Abu Dhabi National Oil Co For Distribution PJSC (ADX:ADNOCDIST)

Q2 2026 Abu Dhabi National Oil Company for Distribution PJSC Earnings Call Transcript

Aug 5, 2026 / 12:00 PM GMT

Release Date Price: د.إ4.07 (-0.73%)

Transcript

Key Points

Positve

Record H1 2026 net profit of $568 million, up 59% year-on-year, and EBITDA of $786 million, up 39%.
Underlying EBITDA grew 14% to $603 million, excluding inventory effects, demonstrating strong core business performance.
Return on capital employed exceeded 40%, the highest level ever and more than double the peer average.
Announced acquisition of Shell Downstream South Africa, expanding network by ~55% to 1,600 stations and expected to be earnings and cash flow accretive from day one.
Non-fuel retail gross profit more than doubled over five years to $140 million in H1 2026, with a CAGR of 16%, outpacing fuel retail growth.
EV charging business saw energy sold rise 2.1 times year-on-year, with fast and super-fast charging points expanded by 35%.
Dividend framework provides visibility with a $700 million annual floor through 2030, paid quarterly, with upside as profits grow.
Saudi Arabia network expanded 65% to 231 sites, with 70% under a capital-light DOCO model, scaling as designed.
Commercial segment gross profit grew 51%, driven by disciplined margin management and a 54% increase in aviation volumes.
Launched Engage by ADNOC, a retail media network, creating a new scalable source of non-fuel retail earnings.

Negative

Headline growth was partly driven by a favorable swing in inventory gains of $207 million versus $40 million in the prior year, which may not be sustainable.
Commercial segment margins are subject to international price volatility, with no specific guidance for normalization in the second half.
The company took a conservative approach to impairments of receivables due to geopolitical volatility, which could continue in the second half.
July fuel sales volumes showed only low single-digit growth, indicating a potential slowdown compared to the first half's 1.7% growth.
Cash OpEx rose 4% to $348 million in H1 2026, reflecting costs associated with network expansion and higher retail volumes.
The South Africa acquisition is subject to regulatory approvals and is not expected to complete until 2027, creating uncertainty.
Fuel retail volumes in the UAE and Saudi Arabia grew only 1.7%, a modest rate despite network expansion of over 11%.
The company trimmed lower-margin corporate volumes in the UAE commercial business, which could limit volume growth in that segment.
The backstop mechanism for inventory losses is settled quarterly in cash, but its effectiveness in a prolonged price decline remains untested.
CapEx guidance of $250 million to $300 million is maintained, but the company is focused on optimizing this envelope, which may limit aggressive expansion.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ADNOCDIST.AD - Abu Dhabi National Oil Company for Distribution PJSC
Q2 2026 Abu Dhabi National Oil Company for Distribution PJSC Earnings Call
Aug 05, 2026 / 12:00PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Good day, and welcome to the Adnoc Distribution Investor Call Q2 2026 Earnings.

Today's conference is being recorded.

At this time, I'd like to turn the conference over to Athman Benzourouk. Please go ahead.

--------------------------------------------------------------------------------
Unidentified_2 [2]
--------------------------------------------------------------------------------
Good afternoon, everyone, and thank you for joining us for Adnoc Distribution second quarter and first half 2026 earnings call.

I'm Atman Benzarouk, Chief Strategy, Transformation, and Sustainability Officer, and it is a pleasure to

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

7-Day Free Trial · Cancel Anytime

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.