ABU DHABI, UAE: ADNOC Distribution, the UAE’s largest fuel and convenience retailer, announced its new five-year growth strategy at an Investor Day in Abu Dhabi on Monday, 26 February. The Company aims to establish itself as a multi-energy, convenience, and mobility leader by expanding its network, enhancing its customer experience, and scaling up its low-carbon energy solutions.

The new growth strategy is supported by the Company’s robust balance sheet and strong cash flow generation, and is underpinned by three key drivers: domestic growth, international platforms, and future-proofing the business.

Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “In its pursuit to become a multi-energy leader, the Company is also scaling up its portfolio of low-carbon energy solutions including biofuels, EV and hydrogen in support of the decarbonization of the transport industry. We are confident in our ability to continue returning positive incremental shareholder value.”

Some of the highlights from the new five-year strategy’s operational objectives for 2028 included:

• Grow the ADNOC Distribution network to 1,000 service stations, a +20% increase compared to 840 stations in 2023.
• Deliver a 50% increase in the number of non-fuel transactions.
• Achieve 25% increase in the number of convenience stores.
• Scale up franchise and sub-franchise model with 50+ company operated new franchise operations, providing a 2-3X yield versus traditional rental model.
• Become a one-stop shop for car care; triple the number of car washes, double the number of automotive oil changes and expand total car service offerings.
• Launch new innovations and expand on current digital enhancements, including seamless fueling through license plate recognition, in-car ordering through the ADNOC Distribution application, and explore future subscriptions services for carwash and other services.
• Target a minimum of 500 EV fast & superfast charging points to build a national network, a 10X increase from 2023.
• Aim for up to $50 million in like-for-like OPEX savings by 2028.
• Allocate $250 to $300 million annually for CAPEX, with 70% focused on growth.
• The new dividend policy proposal will provide $700 million annually or a minimum 75% of net profit, whichever is higher, offering dividend upside potential from future earnings growth. The proposal is subject to shareholder approval at the AGM in March.

ADNOC Distribution is committed to continue delivering EBITDA growth from 2024 to 2028 through its identified key strategic initiatives and focus areas. The Company will reallocate capital towards convenience and mobility to transform its stations into destinations-of-choice, continue to build on its international platforms with a focus on increased contributions, and future proof the business by unlocking new revenue streams offered by the energy transition.

The Investor Day, held in Abu Dhabi, was attended by more than 50 investors and analysts from UAE and abroad and was followed by a field visit to the flagship ADNOC service station 933, where the Company demonstrated the latest offerings and innovations, including high-speed electric vehicle (EV) charging points, seamless payment methods and digitally enhanced services.

ADNOC Distribution is a leading mobility retailer in UAE. The Company has been providing energy for customers’ journeys since 1973. Since this time, the Company has continuously been at the forefront of providing the best in customer service. Today, ADNOC Distribution enables, enhances, and energizes every customer journey thanks to digitally enabled, innovative customer experiences and high-quality non-fuel retail products.

The Company operates service stations in all seven emirates in its home country, plus Saudi Arabia, and sells lubricants in 37 countries across the world via distributors. Now in its 51st year, ADNOC Distribution has 840 service stations, 529 in the UAE and 311 in Saudi Arabia.

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