ADNOC Group’s publicly traded portfolio companies combined to deliver over $2.3bn (AED8.4bn) in first quarter net profit, reflecting their resilient business models and ability to generate robust profits in evolving market conditions.
Each of the six companies delivered strong financial results in the first quarter, alongside clear progress on strategic priorities aimed at driving profitable growth.
ADNOC Distribution delivered first quarter net profit of $174m (AED639m), up 16 per cent year-on-year, and its highest-ever first quarter EBITDA behind record Q1 fuel sales and strong performance in non-fuel retail.
ADNOC results
The company added 20 new service stations to its network in the quarter, bringing the total to 915 and putting it on track to meet its target of 40-50 new stations by the end of 2025.
ADNOC Distribution also reaffirmed its commitment to its dividend policy, aiming for an annual payout of $700m (AED2.57bn) equivalent to (20.57 fils per share) or at least 75 per cent of net profit, whichever is higher, through 2028.
ADNOC Drilling reported strong first quarter results with revenue up 32 per cent to $1.17bn (AED4.30bn) year-on-year (y-o-y), EBITDA up 22 per cent to $533m (AED1.96bn) y-o-y and net profit increasing 24 per cent to $341m (AED1.30bn) y-o-y.
The company also announced new contract awards worth over $2.4bn (AED8.8bn) providing unmatched multi-year earnings visibility and adding to its multi-billion-dollar revenue pipeline.
Additionally, ADNOC Drilling’s Board of Directors approved quarterly dividend distributions, resulting in a payment of $217m (AED796m) for the first quarter of 2025.
For 2025, ADNOC Drilling expects to deliver revenues between $4.60 – 4.80bn (AED16.9 – 17.6bn) and net profit between $1.35 – 1.45bn (AED4.95 – 5.32bn).
ADNOC Gas reported a net income of $1.27bn (AED4.7bn) for Q1 2025, up 7 per cent year-on-year, and EBITDA of $2.16bn (AED7.9bn), up 4 per cent year-on-year, driven by increased domestic gas demand and efficient management of the planned shutdown programme, which boosted processing capacity.
The company continues to invest to achieve its longer-term EBITDA growth target of over 40 per cent between 2023 and 2029. Significant LNG supply agreements worth $9bn (AED30.24bn) were signed with Indian Oil Corporation and JERA Global Markets, and capital expenditures increased by 43 per cent year-on-year.
On May 13, ADNOC Gas was selected for inclusion in the MSCI Emerging Markets Index after meeting the necessary criteria. The inclusion will take effect from June 2, and is expected to increase cash inflows by between $300-$500m (AED1.0 – 1.8bn) and attract more international institutional investors.
ADNOC Logistics & Services plc (ADNOC L&S) reported strong Q1 2025 financial results with a 41 per cent increase in revenue to $1.2bn (AED4.34bn) and a 20 per cent rise in EBITDA to $344m (AED1.26bn), backed by strong performance across all business segments.
The results underpin the resilience of the company’s diversified business model where growth from the Integrated Logistics segment offset lower seasonal shipping rates.
ADNOC L&S maintained both its 2025 net income and EBITDA guidance and its medium-term guidance, reflecting its continued positive long-term growth and strategic expansion.
Borouge reported strong Q1 2025 results with net profit of $281m (AED1.03bn), driven by year-on-year increases of 10 per cent for sales volumes and 7 per cent for production volumes.
Revenue grew by 9 per cent year-on-year to $1.42bn (AED5.21bn), with EBITDA of $564m (AED2.07bn), maintaining industry-leading margins of 40 per cent.
The company also announced it has purchased over 89m of its own shares since launching its share buyback programme in April, reflecting its strong confidence in its future prospects.
Borouge will increase its 2025 annual dividend to 16.2 fils per share, which is expected to be maintained until 2030 by Borouge Group International (BGI) following completion of the BGI transactions that are expected to close in Q1 2026.
Fertiglobe announced strong Q1 2025 results, with revenues up 26 per cent and adjusted EBITDA rising 45 per cent year over year.
Adjusted net profit would have been up 306 per cent excluding last year’s one-off foreign exchange revaluation gain, driven by higher urea prices and operational gains.
The company also launched its “Grow 2030 Strategy” to deliver $1bn in EBITDA by 2030, focusing on operational excellence, customer proximity product expansion, and disciplined low-carbon ammonia growth.
Fertiglobe’s optimisation initiatives are enhanced by ADNOC’s full support to integrate and optimise $15 – 21m (AED55.1 – 77.1m) of the company’s fixed costs in addition to $10m (AED36.7m) in annual interest savings via direct and indirect financing support. Combined, these would lead to ~13-16 per cent after tax earnings per share growth by the end of 2025.
The company also reaffirmed its dividend policy to substantially pay out all excess free cash flows after providing for growth opportunities, and in April initiated a share buyback programme to repurchase up to 2.5 per cent of its outstanding shares.
