ADNOC Distribution targets 1,000 stations in 5-year growth strategy
Published on: Feb 29, 2024
The company will invest $250 to $300 million annually to achieve a 20% increase from its current fuel retail network of 840 stations.
ADNOC Distribution has revealed its five-year growth strategy, which involves expanding its fuel retail network up to 1,000 service stations.
This 20% growth from its current 840 stations is set to be achieved by allocating $250 million to $300 million annually for CAPEX, with 70% focused on growth. A higher number of stations has been planned to reach a 50% rise in non-fuel transactions and a 25% in convenience store purchases.
ADNOC’s subsidiary has also revealed other expansion strategies, such as scaling up a franchise and sub-franchise model.
“Since its market debut in late 2017, the company has delivered robust financial performance and doubled shareholder value. The company is well positioned to take advantage of evolving energy markets and enter a new phase of growth,” said Bader Saeed Al Lamki, CEO of ADNOC Distribution
In addition, the firm expects to operate a minimum of 500 fast and superfast electric vehicle (EV) charging points, as it aims to create a national EV charging network. This number amounts to a tenth-fold of last year’s increase in e-mobility services for the chain.
ADNOC’s growth plans also include increasing the contribution from international operations in Saudi Arabia and Egypt and improving its operational efficiency, targeting up to $50 million of additional savings by 2028.
