Increased fuel sales and corporate expansion have led to an over 12% rise in Adnoc's net profit during the first half of 2025 in the UAE.
Adnoc Distribution Expands EV Charging Network and Retail Business
Adnoc Distribution, the UAE's leading fuel supplier, is aggressively growing its non-fuel retail business and electric vehicle (EV) charging network in the UAE and Saudi Arabia. This strategic move is aimed at diversifying revenue streams and capturing growing demand for convenience and mobility services.
In the first half of 2025, Adnoc Distribution's non-fuel retail gross profit increased by 14.9% year-over-year (YoY), with transaction volumes up 10.4% YoY. This strong performance reflects the growing demand for convenience services beyond traditional fuel sales. The company's Adnoc Rewards loyalty program also expanded by 19.5% YoY to nearly 2.5 million users in the UAE.
The company's network expansion is another key aspect of its strategy. Adnoc Distribution added 47 new service stations in the first half of 2025, increasing its total network to nearly 940 locations. A majority of these new stations are in Saudi Arabia, where the company is leveraging its Capex-light Dealer Owned-Company Operated (DOCO) business model. This model has enabled Adnoc Distribution to double its Saudi network YoY, from 69 to 140 stations. The company has revised its expansion guidance upwards to 60 to 70 new stations by the end of 2025, with 50 to 60 in Saudi Arabia.
Adnoc Distribution is also focusing on electric vehicle infrastructure. While explicit recent figures on the EV charging network were not detailed in the latest reports, the company has identified unlocking new revenue streams through sustainability initiatives, including electric vehicle charging, as part of its strategic growth in the region. This aligns with broader regional trends towards EV adoption and mobility diversification in both the UAE and Saudi Arabia.
The company's financial performance is also strong. Adnoc Distribution saw a record first-half fuel volumes of 7.62 billion litres during H1 2025, up 5.6% from the same period last year. This contributed to a net profit of $358 million for the first half of 2025, a 12.2% increase year on year. The company expects an annual payout of $700 million through 2028, representing an annual yield of nearly six per cent at a share price of Dh3.70 as of August 6, 2025.
Bader Saeed Al Lamki, CEO of Adnoc Distribution, stated that the non-fuel retail business continues to drive strong growth. The company is targeting 3,000 points of sale in Egypt by the end of 2026. A dividend of $350 million for H1 2025 is expected to be distributed in October 2025, subject to board approval.
In conclusion, Adnoc Distribution’s strategy centers on expanding its network rapidly, especially in Saudi Arabia using the scalable DOCO model, while driving non-fuel retail growth and developing EV charging infrastructure to tap into future mobility trends and sustainability goals, fueling its strong financial performance and regional presence.
[1] Adnoc Distribution H1 2025 Results Press Release, Link [2] Adnoc Distribution's Sustainability Report 2024, Link [3] Adnoc Distribution's Annual Report 2024, Link [4] Adnoc Distribution's Investor Presentation H1 2025, Link [5] Adnoc Distribution's Financial Statements H1 2025, Link
- The growth strategy of Adnoc Distribution, the UAE's leading fuel supplier, extends beyond just fuel sales, and includes expansion in industries such as entertainment, technology, sports, and real estate through diversified revenue streams.
- Despite the focus on non-fuel businesses, Adnoc Distribution's core business in the energy sector remains strong, evidenced by a 12.2% increase in net profit for the first half of 2025.
- The company's investments in sustainability initiatives, such as developing electric vehicle charging infrastructure, align with trends in the technology industry and regional commitments towards environmental sustainability.
- As part of its regional growth strategy, Adnoc Distribution is planning to expand its non-fuel retail business into new markets, including Egypt, reinforcing its presence not only in the energy industry but also in the business sector.
