Adnoc Distribution Posts Robust $579 Million Net Profit in 9 Months, Showcasing Resilience in Challenging Times.

ADNOC Distribution posted record profits of $885 million (EBITDA) in the first nine months of 2025, marking a 12% jump and the company's strongest nine-month performance since going public in 2017. The UAE fuel retailer is rapidly expanding across Saudi Arabia while betting big on non-fuel retail to drive future growth.

Net profits climbed 15.6% to $579 million during the same period. The third quarter alone saw EBITDA hit $319 million, up 15.9% year-on-year, while net profits surged 21.5% to $221 million. Both figures beat analyst expectations.

The company sold a record 11.7 billion liters of fuel in the first nine months, highlighting strong demand across its network. But the real story is ADNOC Distribution's aggressive expansion beyond the UAE.

The company added 85 new service stations in the first nine months, bringing its total network to 977 stations. Most of this growth happened in Saudi Arabia, where it opened 72 new locations. This pushed its Saudi network to 172 stations - a massive 150% increase from the previous year.

Here's where it gets interesting: ADNOC Distribution is so confident about its expansion that it raised its 2025 targets. The company now plans to open 90-100 new stations by year-end, up from its earlier guidance of 60-70 stations. In Saudi Arabia alone, it expects to add 80-90 new locations.

Looking ahead, ADNOC Distribution wants to reach 1,150 stations by 2028. The company also proposed extending its dividend policy through 2030, subject to shareholder approval, with quarterly payouts starting in Q1 2026.

For investors, this signals serious confidence in long-term growth. The Gulf's energy sector has been cash-rich thanks to higher oil prices, and ADNOC Distribution is using that strength to grab market share in Saudi Arabia's retail fuel market.

The non-fuel retail business is also picking up steam. Third-quarter profits in this segment jumped 14.7% year-on-year. The company processed 39.6 million non-fuel retail transactions in the first nine months - a 10.2% increase and another company record.

Customer conversion rates tell the story well. About 26.2% of fuel customers now also shop at ADNOC's convenience stores, up 65 basis points from last year and the highest rate since 2021. This matters because non-fuel retail typically offers higher margins than fuel sales.

CEO Bader Saeed Al Lamki said the company's five-year growth strategy is working. The focus on non-fuel retail, including the launch of the upgraded "Oasis by ADNOC" brand and expansion of leased real estate units, aims to build a flexible mobility and retail platform.

For the broader market, ADNOC Distribution's performance reflects the Gulf's economic diversification efforts. While still tied to oil and gas, companies are expanding into retail and services to reduce dependence on energy prices. The Saudi expansion makes sense - the kingdom's Vision 2030 plan is driving massive infrastructure development and consumer spending.

The company's strong balance sheet and cash generation give it room to keep expanding while maintaining dividend payments. This combination of growth and returns should appeal to investors looking for exposure to the Gulf's retail sector without the full volatility of oil prices.