Adnoc Distribution hits $1b EBITDA milestone in 2023
ADNOC Distribution, a leading fuel distributor, has unveiled its financial results for 2023, achieving a significant milestone by surpassing $1 billion in earnings before interest, tax, depreciation, and amortization (EBITDA). The company reports a noteworthy 4.6% year-on-year increase in EBITDA, reaching $1.002 billion, showcasing a steady growth trajectory and exceeding market expectations. This accomplishment underscores ADNOC Distribution’s commitment to delivering on its strategic objectives outlined during its inaugural Capital Markets Day in May 2019.
ADNOC Distribution attributes its strong performance to a combination of factors, including a double-digit increase in fuel volumes and non-fuel business, along with a rising contribution from international operations. Moreover, the company’s focus on efficiency improvement initiatives has resulted in significant like-for-like operating expenditure (OPEX) savings, totaling $28 million (AED103 million).
CEO Bader Saeed Al Lamki underscores the transformative nature of 2023, driven by ADNOC Distribution’s relentless pursuit of execution excellence and future-proofing the business. Looking ahead, the company’s Board of Directors has approved a new five-year strategy for 2024-28, with a key focus on sustainable mobility and convenience, aimed at optimizing existing assets and generating new revenue streams to enhance shareholder value.
ADNOC Distribution continues to pioneer innovation in customer experience, with the introduction of AI-enabled technology at its service stations, aimed at providing a hyper-personalized fueling experience. Additionally, the company’s commitment to sustainability is evident through initiatives such as transitioning its heavy fleet to run on biofuel and the installation of solar panels across its service network.
ADNOC Distribution’s strategic allocation of capital for growth has enabled it to capitalize on new opportunities in both domestic and international markets. In 2023, the company exceeded its target of opening new service stations, further expanding its network and solidifying its position as a market leader in the fuel distribution sector. With a strong financial performance in 2023 and a clear vision for future growth, ADNOC Distribution remains poised for continued success in the years to come, driven by its unwavering commitment to excellence, innovation, and sustainability.