Adnoc Distribution, the UAE’s largest fuel and convenience retailer, has posted a 21.5 per cent annual increase in its third-quarter profit, driven by a surge in retail fuel volumes.
Net profit attributable to the company’s shareholders in the three months ended September climbed to $221 million, the Abu Dhabi National Oil Company unit said on Friday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue for the three-month period was up 2.7 per cent, reaching $2.54 billion.
The company said it achieved record quarterly earnings before interest, taxes, depreciation and amortisation (Ebitda) – a key measure of profitability – of $319 million in the third quarter, up 15.9 per cent year on year.
The first nine months of the year also saw Adnoc Distribution achieve its highest Ebitda of $885 million, an increase of 12 per cent year on year, marking the company's strongest nine-month performance since listing in 2017, it said.
Net profit for the January to September period grew by 15.6 per cent over the same period last year, to $579 million. Revenue for the nine-month period was, however, down slightly at $7.2 billion.
The company said it also achieved its highest nine-month fuel volumes of 11.7 billion litres, marking a 5.9 per cent year on year increase.
“Adnoc Distribution’s record performance this year is a testament to the progress we have achieved to date against our five-year growth strategy, furthering our transformation into a mobility and convenience retail leader,” said Bader Al Lamki, chief executive of Adnoc Distribution.
“Our strongest quarterly Ebitda ever, combined with a rapidly expanding network, demonstrates the fundamental strength of our business and a firm belief in our long-term growth prospects."
Adnoc Distribution has 977 service stations – 562 in the UAE, 172 in Saudi Arabia, and 243 in Egypt. The company recently said it aims to increase the size of its service station network to 1,150 by 2028, 15 per cent more than the previous guidance of 1,000.
Non-fuel retail expansion
Non-fuel retail continued to deliver strong momentum for Adnoc Distribution in the third quarter, with gross profit growing annually by 14.7 per cent, the company said on Friday.
The company's financial results come a month after it announced a major revamp of its Adnoc Oasis convenience brand with the launch of Oasis by Adnoc, offering a premium ‘On-the-Gourmet’ concept. The move underpins the company’s strategy to elevate customer experience and boost the UAE's mobility retail sector.
The growth is complemented by company’s 382 Adnoc Oasis convenience stores, vehicle inspection centres, and other services including car wash and lube change. The company also has 368 EV charging points installed under the E2GO brand in the UAE.
"By focusing on non-fuel retail, including through a refreshed Oasis by Adnoc brand and our property network, we are building a flexible mobility and convenience platform responsive to evolving customer needs, while creating sustainable, long-term value for shareholders,” Mr Al Lamki said.
The confidence is reflected in the company's revised expansion targets and the extension of its dividend policy for an additional two years, he added.
Adnoc Distribution recently announced a proposed extension of its dividend policy to 2030, subject to shareholder approval, with payouts to now occur on a quarterly basis from the first quarter of 2026. The company last month approved an interim dividend of Dh1.285 billion for the first half of 2025.
The dividend extension and the shift to quarterly payments are expected to "offer upside" from future earnings growth while rewarding shareholders more frequently, the statement said. The announcement brings the company’s total announced dividend commitments to a minimum of $4.9 billion between 2023 and 2030, at an annual payout of $700 million or a minimum of 75 per cent of net profit, whichever is higher, it added.
yallacompare profile
Date of launch: 2014
Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer
Based: Media City, Dubai
Sector: Financial services
Size: 120 employees
Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)
Last-16 Europa League fixtures
Wednesday (Kick-offs UAE)
FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm
Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm
Inter Milan v Getafe (one leg only) 11pm
Manchester United (5) v LASK (0) 11pm
Thursday
Bayer Leverkusen (3) v Rangers (1) 8.55pm
Sevilla v Roma (one leg only) 8.55pm
FC Basel (3) v Eintracht Frankfurt (0) 11pm
Wolves (1) Olympiakos (1) 11pm
The stats
Ship name: MSC Bellissima
Ship class: Meraviglia Class
Delivery date: February 27, 2019
Gross tonnage: 171,598 GT
Passenger capacity: 5,686
Crew members: 1,536
Number of cabins: 2,217
Length: 315.3 metres
Maximum speed: 22.7 knots (42kph)
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Heather, the Totality
Matthew Weiner,
Canongate
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
