Abu Dhabi: ADNOC Distribution reported record financial results for the first half of 2026, with net profit rising 59% year-on-year to $568 million, supported by strong operational performance, higher fuel volumes, network expansion and inventory gains.The company said reported EBITDA increased 39% to $786 million, while underlying EBITDA climbed 14% to $603 million compared with the same period last year.Growth was driven by record fuel sales, continued expansion of its retail network and sustained momentum in its higher-margin non-fuel retail (NFR) business.Record fuel volumes and network expansionFuel volumes reached a record 7.75 billion litres during the first six months of the year, supported by network growth and resilient demand from both retail and commercial customers.ADNOC Distribution expanded its fuel retail network across the UAE, Saudi Arabia and Egypt to 1,045 service stations, representing an 11% increase year-on-year.Eng. Bader Saeed Al Lamki, Chief Executive Officer of ADNOC Distribution, said the results demonstrate the resilience of the company's diversified business model despite a dynamic macroeconomic environment."Despite a dynamic macroeconomic environment, ADNOC Distribution delivered another record performance in the first half of 2026, demonstrating the resilience of our diversified business model and the strength of our growth strategy."He added that the company continues to focus on growing higher-margin opportunities while strengthening its core fuel retail business.Non-fuel retail drives profitabilityThe non-fuel retail segment remained a key contributor to earnings growth, with gross profit increasing 12% year-on-year.The growth was supported by higher customer footfall, increased transactions and an expanded food and convenience offering across the network.ADNOC Distribution said its "The Hub by ADNOC" roadside retail concept continued to support growth during the period. Featuring retail space approximately three times larger than traditional service stations, the concept is expected to generate annual EBITDA of $30 million by 2030.The company is also broadening its food and beverage offering through a strategic partnership announced in May with Americana Restaurants International, which aims to open up to 200 quick-service restaurant outlets across ADNOC Distribution locations.Expanding EV and digital capabilitiesAs part of its transformation into a mobility and convenience retail company, ADNOC Distribution launched the region's largest electric vehicle charging hub on the E11 highway connecting Abu Dhabi and Dubai.Its E2GO charging network expanded by more than 35% year-on-year during the first half of 2026, while energy sold through the network increased by 2.1 times compared with the same period last year.The company said electric vehicles charged through its network travelled 27.4 million low-emission kilometres during the first six months of 2026, doubling the figure recorded a year earlier.In July, ADNOC Distribution also launched Engage by ADNOC, described as the UAE's first full-funnel retail media network operated by a mobility and convenience retailer.Supported by ADNOC Group's Artificial Intelligence and Digital Transformation programme, the platform is designed to create a new data-driven revenue stream.The company is currently advancing more than 20 artificial intelligence initiatives across its operations, including customer engagement programmes. Membership of the ADNOC Rewards app approached 2.8 million users during the first half of the year.International expansionADNOC Distribution is continuing its international growth strategy through the proposed acquisition of Shell's downstream business in South Africa.In July, the company signed a definitive agreement for the transaction, which carries an implied enterprise value of approximately $1 billion, subject to regulatory approvals.The acquisition is expected to deliver a 6% earnings-per-share uplift in the first full year after completion, anticipated in 2027, and supports ADNOC Distribution's ambition to become a leading global mobility retailer.Dividend approvedThe company's board approved a Q2 2026 dividend of 5.14 fils per share, equivalent to $175 million, which is scheduled to be paid in September.The payout is in line with ADNOC Distribution's dividend policy of distributing $700 million annually or at least 75% of net profit, whichever is higher.Following the second-quarter payment, ADNOC Distribution will have distributed an estimated $5.8 billion (AED21.5 billion) in dividends since its initial public offering.
