ADNOC Distribution Reports 21% Profit Surge in Q1 2026

Post by : Bianca Suleiman

ADNOC Distribution announced impressive financial results for the first quarter ending March 31, 2026, boosted by increased fuel sales, retail expansion, and growing international presence.

The company achieved a landmark first-quarter EBITDA of $307 million, representing an 11.7% jump compared to the same period last year. Net profit surged 20.7% year-on-year to reach $210 million.

Key growth drivers included rising fuel volumes, enhanced performance from the commercial sector, and a thriving non-fuel retail (NFR) business, alongside improved earnings from overseas markets. ADNOC Distribution highlighted the resilience of its operations across the UAE, Saudi Arabia, and Egypt.

The firm continues to invest in various segments, including fuel retail, lubricants, convenience stores, and car services. Retail activities now account for about 70% of total fuel volumes, with commercial segments contributing the remaining 30%.

Bader Saeed Al Lamki, the CEO of ADNOC Distribution, remarked that the company commenced 2026 with robust momentum despite fluctuating market conditions.

He noted that the ongoing expansion of the service station network and the growing non-fuel retail profits affirm the effectiveness of ADNOC Distribution's long-term strategy. The company's solid balance sheet and cash generation position it favorably for future growth and continued stability.

In the first quarter, ADNOC Distribution added 22 new service stations, elevating its total network to 1,032 stations. The company plans to introduce an additional 60 to 70 stations throughout 2026.

Fuel volumes reached a remarkable 3.82 billion liters this quarter, marking a 2.4% increase over last year.

The non-fuel retail arm also exhibited robust growth, with gross profit climbing 10% year-on-year. ADNOC Distribution reaffirmed its plans to launch five more "The Hub by ADNOC" locations in 2026.

The Hub by ADNOC features retail spaces that are nearly three times larger than standard service stations. The company aims to operate 30 Hub sites by 2030, expecting an EBITDA contribution of $30 million.

The Board of Directors has also approved the inaugural quarterly dividend for 2026, with shareholders to receive 5.14 fils per share in June 2026 as part of the newly established quarterly dividend framework.

The dividend policy, recently extended until 2030 following approval at the Annual General Assembly in March, ensures annual returns of $700 million or at least 75% of net profit, whichever is greater, offering investors long-term dividend visibility and prospects for growth.