Adnoc’s retail arm Adnoc Distribution reported a 14.3% y-o-y decline in net income attributable to shareholders to AED 580 mn in 4Q 2024, according to the company’s management report (pdf).The decline was driven by inventory movements, AED 60 mn in corporate income tax expenses, and one-off items. Revenue for the quarter fell 7.6% y-o-y to AED 8.8 bn due to lower selling prices.

For 2024, net income decreased 7% y-o-y to AED 2.4 bn, according to the firm’s financials (pdf), impacted by higher finance costs and AED 243 mn in corporate income tax expenses. Revenues grew 2.4% y-o-y to AED 35.5 bn, supported by increased fuel volumes, a growing contribution from non-fuel retail businesses, and timing of the consolidation of TotalEnergies Marketing Egypt.

Looking ahead: Adnoc Distribution plans to add 40 to 50 new stations across its network, including 30 to 40 in Saudi Arabia in 2025, the company said in its earnings release. The firm also aims to install around 100 additional fast and super-fast charging points in 2025. It is also working on more than 20 AI-focused projects that will integrate AI and advanced technologies across all business segments in a bid to enhance operational efficiency and improve customer experience.

Risks ahead: The firm faces risks that could potentially affect its financial and operational results, such as supply chain risks, asset integrity, and IT-related risks, according to the earnings release. Adnoc Distribution has identified and already implemented mitigation strategies for business efficiency, such as engineered controls and contractual safeguards to limit financial exposure to these risks, according to its earnings release.

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