ADNOC Distribution today announced its financial results for the second quarter of 2024. The Company reported a 15.0% YoY increase to $267 million in Q2 2024 EBITDA, and a 12.9% YoY rise in net profit to $170 million.
Excluding the impact of the UAE corporate tax, net profit would have increased by 24.5% YoY to $187 million. Strong financial performance in Q2 2024 was driven by higher fuel volumes, increased contributions from international operations, and growth in the non-fuel retail business.
The Company’s non-fuel retail gross profit increased by 13.5% YoY in Q2 2024 to $56 million, driven by contributions from the expanding car wash business, supported by new initiatives such as tunnels and upgraded automatic car washes, as well as enhanced convenience store offerings and other car services.
Growth was further supported by higher inventory gains and significant progress in cost optimisation, with $10 million in like-for-like OPEX savings achieved in H1 2024.
Bader Saeed Al Lamki, CEO of ADNOC Distribution, said, “ADNOC Distribution continues to achieve strong financial results. The strong Q2 2024 results, marked by double-digit EBITDA and net profit growth, highlight our effective pursuit of the Company’s five-year strategy, focusing on domestic growth, international platforms, future-proofing the business, and investing in convenience and mobility.”
The Company generated a strong free cash flow of $330 million in Q2 2024, a 7x increase compared to Q2 2023.
In H1 2024, the Company’s free cash flow stood at $488 million, representing 46.7% YoY growth, while maintaining a robust balance sheet with a net debt-to-EBITDA ratio of 0.53x as of 30th June 2024.
The H1 2024 dividend of $350 million is expected to be distributed to shareholders in October 2024, subject to the discretion of the Board of Directors.
This is in line with the Company’s approved five-year dividend policy that sets an annual dividend of $700 million (20.57 fils per share), or a minimum 75% of net profit, whichever is higher.
The Company added 10 new service stations in H1 2024, bringing the total to 847 across UAE, KSA, and Egypt, steadily progressing towards its target of adding 15 to 20 stations throughout 2024.
In H1 2024, the Company also continued to expand its electric vehicle (EV) charging network. It made significant progress towards achieving a key operational milestone by opening a pioneering Mobility Hub in Masdar City and doubling its network of fast and super-fast charging points to more than 100 compared to the end of 2023. This is in line with its target to reach 150 to 200 by the end of the year.