Adnoc Distribution, the leading fuel and convenience retailer in the UAE, is actively exploring opportunities for strategic investments to grow its business, according to the company’s CEO, Bader Al Lamki.
As a publicly traded entity on the Abu Dhabi Securities Exchange, Adnoc Distribution currently operates over 570 service stations across the UAE, Saudi Arabia, and Egypt. Additionally, the company has a significant presence in the lubricants sector, operating in 32 countries.
CEO Bader Al Lamki stated during the Adipec conference in Abu Dhabi that the company is consistently on the lookout for suitable investment prospects, emphasizing their cautious and selective approach. He stressed the importance of adding value and maximizing returns for shareholders in any potential investment.
While Mr. Al Lamki did not disclose specific markets for expansion, he highlighted the Middle East and North Africa (MENA) region as a priority. He also mentioned that other regions could be considered, provided they meet the company’s criteria, such as a conducive regulatory framework, demand for services, population growth, GDP expansion, and infrastructure development.
In a significant move earlier this year, Adnoc Distribution acquired a 50% stake in TotalEnergies Marketing Egypt, adding 240 new service stations to its network. Furthermore, the company recently opened three Adnoc-branded service stations in Greater Cairo, with plans to launch an additional six stations in Egypt by year-end.
Adnoc Distribution commenced operations in Saudi Arabia in 2018 and now operates 64 service stations in the region’s largest economy. CEO Bader Al Lamki reassured that the company has the financial capability to fund its growth, be it through equity or debt, making funding less of a concern compared to finding the right investment opportunities that will benefit shareholders.
The company reported a 2% annual increase in net profit for H1 2023, excluding inventory movements, reaching AED 1.03 billion, driven by higher fuel volumes and efficiency initiatives. Its revenue for the same period rose by 4.9% YoY to AED 16.13 billion.
Furthermore, Adnoc Distribution is actively advancing its decarbonization efforts in alignment with Adnoc’s broader strategy to achieve net-zero emissions by 2045. As part of these efforts, the company has announced its intention to use biofuel, derived from waste cooking oil, to power its heavy vehicle fleet in the UAE, aiming to reduce its carbon footprint. This fleet, which supplies fuels and liquefied petroleum gas to corporate customers, will be fueled by B20 biofuel.
Mr. Al Lamki emphasized the company’s commitment to sustainability, revealing a sustainability roadmap targeting a 25% reduction in carbon footprint by 2030. Among other initiatives, the company plans to provide clean energy sources at its service stations and is partnering with Emerge to introduce on-site solar power across its station network. Additionally, Adnoc Distribution has partnered with Taqa to establish a mobility joint venture, E2GO, focusing on electric vehicle infrastructure in Abu Dhabi and the broader UAE. In recognition of its commitment to sustainability, the company secured a $1.5 billion sustainability-linked loan earlier this year, further reinforcing its dedication to reducing its carbon footprint.
