ADNOC Distribution wants vehicle owners to be spending more quality time at their stations. that includes EV vehicle owners too, who need fast or super-fast charging points. Image Credit: Supplied

Dubai: The ADNOC owned fuel retailer wants you and your vehicle to spend more time at its locations. To this end, ADNOC Distribution wants to become a one-stop point for all kinds of car care.

That means tripling the number of car washes. Doubling the number of automotive oil changes. And expanding car service offerings.

All this while expanding the network past 1,000 locations (including those in Saudi Arabia and Egypt) over the next 5 years from the current 840 stations.

There is also a full-scale charging up for EVs and their owners too. The company targets a ‘minimum’ of 500 EV fast and super-fast charging points across its UAE-wide network, which would be a 10x increase over its 2023 tally. (The EV initiative is in alliance with TAQA, the Abu Dhabi utility firm.) 

We are confident in our ability to continue returning positive incremental shareholder value.

- Bader Saeed Al Lamki of ADNOC Distribution

Dividend will become sweeter

From this year on, shareholders will get a share of $700 million as dividend – or a minimum 75 per cent of net profit, whichever is higher. This is part of a new 5-year gameplan the company has drawn up.

Currently, the dividend policy is $700 million, or a minimum 75 per cent of distributable profit.

“Supported by our robust balance-sheet and strong cash flow generation, ADNOC Distribution’s new growth strategy is underpinned by three key drivers - domestic growth, international platforms, and future-proofing the business," said Bader Saeed Al Lamki, CEO. 

"In pursuit to become a multi-energy leader, the company is also scaling up its portfolio of low-carbon energy solutions including biofuels, EV and hydrogen in support of the decarbonization of the transport industry. We are confident in our ability to continue returning positive incremental shareholder value.”

Spending plans

The plan is for up to $50 million in like-for-like operating expenditure savings by 2028. And allocate $250 million to $300 million annually on capital expenditure, with '70 per cent focused on growth'.

"The company will reallocate capital towards convenience and mobility to transform its stations into destinations-of-choice," said a statement.

ADNOC Distribution CEO talks, EV super-chargers, new markets - and coffee
Q: The UAE, Saudi Arabia and Egypt - are you ready to add more?

For sure, we are ready to expand in the 3 markets, where we will reach 1,000 locations in the next 5 years. Beyond that, I would say we are open to go into new places - but that's not for me to say now. All that matters is how well we can keep providing quality return on investments to shareholders. ADNOC Distribution remains in growth mode.

Q: And how fast will you be adding to your super-charging network?

At the moment, we have 50 super charger sites. They are there in other emirates, not just Abu Dhabi. We will take these to more strategic locations - totaling 500 - in the country, where EV owners can be assured of 15-20 minute charge up times. If that gives owners a chance to better plan their journey, it's good.

Q: In your 5-year plan, you talk about about having more of your own options in the retail spaces at your stations. Why so?

Because it gives us a better chance on returns from our owned locations. We used to focus more on renting the retail spaces, but we do have our own F&B options, whether it's for coffee or pizza. Taking up those spaces ourselves makes good business sense.