ADNOC Distribution drives expansion in Saudi Arabia and Egypt with record fuel sales
ADNOC Distribution, the largest fuel retailer in the United Arab Emirates, continues to strengthen its regional presence with a robust expansion strategy focused on Saudi Arabia and Egypt. The company, which is listed on the Abu Dhabi Stock Exchange, achieved its highest ever fuel sales volume in the first quarter of 2025, with 3.7 billion litres, driven by increased market share, growth in local demand and the expansion of its network of service stations.
In Saudi Arabia, ADNOC plans to open between 40 and 50 new stations throughout this year, and has already contracted 15 of them in the first quarter, according to an official statement from the company. This expansion responds to the strong growth of the retail fuel market in the Kingdom, which is considered ‘large and expanding’. The station network in Saudi Arabia grew by 67% year-on-year, reaching 115 stations at the end of March 2025, compared to 69 the previous year.
To optimise its investments, the company has adopted the agent-owned station model (franchises operated by third parties but managed by ADNOC), which has enabled it to reduce capital expenditure on expansion.
At the same time, ADNOC Distribution has also strengthened its presence in Egypt. During the first quarter of the year, it took advantage of the boom in the tourism sector to increase its aviation fuel sales by 22.9% year-on-year, reaching 61 million litres. This growth contributed to an overall increase of 6.2% in commercial fuel sales in Egypt, which totalled 134 million litres.
In financial terms, the company reported a net profit attributable to shareholders of 639 million dirhams (approximately 174 million dollars), 16.2% more than in the same period last year. This growth was driven by lower financing costs, a slight increase in fuel sales and a higher contribution from the non-fuel retail segment.
However, total revenue fell by 3.2% year-on-year to approximately 8.47 billion dirhams, mainly due to lower sales prices as a result of the fall in international oil prices. Despite this, the company believes that its business model is resilient and robust, even in an environment of low oil prices.
‘Lower fuel prices directly benefit our consumers and increase footfall at our stations, although our convenience business is not directly linked to oil prices,’ Ali Siddiqi, ADNOC Distribution's chief financial officer, told The National.
Regarding the overall impact, Siddiqi noted that international trade tensions and the weak dollar have had a limited effect on the company, thanks to a largely localised supply chain.
He also highlighted the strong performance of its non-fuel retail business, whose gross profit grew 14% year-on-year to 228 million dirhams. Meanwhile, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 11% to a record 1.01 billion dirhams, the highest since its IPO in 2017.
ADNOC Distribution CEO Bader Al Lamki underscored the company's commitment to innovation and continuous improvement. ‘We remain focused on expanding our network, enhancing the customer experience and capturing new opportunities. Our goal is to set new standards in the industry,’ he said.
As part of its vision for the future, ADNOC has been integrating advanced technologies into its operations. It is currently developing more than 20 artificial intelligence-based tools to optimise processes and improve efficiency. In addition, the Emirati company has unveiled a robotic arm concept for charging electric vehicles, although it has no plans to implement it in the short term.