Adnoc Distribution announced its highest nine-month earnings before interest, taxes, depreciation, and amortisation (Ebitda) of $790 million (Dh2.90 billion) and underlying Ebitda of $721 million (Dh2.65 billion), marking a 5.9% and 11.6% year-on-year growth, respectively. The company's free cash flow reached $537 million (Dh1.97 billion) in the first nine months of 2024, maintaining a robust balance sheet with a net debt-to-Ebitda ratio of 0.56x as of September 30, 2024.
These financial achievements are attributed to strong retail and commercial performance, including record-high fuel volumes, robust non-fuel retail (NFR) contributions, and cost efficiency improvements. Ebitda growth and strong free cash flow were also supported by $13 million (Dh48 million) in like-for-like opex savings over the first nine months of 2024, putting the company on track to achieve $50 million (Dh184 million) in opex savings between 2024 and 2028.
Eng. Bader Saeed Al Lamki, CEO of Adnoc Distribution, highlighted the company's solid fundamentals and strategic execution. The company expanded its domestic retail presence and market share while seeing growing returns from international expansion. To continue unlocking shareholder value, Adnoc Distribution is pursuing AI, advanced digital technologies, and innovation-enabled growth across its value chain.
The H1 2024 dividend of $350 million (Dh1.285 billion) was distributed in October, aligning with the approved five-year policy. The H2 2024 dividend will be paid in April 2025, subject to board and shareholder approval. Adnoc Distribution exceeded 11 billion litres in total fuel volumes, a 9.2% year-on-year increase, driven by network expansion, economic growth, and international operations. Non-fuel retail transactions grew by 9.4% year-on-year, with a 10.3% growth in Q3 alone.
The convenience store conversion rate reached 25.5% over the nine-month period, the highest in five years, including 25.9% in Q3 2024. Key growth initiatives included expanding premium food and beverage offerings, enhancing car services, and optimizing real estate. Adnoc Voyager maintained its leading position as the UAE's top lubricant brand, now available in 43 countries.
Adnoc Distribution added 19 new service stations in the first nine months of 2024, bringing the total to 855 across the UAE, Saudi Arabia, and Egypt. Eight of these, launched in Dubai in Q3, cater specifically to trucks. As of September 30, 2024, the UAE network included 112 fast and super-fast charging points, with plans to reach 150-200 by the end of 2024.
Adnoc Distribution is actively pursuing more than 20 AI-focused projects, integrating AI and advanced technologies across all business segments. The company has earmarked $250-300 million in CAPEX for 2024, with 70% directed towards growth initiatives. Since its IPO in 2017, Adnoc Distribution has delivered significant returns to shareholders through market value enhancement and consistent dividends, including $4.4 billion in dividends.
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