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ADNOC Distribution, the UAE’s largest fuel and convenience retailer, reported robust H1 2025 results, with its highest-ever half-year EBITDA and a significant 12 per cent growth in net profit.
In this interview with Gulf Business, Athmane Benzerroug, chief strategy, transformation and sustainability officer, sheds light on the key factors behind this strong performance, including record fuel volumes, booming non-fuel retail, and strategic investments in AI, EV infrastructure, and international expansion, all while maintaining a strong focus on sustainability and customer experience.
ADNOC Distribution recently reported a 12 per cent growth in net profit and its highest ever EBITDA for H1 2025. What are the key factors behind this strong performance? How do you see momentum going forward?
The company recorded double-digit growth in both EBITDA and net profit — with EBITDA up 10 per cent and net profit increasing by over 12 per cent . This performance is driven primarily by record fuel volumes across our network — the highest since our IPO eight years ago. Volumes in the GCC (UAE plus Saudi Arabia) rose 7 per cent , and when including Egypt, total fuel volumes increased by 6 per cent. Retail fuel volumes — everyday customers fueling vehicles — grew by 6 per cent, while commercial fuel volumes rose 4 per cent. Notably, our commercial business posted a 30 per cent growth in EBITDA, significantly outperforming volume growth, thanks to profitable customer acquisition.
Overall, we processed 122 million transactions this semester, with fuel transactions up 5–6 per cent, and non-fuel retail transactions growing twice as fast at 10 per cent .
Can you explain what constitutes the non-fuel retail business and its contribution?
Non-fuel retail includes convenience store purchases, car wash services, quick service restaurants, and other in-station offerings beyond fuel. This segment now accounts for 15 per cent of our gross profit and is growing about five times faster than the fuel business. Commercial business’ EBITDA is growing even faster at 22 per cent.
This non-fuel retail segment is a key strategic focus, leveraging our network of over 500 stations in the UAE — more than 65 per cent of the country’s total — far surpassing competitors like ENOC and Emarat.
How are you leveraging technology to enhance customer experience and loyalty?
Our ADNOC Rewards app, launched two and a half years ago, now has 2.5 million users — over half of UAE drivers. The app drives customer loyalty by rewarding points redeemable on fuel discounts, convenience store products, car washes, and with over 140 partner discounts, including airline miles.
We use AI-powered features like license plate recognition to enable seamless fuelling experiences — customers can set fuel preferences, pay through mobile wallets, and even get personalised offers on food and beverages. Given government-set pump prices in the UAE, the loyalty programme and network scale are critical for attracting repeat business.
What are the growth and upgrade plans for the second half of the year?
We expect continued strong growth across fuel retail, non-fuel retail, and commercial segments. We’re upgrading convenience stores with specialty coffee, fresh food, and high-margin offerings that resonate well with customers.
We’re also enhancing customer experience through modernised automatic car washes with eco-friendly chemicals and improved lighting, and expanding our quick service restaurant partnerships with brands like Al Baik, McDonald’s, and Starbucks.
Our network is segmented by station throughput, allowing us to tailor offerings and attract both traditional gasoline drivers and the growing EV market.
Speaking of EVs, how is ADNOC Distribution advancing in electric vehicle infrastructure?
We currently operate over 300 strategically located EV charging stations offering fast and ultra-fast charging. The E2GO business is regulated with high margins, and energy sales have doubled year-on-year. We serve both individual EV drivers and fleet operators such as taxis, who benefit from off-peak charging options.
What are your international market highlights?
Aviation business revenue grew 20 per cent and is fully dollar-denominated, insulating us from local currency volatility in Egypt and elsewhere. Egypt now contributes about 5–6 per cent of group EBITDA, surpassing initial expectations.
In May, ADNOC Distribution launched the Voyager lubricant line nationally across Egypt, expanding its distribution to third-party retail stores for the first time. The company has set a target of 3,000 points of sale in Egypt by the end of 2026, further strengthening its regional presence. Egypt remains a core focus market for ADNOC Distribution, as the company continues to expand its global footprint. ADNOC Voyager, the UAE’s number one lubricant brand by market share, is now exported to more than 47 countries around the world.
In Saudi Arabia, we have doubled our network from 70 to 140 stations over six months, operating under a dealer-owned, company-operated (DOCO) model that requires no capex from us but expands our footprint rapidly.
Sustainability is part of your remit. How is ADNOC Distribution progressing on this front?
Sustainability is embedded in daily operations, with a target to reduce scope 1 and 2 emissions intensity by 25 per cent by 2030 compared to 2021.
We have four key initiatives:
- Energy optimisation across stations through efficient lighting, air conditioning, and building design.
- Solar photovoltaic (PV) installations powering over 25 stations this year, expanding to more than 50, including Abu Dhabi.
- Conversion of 100 per cent of our supply chain fleet to biofuel.
- Real-time fleet management using AI and augmented reality to optimise fuel efficiency. Our ESG ratings have improved substantially — we’re now in the top quartile among international peers across major agencies like Sustainalytics, S&P, MSCI, and Bloomberg. Additionally, our EV charging infrastructure helps customers reduce carbon footprints.
What are your key priorities over the next six months to a year?
First, customer experience and safety remain top priorities. We aim to continue growing earnings and sustain a robust dividend policy, targeting at least 21 fils per share annually — equating to roughly $700m distributed yearly for the next five years.
In October, we will pay a 10.3 fils dividend backed by strong cash flow and double-digit earnings growth.
Finally, what leadership lessons have been most valuable to you?
After seven years with ADNOC Distribution, the key lesson is the power of teamwork. Under strong leadership, we have transformed our stations significantly. Success depends on empowering the people on the ground and working as one team focused on customer experience.
Embedding AI into decision-making is critical too — with over 250 million transactions processed yearly and 2.5 million active customers, leveraging data for growth and optimization is central to our strategy.
