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ADNOC Classification: Public
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Key highlights: Double-digit growth in fuel volumes, number of
non-fuel transactions and underlying EBITDA in 9M 2023
Total fuel volumes – 9M 2023
10,118 +40.5% Y-o-Y
Retail: +44.6%, mainly attributable to consolidation of TotalEnergies Marketing Egypt
million liters
Commercial: +32.0%, mainly attributable to consolidation of TotalEnergies Marketing Egypt
8,113 +12.6% Y-o-Y
Retail: +10.3% supported by higher mobility, sustained momentum in the region’s economic growth,
million liters
network expansion and higher contribution from KSA stations
sold in the
UAE and KSA Commercial: +17.3% on a strong growth in corporate business and new contracts signed in 2022 and 9M
2023
Revenue – 9M 2023
25,065 +4.8% Y-o-Y
driven by growth in fuel volumes and higher non-fuel retail segment contribution, partially offset by lower
AED million pump prices as a result of lower oil prices compared to 9M 2022
Gross profit – 9M 2023
4,311 -3.0% Y-o-Y
AED million
ADNOC Distribution benefited from significant inventory gains of AED 665 million in 9M 2022 in a rising
oil price environment, compared to inventory gains of AED 289 million in 9M 2023
2,770 Retail fuel: -2.0% Y-o-Y
AED million
higher retail fuel volumes offset by a reduction in inventory gains from AED 489 million in 9M 2022 in a
rising oil price environment to AED 257 million in 9M 2023
547 Non-fuel retail: +14.6% Y-o-Y
AED million
supported by a strong growth in non-fuel transactions, record-high level of convenience store conversion
rate in three years, improved customer offerings following revitalization of stores, marketing and
promotion campaigns, and higher Food and Beverage (F&B) sales
993 Commercial: -12.8% Y-o-Y
AED million
growth in corporate fuel volumes offset by a margin reduction and a decrease in inventory gains from
AED 176 million in 9M 2022 in a rising oil price environment to AED 31 million in 9M 2023
EBITDA – 9M 2023
2,739 -4.3% Y-o-Y
AED million
lower inventory gains in 9M 2023 vs. 9M 2022
Underlying EBITDA (EBITDA excl. inventory movements) – 9M 2023
2,450 +11.5% Y-o-Y
driven by volume growth, growing contribution from non-fuel retail business and international activities
AED million
(KSA and Egypt) as well as company-wide efficiency improvement initiatives
Net profit attributable to equity holders – 9M 2023
1,924 -17.4% Y-o-Y
AED million
due to lower EBITDA on the back of lower inventory gains in 9M 2023 vs. 9M 2022
Net profit excl. inventory movements – 9M 2023
1,636 -1.7% Y-o-Y
due to higher finance costs offset by volume growth, higher contribution from non-fuel retail business and
AED million
international activities (KSA and Egypt) and company-wide efficiency improvement initiatives
2 | P ageADNOC Classification: Public
Robust cash flow generation and balance sheet – 9M 2023
2,669 Free cash flow
AED million
ADNOC Distribution increased free cash flow by 18.5% Y-o-Y and maintained a strong financial position at
the end of September 2023 with liquidity of AED 6 billion, in the form of AED 3.2 billion in cash and cash
equivalents and AED 2.8 billion in unutilized credit facility
0.67x Net debt to EBITDA ratio
Balance sheet remained strong with a Net debt to EBITDA ratio of 0.67x as of 30 September 2023
(0.78x as of 31 December 2022)
Operational highlights – 9M 2023
28 New stations 828 Total stations network
in the UAE, KSA and Egypt 518 in UAE
67 in KSA
243 in Egypt*
355 Convenience stores network in
the UAE
133 Fuel transactions in UAE 32.8 Non-fuel transactions in the
+0.2% Y-o-Y UAE
million million
+13.9% Y-o-Y
41 EV superfast charging points 24.4% Convenience store conversion
installed in UAE stations rate in the UAE
+350 bps
Compared to 21.0% in 9M 2022
* Acquisition of 50% of TotalEnergies Marketing Egypt completed in February 2023
3 | P ageADNOC Classification: Public
Growth momentum accelerates in Q3 2023 supporting strong
underlying profitability and cash generation in 9M 2023
In Q3 2023, ADNOC Distribution demonstrated a 28% year-on-year increase in EBITDA to AED1,111 million
and a 9% year-on-year increase in net profit to AED835 million, recording one of the strongest quarterly results
for the Company since IPO. This financial performance was supported by a double-digit growth in fuel volumes
and number of non-fuel transactions, growing contribution from international operations and efficiency
improvement initiatives.
Growth momentum accelerated in Q3: underlying EBITDA growth year-on-year was 8% in Q1 2023, 10% in Q2
2023 and 16% in Q3 2023. As a result, 9M 2023 underlying EBITDA (excluding inventory movements) grew by
11.5% year-on-year to AED 2,450 million, and net profit excluding inventory movements remained nearly
unchanged year-on-year to AED 1,636 million despite the higher finance costs.
Strong free cashflow generation of AED 2,669 million in 9M 2023 alongside solid balance sheet supports the
Company’s future growth prospects and shareholder distributions, including the dividend policy target to pay
minimum AED 2.57 billion in 2023 dividend(*), offering an industry-leading 5.9% dividend yield.
(*) subject to the discretion of the Board and shareholders’ approval
Fuel business (retail and commercial)
ADNOC Distribution’s UAE and KSA fuel volumes increased in 9M 2023 by 12.6% year-on-year, as the sustained
momentum in the region’s economic growth and mobility continued to provide strong support to retail and
corporate fuel consumption. ADNOC Distribution added new stations in Dubai and Saudi Arabia, resulting in
incremental retail fuel volumes in 9M 2023 which increased by 10.3% compared to 9M 2022. Including growing
contribution from operations in Egypt, ADNOC Distribution recorded a 40.5% year-on-year increase in total fuel
volumes.
Network expansion: ADNOC Distribution continued to expand its retail fuel network in 9M 2023 by adding 28
new stations and achieving a full-year 2023 target to open 25-35 new stations across its network.
o Domestically: ADNOC Distribution added 20 new stations in the UAE to reach 518 stations (9M 2022: 481),
an increase of 8% year-on-year.
In Dubai, the Company opened 4 new stations in 9M 2023. As a result, ADNOC Distribution’s service station
network in the emirate expanded by 16% to 43 stations compared to 37 at the end of 9M 2022.
o Internationally: ADNOC Distribution continued to execute on its plans in the Kingdom of Saudi Arabia, with
67 stations at the end of 9M 2023, while more than 80% of the network has been rebranded, providing
support to operating and financial performance in KSA.
In 9M 2023, the Company’s assets in Egypt added 4 new service stations to the portfolio and operated 243
service stations. In addition, the Egypt portfolio comprised aviation fuel, lubricant and wholesale fuel
operations as well as 100+ convenience stores, 250+ lube changing points and 16 car wash locations.
Commercial business: In 9M 2023, commercial segment fuel volumes in the UAE increased by 17.3%
compared to 9M 2022 driven by an increase of 19.2% year-on-year in corporate business volumes. This was a
result of execution of new contracts signed last year and during 9M 2023, as the Company has been proactively
focusing on gaining market share in Dubai and Northern Emirates.
The total number of export network countries in ADNOC Distribution’s VOYAGER lubricants portfolio rose to 34
markets at the end of 9M 2023 compared to 22 markets at the end of the same period last year. The Company
is also exploring opportunities to penetrate new and growing lubricant markets through collaboration with leading
partners worldwide.
4 | P ageADNOC Classification: Public
Additionally, the Company has recently launched ADNOC Voyager brand signature range of premium and OEM-
approved automotive vehicle lubricants in Egypt through TotalEnergies Marketing Egypt. The products will be
available for the Egyptian consumers to purchase at ADNOC branded service stations.
Non-fuel business - UAE
During 9M 2023, non-fuel business recorded a 14% year-on-year increase in transactions, supported by a series
of marketing campaigns and customer-centric initiatives in line with the Company’s non-fuel retail strategy. The
growth was underpinned by a record-high convenience store conversion rate in three years of 24.4%, which
increased by 350 bps compared to 9M 2022.
The Company continued to execute on its convenience store revitalization program, with additional 15 stores
refurbished during 9M 2023. Since the launch of the program, the Company modernized c.210 ADNOC Oasis
stores over 2020-9M 2023, offering fresh food, barista-brewed coffee and a wider menu selection. The
modernisation programme provided support to key convenience stores operating metrics, including number of
non-fuel transactions (+13.9% year-on-year in 9M 2023), growing conversion rate (24.4% in 9M 2023 vs. 21.0%
in 9M 2022) and basket size (+2.4% year-on-year in 9M 2023).
ADNOC Distribution continued to enhance customer experience through various initiatives, such as offering a
modern shopping environment, improvement in category management, a better assortment of products,
including introduction of fresh food and premium coffee products, and digital channels to order and transact.
The Company expanded its vehicle inspection services in the UAE to 33 centres following an addition of one
new centre between end of 9M 2022 and end of 9M 2023. The number of vehicles inspected (fresh tests) in the
Company’s vehicle inspection centres increased by 44% in 9M 2023 year-on-year, driven by an increase of the
number of vehicle inspection centres, particularly in the Northern Emirates, along with the introduction of new
services, and supported by marketing and promotions.
ADNOC Rewards loyalty program and customer focus
ADNOC Rewards loyalty program continued to add members throughout 9M 2023, with more than 1.8 million
enrolled (+14% vs. 9M 2022) and over 100 partner offers providing discounts and deals through the ADNOC
Distribution app.
The program received a boost in 9M 2023 with an improvement in generosity of 3X. ADNOC Distribution
continues to enhance its customer value proposition and has recently launched a new system of ADNOC
Rewards tiers: SILVER, GOLD, and PLATINUM – each delivering an expanded suite of exciting benefits and
offers to customers.
As part of the loyalty programme, the Company offers its customers promotions in-store, and a range of initiatives
that include linking ADNOC Rewards across service station purchases and allowing customers to earn and
redeem points against valuable offerings – in fuel, lube change services, convenience store, and car washes.
All this contributed to growth in the non-fuel business.
The Company has also become the region’s first fuel distributor to introduce the innovative ADNOC ‘Fill & Go’
technology at its service stations. The AI-backed solution utilizes the latest innovations in computer vision
technologies, comprising machine learning models allowing computers to recognize vehicles, and responds by
offering a hyper-personalized fuelling experience, reaffirming ADNOC Distribution’s leadership position in the
UAE’s fuel and convenience retail sector.
ADNOC Distribution is committed to putting the customer at the heart of what it does to help accelerate the
mobility revolution and redefine the experience at service stations; thereby, cementing the Company’s position
as a destination of choice for its customers.
5 | P ageADNOC Classification: Public
OPEX
During 9M 2023, ADNOC Distribution accelerated execution of efficiency improvement initiatives across all its
operations and businesses including optimizing logistics costs, renegotiations of supply contracts with vendors,
etc. As a result, the Company’s cash OPEX remained nearly unchanged compared to 9M 2022.
This took place despite the continued expansion of the Company’s operations and associated costs. Number of
stations in the UAE and KSA increased by 7% at the end of 9M 2023 compared to the same period of last year.
In addition, ADNOC Distribution consolidated operations of TotalEnergies Marketing Egypt from 1 February
2023.
The Company continues to implement management initiatives to increase operational efficiency and achieve
prudent cost controls.
Change in financial presentation
To ensure robust reporting and fair representation of operating expenses, during Q3 2022 ADNOC Distribution
reclassified certain OPEX items and changed the accounting estimate of useful life of assets. The changes were
effective from 1st January 2022. However, the full retrospective adjustments for 9M 2022 (c. AED 162 million
OPEX reclassification to Cost of Goods Sold and AED 125 million reduction in depreciation charge) impacted
the financials of Q3 2022. These changes have affected the comparisons between Q3 2022 and Q3 2023.
The changes included:
1. Reclassification of certain OPEX items into Cost of Goods Sold (COGS):
- Fuel transport costs (the cost to transfer fuels from depots to retail stations)
- Aviation related OPEX (costs incurred by ADNOC Distribution and recovered at a margin from ADNOC
as per the Aviation Services Agreement which the Company entered with ADNOC at the time of the IPO)
2. Change in accounting estimate of useful life of assets:
- As part of regular review of useful lives of assets mandated by International Financial Reporting Standards
(IFRS), lives of certain assets were extended in line with IAS 16. More details can be found in note 3 of
ADNOC Distribution’s financial statements for the period ended 30 September 2022
Efficient capital allocation
ADNOC Distribution has demonstrated a proven track-record of value creation since IPO, by pursuing new
opportunities in domestic and international markets and allocating cash towards growth. The Company expects
to invest AED 0.9-1.1 billion in 2023 to deliver on its growth plans after investing AED 620 million in 9M 2023
(excluding M&A).
Through efficient capital allocation, ADNOC Distribution has consistently achieved healthy rates of return,
including Return on Capital Employed (ROCE) of 26.6% in 9M 2023 (30.9% in 9M 2022) and Return on Equity
(ROE) of 83.8% in 9M 2023 (95.9% in 9M 2022). The year-on-year reduction in the rates of return took place
due to lower inventory gains in 9M 2023 vs. 9M 2022.
In 9M 2023, ADNOC Distribution generated robust free cash flow of AED 2,669 million, an increase of 18.5%
year-on-year. At the end of September 2023, the Company maintained a strong financial position with liquidity
of AED 6 billion in the form of AED 3.2 billion in cash and cash equivalents and AED 2.8 billion in unutilized
credit facility. The balance sheet remained strong with a net debt to EBITDA ratio of 0.67x as of 30 September
2023 (0.78x as of 31 December 2022).
6 | P ageADNOC Classification: Public
Eng. Bader Al Lamki – Chief Executive Officer:
“Our impressive third-quarter results are a testament to the continuous growth of our business as we witness
strong momentum across both our fuel and non-fuel retail segments. These results mark one of the strongest
quarterly performances since our IPO.
“They are driven by our commitment to creating value and attractive shareholder returns by implementing our
smart growth strategy. This strategy includes the expansion of our domestic and international network,
operational efficiency initiatives, investments in growth, and the adoption of advanced technologies across our
operations to deliver a superior customer experience.”
7 | P ageADNOC Classification: Public
Management focus: Deliver incremental growth and futureproof
the business
After posting a 7.9% increase in GDP in 2022, the UAE H1 2023 economic growth of 3.7% (including non-oil
GDP growth of 5.9%) indicates positive momentum for this year and beyond. Furthermore, in H1 2023
international visitor numbers to Dubai reached 8.55 million, up 20% year-on-year and 2.3% above the level of
2019. The recovery is also supported by hotel indicators, with occupancy and revenue per available room all
above the pre-COVID levels.
According to IMF, a near-term outlook is positive for the UAE but subject to elevated global risks and uncertainty.
The agency forecasts that the country’s real GDP will grow by 3.4% in 2023 and by 4.0% in 2024 which is the
highest rate among the GCC economies. Non-hydrocarbon GDP growth is expected to exceed 4% this year and
to remain at a similar pace in 2024, driven by tourism, construction, and real estate related developments.
The growth in business activity has translated into higher traffic and improved consumer confidence across the
country resulting in higher fuel volumes and number of non-fuel transactions for ADNOC Distribution in 9M 2023.
Leveraging on its leadership position in the UAE, customer focus and best-in-class mobility and lifestyle
experience, the Company has grown its fuel volumes at a faster rate than the country’s GDP growth.
ADNOC Distribution expects solid outlook for the full year 2023 and beyond, underpinned by volume growth
momentum and OPEX savings, while also focusing on network expansion and higher contribution of non-fuel
retail and international operations. By executing management efficiency improvement initiatives across all
business units, implementing prudent cost controls and optimizing costs, in 9M 2023 the Company achieved
like-for-like OPEX savings of AED 73 million, a significant progress towards its guidance for OPEX savings of
around AED 92 million in the full year 2023.
In its ongoing quest to futureproof the business, ADNOC Distribution is developing EV charging infrastructure
across its network in the UAE, continues to explore further growth opportunities in mobility and lifestyle, as well
as new revenue streams created through energy transition.
Fuel business
New stations: after opening 28 new stations during 9M 2023, the Company expects delivery momentum to
continue in Q4 2023, in line with the full-year 2023 target of adding 25-35 new stations across its network.
Egypt: ADNOC Distribution’s acquisition of a 50% stake in TotalEnergies Marketing Egypt reaffirms the
Company’s commitment to expanding business in attractive international growth markets. Egypt’s retail fuel,
lubricants and aviation markets are highly attractive with a potential for future growth. The first three ADNOC
branded service stations were launched in Cairo during Q3 2023 and further openings are targeted during the
final quarter of the year.
Renewal of the Refined Products Supply Agreement: at the beginning of 2023, ADNOC Distribution
successfully renewed its supply agreement with ADNOC for a new five-year term, reaffirming the Company’s
strong value proposition driven by predictable margins and highly cash generative core business. The renewal
also demonstrated strong and ongoing support from the majority shareholder, ADNOC.
8 | P ageADNOC Classification: Public
Non-fuel business
ADNOC Distribution invests in offering customers a modern and engaging retail experience. In line with the
ambitious non-fuel strategy, the focus remains on offering a modern environment and a better assortment of
products to customers, including fresh food and premium coffee, bundle offers and digital channels to order and
transact.
The well-progressing convenience store revitalization program has ensured that the Company is well-positioned
to capitalize on benefits of its customer-centric initiatives and generates consistent growth in its convenience
stores business.
ADNOC Distribution focuses on extracting additional growth and value by sweating the assets, providing
enhanced customer experience, shifting capital allocation towards mobility and lifestyle, and reinforcing retail
offerings to transform ADD stations into a “Destination of choice”.
Operating and investment efficiency
ADNOC Distribution aims to become one of the leading cost-efficient fuel retailers and remains on track to take
structural costs out, make its operations leaner and more efficient. The key drivers for further OPEX savings
include staff optimization, with the more efficient deployment of staffing levels for stations and convenience
stores, energy efficiency through smart technology, outsourcing of logistics, centralization of key functions, etc.
Sustainability & futureproofing of business
I/ Rollout of Electric Vehicles (EV) charging points
ADNOC Distribution continues to expand its network of EV charging stations, and has agreed with TAQA, one
of the largest listed integrated utility companies in the EMEA region, to work together to establish a new mobility
joint-venture.
In Q3 2023, the Company continued the rollout of EV chargers across its service stations with over 40 fast
charging points installed across strategic location in the UAE to address current EV customer demand and offer
enhanced customer value proposition. ADNOC Distribution expects to have c.50 fast charging points across its
network by the end of 2023.
Through the development of modern mobility solutions, ADNOC Distribution intends to become a destination of
choice for charging and convenience for the UAE customers.
II/ Decarbonization roadmap
ADNOC Distribution plans to expand its sustainability-driven efforts to futureproof its business. In January 2023,
the Company unveiled its Decarbonization roadmap, committing to a reduction of carbon intensity of its
operations by 25% by 2030. The Decarbonization roadmap covers Scope 1 emissions, which come directly from
the Company’s operations, and Scope 2 carbon emissions, which come from the energy ADNOC Distribution
uses to run its operations.
The Company aims to cut emissions through a set of identified initiatives that will be implemented in 2023 and
beyond, such as installing solar panels at service stations, use of biofuels to power its fleet of vehicles and other
energy optimization initiatives. ADNOC Distribution also aims to utilize ‘green concrete’, that is eco-friendly and
has a smaller carbon footprint than traditional concrete, in the construction of new service stations.
ADNOC Distribution started installation of solar panels across its service stations network in Dubai, as part of
the Company’s phased approach to UAE-wide solar rollout to provide the power needed for daily operations.
Additionally, 100% of the Company’s UAE heavy fleet is now using biofuel.
9 | P ageADNOC Classification: Public
III/ Sustainability Linked Loan
ADNOC Distribution became the first UAE fuel and convenience retailer to tap into sustainable financing, by
converting in January 2023 an existing AED 5.5 billion ($ 1.5 billion) term loan into a Sustainability Linked Loan.
The Company committed to a penalty/incentive model which ties the loan to the sustainability-linked indicators,
including GHG emissions intensity and share of renewable energy contribution. By arranging the Sustainability
Linked Loan, ADNOC Distribution has aligned its funding strategy with the sustainability roadmap.
Dividend policy
The Company’s continued growth and robust cash generation have enabled an attractive dividend policy for the
shareholders. ADNOC Distribution is committed to delivering sustainable, profitable growth and attractive
shareholder returns.
In March 2023, ADNOC Distribution shareholders approved a new dividend policy which sets out a minimum
dividend of AED 2.57 billion (20.57 fils per share) for 2023 (compared to a minimum 75% of distributable profits
as per the previous policy), yielding 5.9% (at share price of 3.46 as of 9 November 2023) and offering higher
payback visibility for the shareholders. Beyond 2023, the dividend policy sets out a minimum 75% of distributable
profits per year, subject to the discretion of the board and shareholders’ approval.
ADNOC Distribution paid AED 1.285 billion dividends for the first six months of 2023 (10.285 fils per share) in
October 2023, which is expected to be followed by a dividend of a minimum AED 1.285 billion for the second
six-months period of 2023 in April 2024, subject to the discretion of the board and shareholders’ approval.
10 | P ageADNOC Classification: Public
Financial summary
AED million Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 23 9M 22 YoY %
Revenue 8,935 8,132 9.9% 8,551 4.5% 25,065 23,924 4.8%
Gross profit 1,659 1,388 19.5% 1,277 29.9%(3) 4,311 4,443 -3.0%
Gross margin, % 18.6% 17.1% 14.9% 17.2% 18.6%
EBITDA 1,111 851 30.5% 868 28.0% 2,739 2,862 -4.3%
EBITDA margin, % 12.4% 10.5% 10.2% 10.9% 12.0%
Underlying EBITDA (1) (2) 884 778 13.6% 759 16.4% 2,450 2,197 11.5%
Operating profit 942 666 41.6% 817 15.4%(4) 2,234 2,474 -9.7%
Net profit attributable to
835 551 51.5% 767 9.0%(4) 1,924 2,329 -17.4%
equity holders
Net margin, % 9.4% 6.8% 9.0% 7.7% 9.7%
Earnings per share
0.07 0.04 51.5% 0.06 9.0%(4) 0.15 0.19 -17.4%
(AED/share)
Net profit excluding
608 478 27.2% 658 -7.6%(4) 1,636 1,664 -1.7%
inventory movements
Net cash generated from
1,699 370 359.2% 570 198.3% 3,326 2,986 11.4%
operating activities
Capital expenditures 236 227 4.0% 329 -28.2% 620 741 -16.4%
Free cash flow (5) 1,447 174 731.3% 294 392.4% 2,669 2,252 18.5%
Total equity 2,889 3,324 -13.1% 3,024 -4.5% 2,889 3,024 -4.5%
Net debt (6) 2,267 3,572 -36.5% 2,501 -9.4% 2,267 2,501 -9.4%
Capital employed 10,280 10,712 -4.0% 9,985 3.0% 10,280 9,985 3.0%
Return on capital employed
26.6% 30.9%
(ROCE), %
Return on equity (ROE), % 83.8% 95.9%
Net debt to EBITDA ratio (6) 0.67 1.13 0.68 0.67 0.67 0.68
Leverage ratio, % 44.0% 51.8% 45.3% 44.0% 44.0% 45.3%
(1) Underlying EBITDA is defined as EBITDA excluding inventory movements
(2) Underlying EBITDA for Q3 2022 and 9M 2022 restated as per definition in (1)
(3) Change is partially due to reclassification of certain OPEX items to Costs of Goods Sold (COGS) in Q3 2022 (refer to page 6 for details)
(4) Change is partially due to a change in accounting estimate of useful life of assets (refer to page 6 for details)
(5) Free cash flow is defined as net cash generated from operating activities less payments for purchase of property, plant & equipment,
and advances to contractors
(6) Cash and bank balances used for net debt calculation include term deposits with banks
Note: See the Glossary for the calculation of certain metrics referred to above
11 | P ageADNOC Classification: Public
Operating and financial review
Fuel volumes
In Q3 2023, total fuel volumes sold reached 3,578 9M 2023 total fuel volumes sold reached 10,118
million liters, increasing by 54.1% year-on-year, million liters, an increase of 40.5% year-on-year
mainly attributable to consolidation of TotalEnergies mainly attributable to consolidation of TotalEnergies
Marketing Egypt. Marketing Egypt.
In GCC markets (UAE and KSA), Q3 2023 total fuel In GCC markets (UAE and KSA), 9M 2023 total fuel
volumes amounted to 2,803 million liters, up by volumes amounted to 8,113 million liters, up by
20.7% year-on-year supported by ongoing growth in 12.6% on the back sustained momentum in the
region’s economic activities and mobility as well as region’s economic growth, higher mobility and
network expansion. Q3 2023 UAE and KSA addition of new service stations.
volumes increased by 5.5% compared to Q2 2023.
UAE and KSA retail fuel volumes increased by
In Q3 2023, GCC retail fuel volumes increased by 10.3% in 9M 2023, while commercial fuel volumes
14.5% year-on-year, while commercial fuel volumes increased by 17.3% year-on-year driven by a 19.2%
were up by 34.1%. increase in corporate volumes and partially offset by
a 6.2% decline in aviation volumes.
Fuel volumes by segment
Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 23 9M 22 YoY %
(million liters)
Retail (B2C) 2,461 2,389 3.0% 1,583 55.5% 6,999 4,839 44.6%
Of which GCC 1,812 1,781 1.7% 1,583 14.5% 5,340 4,839 10.3%
Of which Egypt 649 608 6.8% 1,659
Commercial (B2B) 1,117 1,007 10.9% 739 51.2% 3,119 2,364 32.0%
Of which GCC 991 875 13.2% 739 34.1% 2,773 2,364 17.3%
Of which Egypt 126 131 -3.8% 346
Of which Corporate 1,017 899 13.1% 702 44.8% 2,841 2,193 29.6%
Of which GCC 936 814 15.1% 702 33.4% 2,613 2,193 19.2%
Of which Egypt 80 85 -5.6% 228
Of which Aviation 100 108 -7.0% 37 172.4% 278 170 62.8%
Of which GCC 54 62 -11.9% 37 47.5% 160 170 -6.2%
Of which Egypt 46 46 -0.4% 118
Total 3,578 3,396 5.4% 2,322 54.1% 10,118 7,203 40.5%
Fuel volumes by product
Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 23 9M 22 YoY %
(million liters)
Gasoline (1) 1,940 1,904 1.9% 1,451 33.7% 5,617 4,453 26.2%
Diesel 1,342 1,191 12.7% 668 100.9% 3,613 2,052 76.1%
Aviation products 100 108 -7.0% 37 172.4% 278 170 62.8%
Others (2) 196 193 1.7% 166 18.3% 609 528 15.5%
Total 3,578 3,396 5.4% 2,322 54.1% 10,118 7,203 40.5%
Of which GCC 2,803 2,657 5.5% 2,322 20.7% 8,113 7,203 12.6%
Of which Egypt 775 739 4.9% 2,004
(1) Includes grade 91, 95 and 98 unleaded gasoline
(2) Includes CNG, LPG, kerosene, lubricants, and base oil
12 | P ageADNOC Classification: Public
Financial results
In Q3 2023, revenue increased by 4.5% year-on- non-fuel business as well as
year to AED 8,935 million. The growth was driven consolidation of TotalEnergies Marketing Egypt.
by higher fuel volumes, growing contribution of non-
fuel retail business and consolidation of In 9M 2023, gross profit decreased by 3.0% year-
TotalEnergies Marketing Egypt, partially offset by on-year to AED 4,311 million. In 9M 2022, in a rising
lower selling prices as a result of lower crude oil oil price environment inventory gains amounted to
prices. AED 665 million (AED 489 million in fuel retail and
AED 176 million in commercial business). In 9M
Q3 2023 gross profit increased by 29.9% year-on- 2023, the Company recorded lower inventory gains
year to AED 1,659 million, supported by higher fuel of AED 257 million in the fuel retail business and
volumes and growth in non-fuel retail business. In AED 31 million in the commercial business – total
addition, in Q3 2023 in a rising oil price environment inventory gains of AED 289 million. In 9M 2023,
inventory gains amounted to AED 228 million (AED gross profit was down year-on-year despite higher
177 million in fuel retail and AED 51 million in volumes and due to pressure on commercial
commercial business) compared to AED 109 million margins in a declining price environment.
in Q3 2022 (AED 88 million in fuel retail and AED 21
million in commercial business). The increase in Q3 9M 2023 reported EBITDA decreased by 4.3% year-
2023 gross profit year-on-year is also partially due on-year to AED 2,739 million as a result of lower
to reclassification of certain OPEX items to Costs of inventory gains in 9M 2023 compared to 9M 2022.
Goods Sold (COGS) in Q3 2022.
9M 2023 underlying EBITDA (EBITDA excluding
Q3 2023 reported EBITDA increased by 28.0% inventory movements) increased by 11.5% year-on-
year-on-year to AED 1,111 million supported by the year to AED 2,450 million, mainly driven by higher
higher fuel volumes, as well as higher inventory fuel volumes as well as growing contribution from
gains in Q3 2023 compared to Q3 2022. non-fuel retail and international activities. In
addition, the management implemented efficiency
Q3 2023 underlying EBITDA (EBITDA excluding improvement initiatives which resulted in a reduction
inventory movements) increased by 16.4% year-on- of OPEX.
year to AED 884 million driven by the higher
volumes, growing contribution from non-fuel and 9M 2023 net profit attributable to shareholders
international activities as a well as management decreased by 17.4% year-on-year to AED 1,924
initiatives to reduce costs. million as a result of lower inventory gains year-on-
year. Net profit excluding inventory movements
Q3 2023 net profit attributable to shareholders remained nearly unchanged year-on-year despite
increased by 9.0% year-on-year to AED 835 million higher finance costs.
due to an increase in EBITDA and despite higher
finance costs. In Q3 2022 the Company changed
accounting estimates related to useful life of assets.
This change resulted in a reduction in depreciation
charge in 9M 2022 with a full impact reflected in Q3
2022. Adjusted for the effect of the accounting
change, Q3 2023 net profit attributable to
shareholders increased by 27% year-on-year.
Net profit excluding inventory movements
decreased by 7.6% year-on-year to AED 608
million. Adjusted for the effect of the above-
mentioned accounting change, Q3 2023 net profit
excluding inventory movements increased by 11%
year-on-year despite higher finance costs.
9M 2023 revenue increased by 4.8% year-on-year
to AED 25,065 million despite lower selling prices as
a result of lower crude oil prices. The increase in
revenue was driven by growth in fuel volumes and
13 | P ageADNOC Classification: Public
Revenue by segment
Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 23 9M 22 YoY %
(AED million)
Retail (B2C) 6,026 5,648 6.7% 5,843 3.1% 16,934 16,162 4.8%
Of which fuel retail 5,672 5,309 6.8% 5,560 2.0% 15,917 15,324 3.9%
Of which non-fuel retail (1) 354 340 4.2% 282 25.4% 1,017 838 21.4%
Commercial (B2B) 2,909 2,483 17.1% 2,708 7.4% 8,131 7,763 4.7%
Of which corporate 2,512 2,100 19.6% 2,476 1.5% 7,043 6,972 1.0%
Of which aviation 397 383 3.6% 232 70.9% 1,088 791 37.5%
Total 8,935 8,132 9.9% 8,551 4.5% 25,065 23,924 4.8%
Gross profit by segment
Q3 23 Q2 23 QoQ % Q3 22 YoY %(3) 9M 23 9M 22 YoY %
(AED million)
Retail (B2C) 1,263 1,078 17.2% 1,015 24.4% 3,317 3,304 0.4%
Of which fuel retail 1,069 897 19.1% 852 25.4% 2,770 2,827 -2.0%
Of which non-fuel retail (1) 195 180 7.8% 163 19.2% 547 478 14.6%
Commercial (B2B) 396 310 27.8% 262 51.3% 993 1,138 -12.8%
Of which corporate 316 240 31.5% 273 15.8% 788 925 -14.8%
Of which aviation 80 70 14.8% -11 NM 205 213 -3.7%
Total 1,659 1,388 19.5% 1,277 29.9% 4,311 4,443 -3.0%
EBITDA by segment
Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 23 9M 22 YoY %
(AED million)
Retail (B2C) 786 607 29.5% 623 26.2% 1,938 1,998 -3.0%
Commercial (B2B) 331 249 32.7% 244 35.4% 802 862 -7.0%
Of which corporate 250 184 35.5% 219 14.0% 602 748 -19.5%
Of which aviation 81 65 24.7% 25 220.7% 200 114 74.9%
Unallocated(2) -6 -5 NM 1 NM -1 2 NM
Total 1,111 851 30.5% 868 28.0% 2,739 2,862 -4.3%
(1) Non-fuel retail includes convenience stores, car wash, lube change, property management and vehicle inspection
(2) Unallocated includes other operating income/expenses not allocated to specific segment
(3) Change is partially due to reclassification of certain OPEX items to Costs of Goods Sold (COGS) in Q3 2022 (refer to page 6 for
details)
NM: Not meaningful
Distribution and administrative expenses
In Q3 2023, distribution and administrative Adjusted for the effect of the accounting changes, in
expenses (OPEX) were AED 729 million, an Q3 2023 OPEX decreased by 5.4% year-on-year.
increase of 50.8% compared to Q3 2022. This took place as a result of the Company’s
operational efficiency improvements across all
During Q3 2022, the Company reclassified certain business units and despite an 7% increase in the
OPEX items and changed the accounting estimate Company’s network in the UAE and KSA and
of useful life of assets. The changes were effective associated costs as well as consolidation of
from 1 January 2022. However, the full retrospective TotalEnergies Marketing Egypt.
adjustments for 9M 2022 (AED 162 million OPEX
reclassification to Cost of Goods Sold and AED 125
million reduction in depreciation charge) impacted
the financials of Q3 2022.
14 | P ageADNOC Classification: Public
Excluding depreciation, Q3 2023 cash OPEX In 9M 2023, distribution and administrative
increased by 29.7% year-on-year to AED 560 expenses (OPEX) were AED 2,135 million, an
million. Adjusted for the effect of the above- increase of 6.8% compared to 9M 2022. Excluding
mentioned accounting changes, in Q3 2023 cash depreciation, cash OPEX remained nearly
OPEX decreased by 5.7% year-on-year. unchanged in 9M 2023 year-on-year despite the
expansion of the Company’s fuel retail network and
consolidation of TotalEnergies Marketing Egypt.
AED million Q3 23 Q2 23 QoQ % Q3 22 YoY %(2)(3) 9M 23 9M 22 YoY %
Staff costs 341 371 -8.1% 302 13.1% 1,074 1,100 -2.4%
Depreciation 169 186 -9.1% 51 228.0% 505 388 29.9%
Repairs, maintenance, and
53 47 11.7% 41 30.2% 144 125 15.6%
consumables
Distribution and marketing
21 8 160.9% -7 NM 34 46 -25.4%
expenses
Utilities 71 56 26.4% 33 117.0% 160 141 14.1%
Insurance 3 5 -37.4% 6 -48.8% 12 14 -10.7%
Others (1) 71 64 10.6% 59 21.1% 205 186 10.7%
Total 729 737 -1.1% 483 50.8% 2,135 1,999 6.8%
(1) Other costs include lease cost, bank charges, subscriptions, legal fees, consultancies, etc.
(2) Change is partially due to a change in accounting estimate of useful life of assets (refer to page 6 for details)
(3) Change is partially due to reclassification of certain OPEX items to Costs of Goods Sold (COGS) (refer to page 6 for details)
NM: Not meaningful
Capital expenditures
In 9M 2023, total CAPEX decreased by 16.4%
The Company’s capital expenditures (CAPEX)
compared to 9M 2022 to AED 620 million, driven by
primarily consist of (i) investments related to the
lower CAPEX on service stations. 70% of the
development and construction of new service
CAPEX comprised development and construction of
stations and fuel terminal projects and capitalized
new service stations.
maintenance costs related to properties, (ii) the
purchase of machinery and equipment, and (iii)
The table below presents the breakdown of capital
other capital expenditures related to properties,
expenditures for the reviewed period.
including structural upgrades, technology
infrastructure upgrades and other improvements.
AED million Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 23 9M 22 YoY %
Service stations projects 115 148 -22.5% 242 -52.5% 385 523 -26.5%
Industrial and other projects 72 29 152.9% 25 192.5% 109 87 25.8%
Machinery and equipment 30 28 9.6% 26 15.5% 71 50 42.1%
Distribution fleet -1 1 NM 6 NM 0 10 NM
Technology infrastructure 19 16 17.1% 25 -23.3% 47 58 -19.0%
Office furniture and
1 6 -86.5% 5 -85.8% 9 14 -40.0%
equipment
Total 236 227 4.0% 329 -28.2% 620 741 -16.4%
NM: Not meaningful
15 | P ageADNOC Classification: Public
Business segments operating review
Retail segment – B2C (fuel and non-fuel)
Volumes
In Q3 2023, retail fuel volumes increased by 55.5% 9M 2023 retail fuel volumes increased by 44.6%
year-on-year, mainly attributable to consolidation of year-on-year, mainly attributable to consolidation of
TotalEnergies Marketing Egypt. TotalEnergies Marketing Egypt.
In GCC markets (UAE and KSA), the volumes In GCC markets (UAE and KSA), they increased by
increased by 14.5% year-on-year driven by the 10.3% year-on-year as a result of economic growth
region’s ongoing economic growth, higher mobility and higher mobility in the region. In addition, the
and addition of new service stations. The retail fuel Company continued to expand in Dubai by adding
volumes increased in Q3 2023 by 1.7% compared new stations, resulting in incremental fuel volumes
to Q2 2023. In Egypt, retail fuel volumes expanded in 9M 2023 compared to the same period of 2022.
in Q3 2023 by 6.8% compared to Q2 2023.
Retail segment volumes
Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 23 9M 22 YoY %
(million liters)
Gasoline 1,871 1,829 2.3% 1,385 35.1% 5,401 4,257 26.9%
Diesel 536 503 6.5% 147 263.4% 1,428 435 227.8%
Other (1) 55 57 -4.2% 50 8.4% 170 147 15.7%
Total 2,461 2,389 3.0% 1,583 55.5% 6,999 4,839 44.6%
Of which GCC 1,812 1,781 1.7% 1,583 14.5% 5,340 4,839 10.3%
Of which Egypt 649 608 6.8% 1,659
(1) Includes CNG, LPG, kerosene, and lubricants
Financial results
In Q3 2023, retail segment revenue increased by higher fuel volumes year-on-year and a positive
3.1% compared to Q3 2022 despite lower pump impact of inventory gains in Q3 2023.
prices and was supported by higher volumes, strong
growth in non-fuel retail revenue and consolidation Retail segment underlying EBITDA (EBITDA
of TotalEnergies Marketing Egypt. excluding inventory movements) increased in Q3
2023 by 13.9% year-on-year, supported by higher
Q3 2023 retail segment gross profit increased by volumes and growing non-fuel business
24.4% compared to Q3 2022, as a result of higher contribution.
fuel volumes and growing contribution from non-fuel
and international activities. In addition, the 9M 2023 retail segment revenue increased by 4.8%
Company recorded an increase in inventory gains compared to 9M 2022 despite lower pump prices,
from AED 88 million in Q3 2022 to AED 177 million supported by the fuel volumes growth and increase
in Q3 2023. in non-fuel revenues.
Fuel retail segment gross profit increased by 25.4%
year-on-year principally due the higher volumes as
well as a positive impact of inventory gains. Non-fuel
retail gross profit increased by 19.2% in Q3 2023
compared to Q3 2022 driven by growth in non-fuel
transactions of 14.1% year-on-year and improved
customer offerings.
Q3 2023 retail segment EBITDA increased by
26.2% compared to Q3 2022, mainly due to the
16 | P ageADNOC Classification: Public
9M 2023 retail segment gross profit was unchanged In 9M 2023, retail segment EBITDA decreased by
year-on-year. Fuel retail segment gross profit 3.0% compared to 9M 2022, mainly due to lower
reduced by 2.0% year-on-year as in 9M 2022 impact of inventory gains, partially offset by higher
inventory gains amounted to AED 489 million in a retail fuel volumes and growth in non-fuel business.
rising oil price environment while in 9M 2023 they
were AED 257 million. The effect of lower inventory Retail segment underlying EBITDA (EBITDA
gains was partially offset by the higher retail fuel excluding inventory movements) increased in 9M
volumes. Non-fuel retail segment gross profit 2023 by 11.4% year-on-year as result of higher
increased by 14.6% year-on-year driven by growth volumes, growing contribution of non-fuel and
in non-fuel transactions of 13.9% year-on-year and international activities as well as management
improved customer offerings. efficiency improvement initiatives.
Retail segment
Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 23 9M 22 YoY %
(AED million)
Revenue 6,026 5,648 6.7% 5,843 3.1% 16,934 16,162 4.8%
Of which fuel retail 5,672 5,309 6.8% 5,560 2.0% 15,917 15,324 3.9%
Of which non-fuel retail (1) 354 340 4.2% 282 25.4% 1,017 838 21.4%
Gross profit 1,263 1,078 17.2% 1,015 24.4% 3,317 3,304 0.4%
Of which fuel retail 1,069 897 19.1% 852 25.4% 2,770 2,827 -2.0%
Of which non-fuel retail (1) 195 180 7.8% 163 19.2% 547 478 14.6%
EBITDA 786 607 29.5% 623 26.2% 1,938 1,998 -3.0%
Operating profit 634 442 43.6% 578 9.7% 1,485 1,646 -9.8%
Capital expenditures 183 116 57.8% 212 -13.4% 398 430 -7.5%
(1) Non-fuel retail includes convenience stores, car wash, lube change, property management and vehicle inspection
Other operating metrics
The number of fuel transactions in the UAE by the network expansion, improvement in customer
increased by 3.7% in Q3 2023 year-on-year and by sentiment as well as the ongoing growth in
0.2% in 9M 2023 year-on-year. This was supported economic activity and mobility in the UAE.
Fuel operating metrics Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 23 9M 22 YoY %
Number of service stations
518 511 1.4% 481 7.7% 518 481 7.7%
– UAE (1)
Number of service stations
67 64 4.7% 66 1.5% 67 66 1.5%
– Saudi Arabia (1)
Number of service stations
243 241 0.8% 243
– Egypt (1)
Total number of service
828 816 1.5% 547 51.4% 828 547 51.4%
stations (1)
Throughput per station –
3.1 3.1 0.0% 2.9 7.1% 9.1 8.8 3.2%
GCC (million liters)
Number of fuel transactions
46.1 44.1 4.6% 44.5 3.7% 132.7 132.5 0.2%
– UAE (million)
(1) At end of period
17 | P ageADNOC Classification: Public
Q3 2022 and 9M 2022 non-fuel transactions in the In Q3 2023, convenience stores gross profit
UAE increased by 14.1% and 13.9% year-on-year, increased by 6.7% to AED 70 million and in 9M 2023
respectively, driven by improving consumer by 11.4% to AED 204 million driven by higher
sentiment, enhanced customer offerings following number of transactions as a result of enhanced
revitalization of the convenience stores, and customer offerings following revitalization of the
marketing and promotion campaigns under ADNOC convenience stores, marketing, and promotion
Rewards loyalty program to attract higher footfall and campaigns as well as the higher F&B sales.
increase customer spending.
Average gross basket size increased by 1.8% year-
Convenience store conversion rate increased by 350 on-year in Q3 2023 compared to Q3 2022, and by
bps from under 21.0% in 9M 2022 to 24.4% in 9M 2.4% year-on-year in 9M 2023 compared to 9M
2023 and by 285 bps from 21.3% in Q3 2022 to 2022.
24.2% in Q3 2023.
In its property management business, the Company
The UAE convenience stores revenue increased by continues to transition its tenancy business to a
15.6% to AED 208 million in Q3 2023 compared to revenue-sharing model to maximize revenues and
Q3 2022, and by 16.4% to AED 616 million in 9M profitability. In 9M 2023, the number of occupied
2023 compared to 9M 2022, mainly driven by higher properties increased by 2.1% year-on-year.
number of transactions compared to the same period
of last year. A number of vehicles inspected (fresh tests) in the
Company’s vehicle inspection centres increased by
53% in Q3 2023 compared to Q3 2022 and by 44%
in 9M 2023 compared to 9M 2022, driven by a higher
number of vehicle inspection centres, introduction of
new services, and supported by marketing
promotions.
18 | P ageADNOC Classification: Public
Non-fuel operating metrics Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 23 9M 22 YoY %
Total number of non-fuel
11.2 11.0 2.3% 9.9 14.1% 32.8 28.8 13.9%
transactions – UAE (million) (1)
Number of convenience stores
355 351 1.1% 366 -3.0% 355 366 -3.0%
– UAE (2)
Convenience stores revenue
208 207 0.4% 180 15.6% 616 529 16.4%
(AED million) – GCC
Convenience stores gross
70 68 2.8% 65 6.7% 204 183 11.4%
profit (AED million) - GCC
Gross margin, % 33.6% 32.8% 36.4% 33.1% 34.6%
Conversion rate (C-store sites
24.2% 24.8% 21.3% 24.4% 21.0%
only), % (3)
Average basket size – UAE
21.5 21.8 -1.5% 21.6 -0.4% 21.9 21.9 0.3%
(AED) (4)
Average gross basket size –
25.3 25.7 -1.6% 24.9 1.8% 26.0 25.4 2.4%
UAE (AED) (5)
Number of Property
298 280 6.4% 317 -6.0% 298 317 -6.0%
Management tenants – UAE (2)
Number of occupied properties
1,024 981 4.4% 1,003 2.1% 1,024 1,003 2.1%
for rent – UAE (2)
Number of vehicle inspection
33 33 0.0% 32 3.1% 33 32 3.1%
centres – UAE (2)(6)
Number of vehicles inspected
– fresh tests – UAE 318 294 8.0% 208 52.9% 909 633 43.8%
(thousands)
Other vehicle inspection
transactions – UAE 54 52 4.3% 69 -21.4% 161 221 -27.2%
(thousands) (7)
(1) Includes convenience stores, car wash and oil change transactions
(2) At end of period
(3) Number of convenience stores transactions divided by number of fuel transactions at sites with convenience stores
(4) Average basket size is calculated as convenience store revenue divided by number of convenience store transactions
(5) Average gross basket size is calculated as convenience store revenue (including revenue from consignment items shown under other
operating income) divided by number of convenience store transactions
(6) Includes one permitting centre
(7) Other vehicle inspection transactions include number of vehicles inspected (re-tests) and sale of safety items at vehicles inspection
centres
19 | P ageADNOC Classification: Public
Commercial segment – B2B (corporate and aviation)
Volumes
In Q3 2023, commercial fuel volumes increased by In 9M 2022, commercial fuel volumes increased by
51.2% year-on-year, mainly attributable to 32.0% compared to 9M 2022, mainly as a result of
consolidation of TotalEnergies Marketing Egypt. consolidation of TotalEnergies Marketing Egypt.
In GCC markets (UAE and KSA), 9M 2023 volumes
In GCC markets (UAE and KSA), Q3 2023 volumes
increased by 17.3% compared to 9M 2022.
increased by 34.1% compared to Q3 2022, driven
Corporate fuel volumes increased by 19.2% year-
by growth in both corporate and aviation businesses
on-year and were partially offset by a 6.2% year-on-
on the back of new corporate contracts signed in
year reduction in aviation fuel volumes sold to
2022 and 9M 2023.
strategic customers.
Commercial segment
Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 23 9M 22 YoY %
volumes (million liters)
Gasoline 69 75 -7.7% 66 4.3% 216 196 10.5%
Diesel 806 688 17.1% 520 54.9% 2,186 1,617 35.2%
Aviation 100 108 -7.0% 37 172.4% 278 170 62.8%
Other (1) 142 136 4.1% 115 22.6% 439 381 15.4%
Total 1,117 1,007 10.9% 739 51.2% 3,119 2,364 32.0%
Of which GCC 991 875 13.2% 739 34.1% 2,773 2,364 17.3%
Of which Egypt 126 131 -3.8% 346
(1) Includes LPG, lubricants, and base oil
Financial results
the gross profit growth. Underlying EBITDA
Q3 2023 commercial segment revenue increased
(EBITDA excluding inventory movements)
by 7.4% compared to Q3 2022, despite lower prices
increased by 25.5% year-on-year driven by the
and was supported by consolidation of
higher volumes.
TotalEnergies Marketing Egypt. Corporate business
revenue was nearly unchanged in Q3 2023 9M 2022 commercial segment revenue increased
compared to Q3 2022, while aviation business by 4.7% compared to 9M 2022, mainly driven by
revenues increased year-on-year by 70.9%. consolidation of TotalEnergies Marketing Egypt.
9M 2022 commercial segment gross profit
Q3 2023 commercial segment gross profit
decreased by 12.8%. In its corporate business
increased by 51.3% year-on-year to AED 396
ADNOC Distribution recorded AED 176 million
million as in the corporate business the Company
inventory gains in 9M 2022 in a rising oil price
recorded AED 51 million inventory gains in Q3 2023
environment while in 9M 2023 the inventory gains
in a rising oil price environment vs. AED 21 million
were AED 31 million. In addition, commercial
in Q3 2022. Q3 2023 gross profit was also
margins were under pressure in a declining oil price
supported by higher volumes partially offset by
environment.
pressure on commercial margins. Q3 2023
commercial segment gross profit increase year-on-
9M 2022 commercial segment EBITDA decreased
year is also due to reclassification of certain OPEX
by 7.0% year-on-year, due to the gross profit
items to Costs of Goods Sold (COGS) in Q3 2022.
reduction. Underlying EBITDA (EBITDA excluding
inventory movements) increased by 12.3% year-on-
Q3 2023 commercial segment EBITDA increased
year supported by the higher volumes.
by 35.4% year-on-year to AED 331 million, due to
20 | P ageADNOC Classification: Public
Commercial segment
Q3 23 Q2 23 QoQ % Q3 22 YoY % 9M 23 9M 22 YoY %
(AED million)
Revenue 2,909 2,483 17.1% 2,708 7.4% 8,131 7,763 4.7%
Of which corporate 2,512 2,100 19.6% 2,476 1.5% 7,043 6,972 1.0%
Of which aviation 397 383 3.6% 232 70.9% 1,088 791 37.5%
Gross profit 396 310 27.8% 262 51.3%(1) 993 1,138 -12.8%
Of which corporate 316 240 31.5% 273 15.8%(1) 788 925 -14.8%
Of which aviation 80 70 14.8% -11 NM(1) 205 213 -3.7%
EBITDA 331 249 32.7% 244 35.4% 802 862 -7.0%
Of which corporate 250 184 35.5% 219 14.0% 602 748 -19.5%
Of which aviation 81 65 24.7% 25 220.7% 200 114 74.9%
Operating profit 314 229 37.2% 238 32.0% 751 826 -9.1%
Capital expenditures 0 1 NM 1 NM 2 4 -59.0%
(1) Change is partially due to reclassification of certain OPEX items to Costs of Goods Sold (COGS) in Q3 2022 (refer to page 6 for details)
NM: Not meaningful
21 | P ageADNOC Classification: Public
Share trading and ownership
ADNOC Distribution shares are traded on the Abu An average of 8.2 million shares traded daily in 9M
Dhabi Securities Exchange (ADX) under the symbol 2023 (0.7x 2022 level). In 9M 2023, the average
ADNOCDIST. The closing share price as of 30 daily traded value of the Company’s shares was
September 2023 was AED 3.75. In the period from approximately AED 34.4 million (0.7x 2022 level).
1 January 2023 through 30 September 2023, the
As of 30 September 2023, ADNOC owned 77%,
share price ranged between AED 4.64 and AED
while 23% of ADNOC Distribution outstanding
3.71 at close. ADNOC Distribution market
shares were publicly owned by institutional and
capitalization was AED 46.9 billion as of 30
retail investors.
September 2023.
Potential risks
Key risks potentially affecting ADNOC Distribution’s exposure to these risks. For more detailed
financial and operational results include supply information on risks and risk management, please
chain risks, asset integrity and information refer to the Risk Factors section of the international
technology risks. The Company has identified and offering memorandum dated 26 November 2017
implemented several key controls and mitigation relating to ADNOC Distribution IPO, which is
strategies to ensure business continuity, including available on the Company’s website at
engineered controls and managed controls as well www.adnocdistribution.ae
as contractual safeguards to limit its financial
22 | P ageADNOC Classification: Public
Q3 2023 Earnings conference call details
A conference call in English for investors and analysts will be held on Monday, November 13, 2023, at 5 p.m.
UAE / 1 p.m. London / 8 a.m. New York. To access the management presentation, followed by a Q&A session,
please connect through one of the following methods:
Webcast
Click here to join the webcast
Please note that participants joining by webcast will be able to ask questions via a chat box within the webcast
player
Note: Click on the link above to attend the presentation from your laptop, tablet, or mobile device. Audio will
stream through your selected device. If you have technical difficulties, please click the “Listen by Phone” button
on the webcast player and dial one of the numbers provided therein.
Audio Call Dial in Details:
UAE (Toll Free): 8000 3570 2606
KSA (Toll Free): 800 844 5726
UK (Toll Free): 0800 279 0424
US (Toll Free): 800-289-0462
Passcode: 208329
For other countries, please connect to the above webcast link, select the “Listen by Phone” option on the webcast
player and click on the audio numbers to access the dial in information
The presentation materials will be available for download in English on Friday, November 10, 2023 at
https://www.adnocdistribution.ae/en/investor-relations/investor-relations/downloads/
Reporting date for the Q4 2023
We expect to announce our fourth quarter and full year 2023 results on or around February 7, 2024.
Contacts
Investor Relations
Tel.: +971 2 695 9770
Email: ir@adnocdistribution.ae
Athmane Benzerroug
Chief Strategy, Sustainability and Transformation Officer
Email: athmane.benzerroug@adnocdistribution.ae
November 10, 2023
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
23 | P ageADNOC Classification: Public
Glossary
▪ Net debt is calculated as total interest bearing debt less cash and bank balances (including term deposits
with banks).
▪ Free cash flow is calculated as net cash generated from operating activities less payments for purchase
of property, plant & equipment, and advances to contractors.
▪ Capital employed is calculated as the sum of total assets minus non-interest bearing current liabilities.
▪ Return on capital employed is calculated as operating profit for the twelve months ended divided by
capital employed on the last day of the period presented.
▪ Return on equity is calculated as profit distributable to equity holders of the Company for the period of
twelve months ended divided by equity attributable to owners of the Company on the last day of the
period presented.
▪ Net debt to EBITDA ratio is calculated interest bearing net debt as of the end of the period presented,
divided by EBITDA for the twelve months ended on the last day of the period presented.
▪ Leverage ratio is calculated as (a) interest bearing net debt, divided by (b) the sum of interest bearing
net debt plus total equity.
▪ Average basket size is calculated as convenience store revenue divided by number of convenience
store transactions
▪ Average gross basket size is calculated as total convenience store sales revenue (including revenue
from consignment items shown under other operating income) divided by number of convenience store
transactions.
24 | P ageADNOC Classification: Public
Cautionary statement regarding forward-looking statements
This communication includes forward-looking statements which relate to, among other things, our plans,
objectives, goals, strategies, future operational performance, and anticipated developments in markets in which
operate and in which we may operate in the future. These forward-looking statements involve known and
unknown risks and uncertainties, many of which are beyond our control and all of which are based on
management’s current beliefs and expectations about future events. Forward-looking statements are sometimes
identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “will”, “could”, “should”,
“would”, “intends”, “estimates”, “plans”, “targets”, or “anticipates” or the negative thereof, or other comparable
terminology. These forward-looking statements and other statements contained in this communication regarding
matters that are not historical facts involve predictions and are based on the beliefs of our management, as well
as the assumptions made by, and information currently available to, our management. Although we believe that
the expectations reflected in such forward looking statements are reasonable at this time, we cannot assure you
that such expectations will prove to be correct. Given these uncertainties, you are cautioned not to place undue
reliance on such forward looking statements. Important factors that could cause actual results to differ materially
from our expectations include, but are not limited to: our reliance on ADNOC to supply us with substantially all
of the fuel products that we sell; an interruption in the supply of fuels to us by ADNOC; changes in the prices
that we pay ADNOC for our fuels and to the prices that we are allowed to charge our retail customers in the
UAE; failure to successfully implement our operating initiatives and growth plans, including our mixed-mode
service offering, our convenience store optimization initiatives, our cost savings initiatives, and our growth plans;
competition in our markets; decrease in demand for the fuels we sell, including due to general economic
conditions, improvements in fuel efficiency and increased consumer preference for alternative fuels; the dangers
inherent in the storage and transportation of the products we sell; our reliance on information technology to
manage our business; laws and regulations pertaining to environmental protection, operational safety, and
product quality; the extent of our related party transactions with ADNOC and our reliance on ADNOC to operate
our business; the introduction of VAT and other new taxes in the UAE; failure to successfully implement new
policies, practices, systems and controls that we implemented in connection with or following our IPO; any
inadequacy of our insurance to cover losses that we may suffer; general economic, financial and political
conditions in Abu Dhabi and elsewhere in the UAE; instability and unrest in regions in which we operate; the
introduction of new laws and regulations in Abu Dhabi and the UAE; and other risks and uncertainties detailed
in our International Offering Memorandum dated 26 November 2017 relating to our initial public offering and the
listing of our shares on the Abu Dhabi Securities Exchange, and from time to time in our other investor
communications. Except as expressly required by law, we disclaim any intent or obligation to update or revise
these forward-looking statements.
25 | P age

Sentiment: positive