https://arab.news/pdaty
RIYADH: UAE’s energy retailer, Abu Dhabi National Oil Co. Distribution, is set to host an Investor Day to inform the market about its recent strategic growth plans.
ADNOC, listed on the Abu Dhabi Securities Exchange, reached $1 billion in earnings before interest, tax, depreciation, and amortization in 2023 and intends to continue its upward trajectory by projecting further EBITDA growth throughout the period 2024 to 2028.
The company also aims to elevate its involvement in international operations within Saudi Arabia and Egypt while considering inorganic possibilities with a strong balance sheet and cash flow.
“ADNOC Distribution has demonstrated a robust track record of value creation through its smart growth strategy, pursuing new opportunities in domestic as well as international markets,” Bader Saeed Al-Lamki, CEO of the firm, said
He added: “Since its market debut in late 2017, the company has delivered robust financial performance and doubled shareholder value. 2023 was a transformative year for ADNOC Distribution, with the company generating EBITDA of over $1 billion, an increase of 33 percent compared to 2018.”
ADNOC Distribution is expanding its range of low-carbon energy solutions, such as biofuels, electric vehicles, and hydrogen, to bolster the decarbonization efforts within the transportation sector. Additionally, the company is broadening its non-fuel retail offerings.
In 2023, ADNOC Distribution experienced significant growth in fuel volumes and non-fuel retail business across Gulf Corporation Council markets, achieving a notable four-year-high conversion rate of 25 percent.
As part of its updated business strategy, ADNOC Distribution will persist in investing in the core UAE market.
Furthermore, the company aims to enhance its existing network by expanding its non-fuel retail business and optimizing real estate assets to solidify its position as the preferred brand for both retail and commercial customers.
The firm also seeks to improve its operational efficiency to reach up to $50 million in additional savings by 2028, in addition to the $130 million in like-for-like cost savings achieved between 2019 and 2023.
“The company is well positioned to take advantage of evolving energy markets and enter a new phase of growth. We remain committed to a disciplined capital allocation and delivering attractive and visible shareholder returns,” Al-Lamki added.
According to a press statement by ADNOC, the firm 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.