ADNOC Distribution CFO Ali Siddiqi On Record Results, EV Expansion And The Retail Transformation

ADNOC Distribution has closed what Chief Financial Officer Ali Siddiqi described as a “spectacular year,” posting record EBITDA of $1.17 billion and net profit growth of more than 15% year-on-year.

Speaking on the Smashi Business Show, Siddiqi attributed the breakout performance to a long-term, growth-focused strategy rather than short-term gains

At the heart of that approach, he said, is driving more customers onto forecourts and into stores, backed by the right assets, locations and operational excellence. Fuel volumes rose 4.5%, but non-fuel retail profits expanded more than three times faster — a signal of ADNOC Distribution’s gradual shift toward becoming what Siddiqi called a “mobility and convenience retailer of choice.”

That transformation is being powered by expanding income streams across convenience stores, car washes, property and food and beverage.

A fast-growing loyalty programme — now with 2.6 million members after rising 16% — provides valuable data to tailor offers, boost in-store visits and cross-sell services such as coffee and car care.

Coffee alone, Siddiqi noted, has become one of the UAE’s leading retail offerings in its category

Capital discipline underpins the expansion.

The company posted a return on capital employed of 32.7%, while new investments are generally required to clear a minimum internal rate of return of 15%. ADNOC Distribution plans to reinvest $250–300 million annually, with roughly 70% earmarked for growth projects that generate incremental cash flows within a year.

Internationally, the group continues to scan for earnings- and dividend-accretive opportunities. Egypt and Saudi Arabia remain central pillars, alongside interest in African markets.

Siddiqi highlighted capital-light models — such as dealer-owned, company-operated stations in Saudi Arabia — as a way to scale while protecting returns. Lubricants, sold in more than 52 countries under the Voyager brand, also remain a high-margin growth engine thanks to a low-capital blending and distribution model.

Electric vehicles are another key pillar

ADNOC Distribution has rolled out 402 EV chargers across the UAE after an 83% year-on-year expansion and is targeting up to 750 by 2028.

From a financial standpoint, Siddiqi said EV margins already rival — and in some cases exceed — those of traditional fuels, with profitability set to rise as utilisation increases.

Artificial intelligence is increasingly shaping operations as well

AI tools are being used to optimise store assortments, personalise loyalty offers across hundreds of millions of transactions, manage inventory and staffing levels, and even support employee development — all aimed at lifting margins and lowering costs.

Despite volatile energy markets and geopolitical uncertainty, Siddiqi stressed that balance-sheet strength remains a core defensive asset, with net debt at just 0.7 times EBITDA.

This financial resilience supports both ADNOC Distribution’s growth ambitions and its generous shareholder return policy, including proposed $700 million dividends for 2025 and a move to quarterly payouts.

Looking ahead to 2030, Siddiqi outlined a clear ambition: expand non-fuel retail, scale EV charging, grow internationally and cement ADNOC Distribution’s position as a destination of choice for both energy — hydrocarbons and electrons alike — and everyday convenience.