UAE: ADNOC Distribution reports record $1 billion EBITDA in 2023

UAE: ADNOC Distribution reports record $1 billion EBITDA in 2023

Abu Dhabi: ADNOC Distribution on Wednesday reported robust results for 2023, recording a 4. 6 per cent year-on-year growth in earnings before interest, tax, depreciation and amortisation (EBITDA) to $1. 002 billion (AED3. 68 billion). With this, the Company has successfully delivered on the five-year target it communicated to the market during its first Capital Markets Day in May 2019. In addition, the underlying EBITDA for 2023, excluding the impact of inventory movements, increased by 15. 4 per cent year-on-year. This growth was fueled by a double-digit increase in fuel volumes and non-fuel business, along with a rising contribution from international operations. The EBITDA also benefited from the Company's efficiency improvement initiatives, leading to like-for-like operating expenditure (OPEX) savings of USD 28 million (AED103 million). ADNOC Distribution capitalised on new opportunities in both domestic and international markets by strategically allocating capital for growth. In 2023, the Company generated a strong free cash flow of USD 1. 1 billion (AED4. 0 billion) while maintaining a robust balance sheet with a net debt-to-EBITDA ratio of 0. 62x as of December 31, 2023. This solid financial standing positions the Company favourably for future growth and shareholder value creation. Bader Saeed Al Lamki, CEO