589bn, up 3.0%, with a 16.9% gross margin.

• FY net profit attributable to equity holders fell 5.4% to $708m; excluding inventory movements, it rose 6.4% to $616m.

• Q4 revenue rose 16.8% YoY to $2.604bn; reported EBITDA increased 43.8% to $256m and underlying EBITDA rose 27.7% to $242m.

• Q4 net profit attributable to equity holders rose 61.4% YoY to $184m; excluding inventory movements, it increased 35.5% to $170m.

• Non-fuel gross profit increased 19.6% YoY, supported by a 24.7% convenience-store conversion rate versus 21.7% in 2022.

Outlook and guidance

• 2024 organic growth plan includes $250–300m CAPEX and a target of 15–20 new stations.

• The 2024–28 strategy prioritizes sustainable mobility, convenience, asset optimization, non-fuel retail expansion and energy-transition revenue streams.

• Growth priorities include operational excellence, station transformation, EV charging and value-accretive inorganic opportunities; further details were slated for a Capital Markets Day.

• Targeted a 25% carbon-intensity reduction by 2030.