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ADNOC Distribution has delivered its strongest quarterly performance since its IPO, reporting Q3 2025 EBITDA of Dhs1,171m, up 15.9 per cent year-on-year, alongside net profit growth of 21.5 per cent to Dhs811m.
The nine-month results show EBITDA of Dhs3,243m (Dhs3.2bn), a 12 per cent increase year-on-year, with net profit reaching Dhs2,118m (Dhs2.1bn), up 15.6 per cent.
Fuel volumes reached a record 11.7bn litres in the first nine months, and the company added 85 new service stations, including 72 in Saudi Arabia.
Acting CFO Ali Siddiqi spoke to Gulf Business editor, Neesha Salian, about the drivers of this success, the company’s ambitious expansion plans, and its push into technology, EV infrastructure, and customer-centric innovation.
The year’s third quarter saw record EBITDA and net profits. What are the factors behind this growth?
Our growth story is translating strongly into numbers, which is always satisfying for a CFO. I would say the momentum comes from four key drivers.
First, retail fuels are performing exceptionally well across the GCC. We’ve recorded nearly nine per cent growth, setting new records every quarter. It’s a mix of macroeconomic growth, a growing population, strong vehicle sales, and the fact that we’ve invested in having the right assets, in the right locations, run by the right people.
Second, our non-fuel retail business is expanding even faster — gross profit grew by 14.7 per cent year-on-year, and transactions reached 39.6 million, up 10.2 per cent. This tells you our focus on convenience stores and our “Oasis by ADNOC” refresh are paying off.
Third, B2B fuel sales have grown well, driven by industrial demand and strong client relationships. And fourth, we’ve been very disciplined about margin management — optimising our portfolio mix and maintaining profitability despite expansion.
ADNOC Distribution added 85 new service stations this year, primarily in Saudi Arabia. How do you balance rapid expansion with returns?
Saudi Arabia is a new but highly strategic market for us. Our expansion there is built on a capital-light, dealer-owned company-operated model, meaning the dealers invest in the assets while we operate them to ADNOC standards.
This allows us to scale fast and build a strong footprint without straining capital. Once that foundation is set, we can fully capitalise on Saudi Arabia’s growth potential.
At the same time, we’re balancing our overall capital allocation between expanding our UAE network, investing in our C-store and non-fuel retail business, and developing new concepts such as “The Hub”, which will redefine the customer experience. Add to that our EV charging rollout and a focus on operational excellence, and we’re ensuring that every dirham spent today positions us for the next phase of growth.
You mentioned EV charging and The Hub as key future pillars. What’s the strategy behind those?
We’ve already installed close to 400 EV chargers across the UAE, and utilisation is rising steadily. What’s encouraging is that EV users aren’t just charging — they’re spending time in our C-stores, cafés, and quick-service restaurants. That’s a strong sign that the EV customer journey aligns perfectly with our retail model.
“The Hub” is another major evolution. It’s about taking the ADNOC experience beyond refuelling — creating a lifestyle and community space for modern customers. It will combine premium retail, dining, and convenience, setting a new standard for forecourt retail in the region.
Non-fuel retail is becoming a key growth pillar. What innovations should customers expect?
We see huge headroom for growth. Our coffee business, for instance, is already the top-rated coffee in the UAE, but we’re still expanding our food and beverage range with healthier and more premium options.
We’re also improving yields across our property rental portfolio, car wash, and automotive services. Every part of the forecourt is being reimagined to deliver value — from the customer’s perspective and from a shareholder’s perspective.
Technology and AI are core to ADNOC Distribution’s strategy. How are these investments shaping your operations and customer experience?
It’s not optional anymore — technology is embedded in everything we do. Whether we’re building a station, upgrading a store, or improving customer engagement, there’s a digital layer built in.
We currently have more than 20 AI initiatives active across the company. These range from hyper-personalised customer offers to inventory optimisation and predictive analytics. With a loyalty base of half a million members, AI helps us understand customer preferences in real time and tailor experiences accordingly.
In short, we’re not just adopting technology; we’re building an AI-native business that’s agile and customer-centric.
As CFO, how do you prioritise growth, investment, and shareholder returns?
Extending our dividend policy to 2030 with quarterly payouts from Q1 2026 is a top priority. At the same time, a resilient balance sheet enables us to fund growth while maintaining financial stability. Cost management is critical; we’ve committed to reducing like-for-like costs by Dhs183m and are nearly halfway there. Our approach ensures we invest wisely while keeping the business lean, profitable, and positioned for long-term growth.
In a volatile economic climate, what principles guide you and other CFOs in the region?
Three principles are key. First, world-class risk management — uncertainty is real, and robust mitigation is essential. Second, a resilient balance sheet capable of absorbing shocks without disrupting strategy.
Third, building and empowering the right team, with talent, vision, and ownership critical to navigating complexity. These principles help us sustain momentum and achieve strategic objectives even in uncertain times.
Read: ADNOC Distribution’s Athmane Benzerroug on robust results, customer experience and sustainability
