How do you approach capital allocation across your existing business, new growth opportunities and international expansion?

Our approach is disciplined and focused on long-term value. We prioritise opportunities that deliver returns above our investment hurdle rates, strengthen cash generation and preserve balance-sheet flexibility. That means investing in areas where we can build on our existing capabilities, including non-fuel retail, digital services and selected international markets.

Our approach to capital allocation is disciplined and customer-led. We invest where we can create sustainable value, enhancing the customer experience, increasing dwell time and broadening our offer beyond fuel. Across existing and new markets, data and artificial intelligence (AI) enable us to better understand customer needs, optimise investment, and deliver more relevant mobility and convenience experiences. 

For us, growth must deliver sustainable returns, not just add volume.

What does the proposed acquisition of Shell’s downstream business in South Africa signal about Adnoc Distribution’s international expansion strategy?

We look for markets with resilient demand, transparent regulatory frameworks, attractive assets and clear opportunities to create value.

South Africa meets these criteria. Its fuel retail sector has similarities with the UAE, including a regulatory framework that provides protection against inflation and currency risks. It also offers attractive margins and demand potential supported by growth in the driving-age population.

Shell’s South African downstream business is a free-cash-flow-positive asset with established positions in fuel retail, convenience retail and lubricants.

Subject to completion and regulatory approvals, we expect the acquisition to increase Adnoc Distribution’s ebitda by approximately 13% and earnings per share by around 6% in the first full year after completion, while generating returns above our investment hurdle rate.

We also see opportunities to improve performance through network optimisation, supply operations, commercial activities and non-fuel retail.

We have entered a long-term agreement with Reatile Group as our local partner, reflecting the importance of local expertise and South Africa’s economic participation framework.

The transaction could also support faster dividend growth through higher net profit following completion, in line with our dividend policy.

We look for markets with resilient demand, transparent regulatory frameworks, attractive assets and clear opportunities to create value

How significant could non-fuel retail and international operations become to Adnoc Distribution’s earnings by 2030?

Over the past five years, we have more than doubled non-fuel retail gross profit, from $67m in the first half of 2021 to $142m in the first half of 2026. That represents compound annual growth of 16%.

Non-fuel retail gross profit increased 12% in the first half of 2026. We are targeting a doubling of non-fuel retail transactions by 2030 compared with 2023.

Our strategy is to future-proof our network by evolving service stations into destinations of choice, offering customers more reasons to visit and stay longer. The Hub by Adnoc brings this strategy to life, with three times the retail footprint of a traditional station. Its first seven locations delivered fuel volume growth five percentage points above the network average in H1 2026.

International growth is an important pillar of our strategy and a contributor to future earnings growth. We are focused on scaling our network through disciplined, capital-efficient models, deploying our proven capabilities across mobility, convenience and customer experience. This approach enables us to expand efficiently, capture attractive growth opportunities and create sustainable value across our international portfolio.

Our objective is to increase the contribution of these businesses to earnings while creating sustainable shareholder value.

Adnoc Distribution is transforming service stations into retail destinations

With fuel retail still generating around 60% of cash flow, how are you protecting earnings and dividend resilience as the business diversifies?

Fuel retail remains a strong foundation for the business. Its earnings are supported by fixed margins per litre and a margin backstop under our supply agreement with Adnoc.

At the same time, we are developing higher-margin revenue opportunities across non-fuel retail, electric vehicle (EV) charging and digital services.

We are progressing our ambition to electrify the UAE’s highways with more than 400 fast and superfast charging points already operational within our EV charging network, while digital initiatives include Engage by Adnoc, our retail media network. 

We are also becoming an AI-native company, with 20+ AI initiatives across the value chain to drive growth, enhance operational efficiency, elevate customer experience and future-proof our operations. 

This diversification is supported by a strong financial position. At the end of H1 2026, we had $1.4bn in liquidity and a net debt-to-ebitda ratio of 0.63. Free cash flow before working capital movements increased 74.5% year on year.

Since becoming the first Adnoc Group company to list on the Abu Dhabi Securities Exchange in 2017, we have returned more than $5.8bn to shareholders as of the first half of 2026.