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ADNOC Distribution Reveals New 5-Year Growth Strategy
(27 February 2024)


The management of ADNOC Distribution revealed its new 5-year growth strategy at an Investor Day in Abu Dhabi on Monday.

Speaking at the Investor Day event, Bader Saeed Al Lamki, CEO of ADNOC Distribution, said, “ADNOC Distribution’s new growth strategy is underpinned by three key drivers: domestic growth, international platforms, and future-proofing the business. 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 to support the decarbonisation of the transport industry.”

Highlights from the new five-year strategy’s operational objectives for 2028 included growing the ADNOC Distribution network to 1,000 service stations, a +20% increase compared to 840 stations in 2023, delivering a 50% increase in the number of non-fuel transactions, and achieving a 25% increase in the number of convenience stores.

The strategy also includes scaling up franchise and sub-franchise models with 50+ Company operated new franchise operations, providing a 2-3X yield versus the traditional rental model, becoming a one-stop shop for car care, tripling the number of car washes, doubling the number of automotive oil changes and expand total car service offerings.

Additionally, to 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 subscription services for carwash and other services. Target a minimum of 500 EV fast and superfast charging points to build a national network, a 10X increase from 2023.

ADNOC Distribution also aims for up to $50 million in like-for-like OPEX savings by 2028, allocating $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 of 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 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.

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