ADNOC Distribution, the UAE’s largest fuel and convenience retailer, which is listed on the Abu Dhabi Securities Exchange (ADX), will today hold an Investor Day, providing the market with an update on the Company’s achievements and strategic growth initiatives.
During 2023, the Company witnessed double-digit growth in total fuel volumes across the GCC markets, as well as in its non-fuel retail business, achieving a four-year-high fuel to convenience store conversion rate of 25%. As part of its new business strategy, ADNOC Distribution will continue to invest in the growing and highly attractive core UAE market.
The Company also aims to unlock incremental value from its existing network by growing its non-fuel retail business and optimizing real estate assets. This will position ADNOC Distribution as the brand of choice for retail and commercial customers.
As part of its new growth strategy, the Company plans to increase the contribution from international operations in Saudi Arabia and Egypt while exploring accretive inorganic opportunities supported by a robust balance sheet and strong cash flow generation. Moreover, the Company aims to further improve its operational efficiency, targeting up to $50 million of additional savings by 2028 on top of the $130 million in like-for-like cost savings already delivered in 2019-23.
ADNOC Distribution is prioritizing innovation and enhancing customer experience in line with its strategic objectives. A renewed focus on driving seamless customer journeys through digital and hyper-personalization will drive improved brand engagement and increased footfall.
ADNOC Distribution is placing sustainability at the core of its day-to-day operations, reducing its carbon footprint while exploring emerging opportunities and enabling customers to decarbonize. The Company also aims to lead the energy transition through a targeted roll-out of EV chargers, building a network of over 500 fast and super-fast charging points across the UAE by 2028 to unlock new revenue streams and further futureproof its business.
The Company, which successfully delivered on its previous commitment of reaching $1 billion in earnings before interest, tax, depreciation and amortization (EBITDA) in 2023, will deliver further EBITDA growth in the 2024-2028 period, while it positions itself as a multi-energy, convenience and mobility leader. ADNOC Distribution is scaling up its portfolio of low-carbon energy solutions including biofuels, EV and hydrogen to support de-carbonization of the transport industry and expanding its non-fuel retail offerings.
ADNOC Distribution is a leading mobility retailer in UAE. The Company has been providing energy for customers’ journeys since 1973. Since this time, the Company has continuously been at the forefront of providing the best in customer service.
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