ADNOC Distribution celebrated a strong set of H1 FY26 results earlier this week following its planned diversification and upcoming expansion in South Africa.
Net profits are up 59% while EBITDA is up 39% YoY on H1 FY25 despite the geopolitical headwinds facing the Gulf.
Ali Siddiqi, the newly appointed Chief Financial Officer at ADNOC Distribution, sat with Angus Anderson to unpack the H1 results, the Shell South Africa acquisition, ADNOC’s latest AI initiatives and his personal ambitions as CFO of the UAE energy giant.
Results Breakdown
Angus Anderson, Editor, Finance Middle East: I’m Angus Anderson, the Editor of Finance Middle East, and today I am joined by a very special guest Ali Siddiqi, CFO, ADNOC Distribution. Thanks for joining me today, Ali.
Ali Siddiqi, CFO, ADNOC Distribution: Thank you very much Angus. It is a pleasure to be here.
Angus Anderson: ADNOC Distribution’s H1 results are out, what amazing results. Net profits up 59% YoY and EBITDA up 39% YoY. What’s your reaction?
Ali Siddiqi: Look, I am very pleased not only as the CFO but as a very proud employee of ADNOC Distribution.
“Remember Angus, quarterly numbers and half-yearly numbers are a snapshot in time.”
I think what is most important is to actually assess whether the strategy and the promises we have made are they delivering or not.
“Quarter on quarter we have been growing for the past ten quarters and for the past many quarters it has been double digit growth.”
If you scratch the surface of the H1 results and assess the underlying business, then it is evident that the core business continues to grow double digit even after taking out some of the impacts of inventory effects and it is heartening to see.
We are very happy about it but we have to keep going.
H2 Outlook
Angus Anderson: Yes, what is H2 looking like? Are you looking to sustain those results?
Ali Siddiqi: Look, our strategy remains the same. Growth, growth, and growth.
You’ve got all kinds of exciting stuff all across the spectrum. We’ve got our network growth which is continuing. On the Non-fuel retail front, we are aspiring to double our non-fuel retail transactions by 2030.
The roll out of the Hubs commenced in 2025 and a step towards developing retail destination of choice with an exciting response from the customers is continuing. EV roll out continues and so does the international expansion notably the South Africa acquisition which we announced recently.
Strategy execution will continue as it stands, operational excellence will continue and the numbers are an outcome in the end.
Angus Anderson: Of course.
With the results, it is two-fold: there is diversification and the expansion. Within the UAE, there are the Hub networks concentrated in Abu Dhabi. How is ADNOC Distribution making sure that the network, the EV network, spans across the whole UAE not just the Abu-Dhabi-Dubai belt?
Ali Siddiqi: You see, everything has to be based on a combination of factors. Economics is one of them, consumer demand is another one of them.
Take EVs, for example, our strategy is very clear. We want to electrify the main highways the major arteries across the UAE, so you saw the E11 Mega EV Hub which we launched in H1 and that is the largest in the region of its type and it’s not just a place where you can come and charge your car there’s QSR, there’s office space to work, there is internet and there is a variety of proposition for our customers to avail.
B2B Business Boom
Ali Siddiqi: You talked about diversification.
We have over the years built a strong B2B business and I call this our swing factor. When our B2C volume was slow in Q2 our B2B business, as it has been designed, came to the party and it delivered incredible results so the diversification journey delivered and continues.
It’s based on the strategy which we unveiled in 2024; it’s essentially striving for world class performance.
Shell South Africa: ADNOC Distribution’s Acquisition (FY27)
Angus Anderson: From diversification, obviously ADNOC’s operations are expanding, you’ve announced the $1B acquisition that will go through next year in South Africa following your expansion in Saudi (2018), Egypt (2023): this is the fourth market, including the UAE, that ADNOC Distribution is set to operate in.
Why South Africa, why not other BRIC nations? What shareholder value will this acquisition give to shareholders?
Why South Africa?
Ali Siddiqi: Yes, Angus. South Africa, if you look, there are three or four very core strategic attributes associated with that market which obviously made it attractive for us.
The platform which we are buying is a 120 year old proven successful business serving millions of customers and of course millions more after we come in after the legal process is completed.
The regulatory framework is stable and it’s predictable; it’s very clear and not very different than what we have in the UAE.
The third element is we foresee a lot of opportunity to apply our successful experience in the Non Fuels space.
Last but not least but of course very important is the EPS accretion. The earnings accretion of 6% and EBITDA accretion of double digits helps us deliver the expected returns.
We have a very stringent investment screening criteria Angus and this transaction fitted well into that based after you translate all these attributes into numbers it actually fitted in very well. It well exceeded our investment threshold.
We are very excited about it but we need to complete the legal process first and then we’ll take it from there.
Future Expansion Plans for ADNOC
Angus Anderson: Can you tell us if there’s any other markets that ADNOC Distribution are looking at right now?
Ali Siddiqi: Look, we are always looking.
“Wherever there is fuel demand, ADNOC Distribution has interest. Africa, Southeast Asia are potential hunting grounds. We continue to evaluate but remember, we are in no deal fever. A transaction has to make sense, it has to create value from day one, and it has to be EPS accretive delivering competitive returns.”
AI and Shareholder Benefit
Angus Anderson: How are you making sure that shareholders benefit from the AI that ADNOC Distribution is providing?
Ali Siddiqi: “We have 20 very interesting AI initiatives ongoing.”
We just launched the ADNOC Engage that’s a digital media network integrated with AI.
Having said that we also have access to 250M transactions of consumers on our forecourts that gives us a very unique opportunity to use this data to do hyper-personalisation and all kind of very interesting other AI stuff.
Fundamentally, AI is an extremely important part of our business and no longer a standalone item. It is well integrated with everything which we do in today on the frontend and back office.
Permanent CFO, ADNOC Distribution
Angus Anderson: Obviously, you are newly announced the appointed permanent CFO ADNOC Distribution. Congratulations, Ali.
Ali Siddiqi: Thank you, Angus.
Angus Anderson: What are your priorities this year and in the next 5 years as CFO of ADNOC Distribution?
Ali Siddiqi: Actually transforming the finance team at ADNOC Distribution to a world class finance function remains at the very heart of what I would like to achieve.
I would like to leave this job whenever I do in a shape that others would want to find it.
“Finance has to be absolutely world class not only in terms of its processes and controls but also challenging and supporting the business to unlock growth.”
I don’t see finance as a function which is about bean counting or just doing the number crunching. I really see finance at the very heart of the business driving the business, guiding the business and where it’s necessary… challenging the business but most importantly supporting the business hand in hand to deliver value.
“For me having that business intimacy, business proximity underpinned by world class processes is very important and that is fundamentally my vision for the finance team.”
I see AI as a major enabler. We have got some very interesting and exciting initiatives ongoing. Last but not least that shareholder connectivity is also very important with the investor community.
I’m very keen to build a very strong relationship based on trust with our shareholders.
Risk is the New Normal
Angus Anderson: Obviously, you’re no stranger to risk as CFO but obviously what we see in the region are the geopolitical headwinds facing the Gulf despite us coming out of that now.
How are you managing risk as CFO of ADNOC Distribution?
Ali Siddiqi: Firstly, I think volatility is no longer just a one off kind of thing.
“Volatility is literally permanent. We have to embrace volatility I’m afraid. As a CFO, the single biggest risk is not being able to achieve all our aspirations.”
There are things we control and there are things which we don’t control. I would rather put my energies on the things which we control.
But when it comes to me when it comes to risk my main focus tends to be on the stuff which we can influence and what we can control.
“Unknowns and the uncontrollables are certainly there and the mantra has to be to ‘plan for the worst and hope for the best’ and put the best possible mitigations.”
I think the core energy and focus has to be in terms of what you control because that is where it is inexcusable not to be able to manage such risks properly.
Angus Anderson: Wise words indeed. Is there any other wisdom from your career beforehand, you have obviously worked in Pakistan, South Africa, Nigeria and the Netherlands that you are taking into this role at ADNOC now?
Ali Siddiqi: I think working with diverse talent, working with world class people is one takeaway which I have from my career.
I mean functional experience you can get in many places but working with some of the best talent starting with the UAE, Singapore, the Netherlands, Nigeria and South Africa… I’ve just been fortunate to work with world class people from whom I’ve learned a lot from.
What I would encourage everybody else to do is never close that learning window.
Ali Siddiqi is the Permanent Chief Financial Officer of ADNOC Distribution (2026-).
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