ADNOC Distribution: Consistent delivery

Research evidence excerpt

ADNOC Distribution: Consistent delivery

Equity Research

European Integrated Energy

13 May 2026

ADNOC Distribution

Consistent delivery

ADNOC Distribution delivered a resilient Q126 performance

despite geopolitical challenges and lower inventory gains,

ADNOCDIST.AD/ADNOCDISsupported by diversified earnings, stable operations and UH OVERWEIGHT

disciplined execution. With superior ROCE, the business Unchanged

European Integrated Energy POSITIVE

underscores consistent returns and strong cash generation. Unchanged

Price Target AED 5.00

Unchanged

Sustained momentum despite headwinds: ADNOC Distribution delivered double-digit growth

in both EBITDA and net profit in 1Q26, with reported EBITDA and net income beating company- Price (12-May-26) AED 3.80

compiled consensus by 9% and 17%, respectively. EBITDA rose 12% y/y to $307m, while net Potential Upside/Downside +31.6%

Source: Bloomberg, Barclays Research

profit increased c.21% y/y to $210m, despite a sharply lower contribution from inventory gains,

which fell to just $6m in 1Q26 from $30m in 1Q25. Excluding inventory gains and one-off items,

underlying EBITDA reached $305m, up 24% y/y, highlighting the strength of the core business. Market Cap (AED mn) 47500

While NFR continues to grow faster than fuel business, within fuel, retail led volumes growth. Shares Outstanding (mn) 12500.00

Although corporate volumes declined for a second consecutive quarter, the company delivered Free Float (%) 23.00

higher margins through targeted rationalisation of low-margin and tail-end customers. 52 Wk Avg Daily Volume (mn) 8.5

Dividend Yield (%) 5.41

Cash generation remained robust prior to working capital movements, with operating cash flow Return on Equity TTM (%) 89.81