Abu Dhabi’s ADNOC Distribution is set to invest in the construction of hundreds of petrol stations in Egypt, with a projected investment of at least $1B for the establishment of 400 new outlets.
The move follows the firm’s acquisition of TotalEnergies Marketing Egypt (2023), which expanded its foothold in the country’s fuel market to nearly 250 petrol pumps.
Two Pronged Approach
According to a report by Saudi Asharq Business news, an unnamed Egyptian government official indicated that the new investment will unfold in two phases, each comprising the development of 200 petrol stations.
ADNOC Distribution is exploring various operational models, including the possibility of independently establishing stations for the first time in Egypt.
The firm may also partner with the Egyptian General Petroleum Corporation (EGPC) to either build new stations or enhance existing sites, and it is also considering leasing arrangements for some projects.
Hurghada and Sphinx Collaboration
ADNOC Distribution plans to invest approximately $50M to enhance its aircraft refuelling services at Sphinx and Hurghada International Airports as part of an agreement with the EGPC.
The investment signifies the company’s commitment to broadening its operational capabilities within the aviation sector.
The company has experienced robust financial performance, as evidenced by the announcement of a second-quarter dividend following a year-on-year revenue increase driven by higher fuel volumes and network expansion.
The board of directors confirmed a $175M dividend, equating to 5.14 fils per share, scheduled for distribution this month.
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