RIYADH: ADNOC Distribution expects its acquisition of Shell Downstream South Africa’s portfolio to begin contributing to the company’s financial flows after the deal closes in the first half of 2027, according to CEO Bader Saeed Al-Lamki.
Completion of the deal will proceed in line with procedures required by the relevant authorities in South Africa, Al-Lamki said in an interview with Alaa Joudy on Asharq Bloomberg. He added that the company expects to close the deal “by the end of the first half of 2027, after which it will begin contributing to our financial flows.”
He also noted that the company is close to announcing the local partner that will be part of the deal's structure, saying this would happen “within the coming few weeks.”
He added that the partner would come from the local market in line with South Africa's economic empowerment requirements, with its stake not exceeding 27 percent or 28 percent, noting that the company has completed the evaluation stages and is now working on finalizing the remaining procedures.
ADNOC Distribution signed a final agreement in early July to acquire full ownership of Shell Downstream South Africa, in a deal valued at approximately $1 billion before net debt and working capital adjustments.
Will ADNOC continue its dividend payouts?
On deal financing, Al-Lamki confirmed that ADNOC Distribution will rely on a mix of available liquidity and credit facilities, noting that the company’s financial position provides flexibility to carry out the acquisition. “We have a strong balance sheet, and there is no challenge at all,” he said.
The CEO affirmed that expansion plans will not affect the dividend distribution policy, despite oil market fluctuations, pointing to the company’s business model, which relies on diversified revenue sources spanning retail and commercial fuel sales, non-fuel activities, and EV charging.
He added: “There is no reason for shareholders to worry that the distribution policy will change; it will continue,” noting the company’s continued commitment to its announced distribution policy through 2030.
The firm had previously announced its second quarter 2026 financial results, which showed a 94 percent year-on-year jump in profits, reaching 1.3 billion Emirati dirhams ($354 million), exceeding average estimates by around 30 percent.
ADNOC Distribution’s regional expansion
The company continues to execute its regional expansion plans, Al-Lamki confirmed, noting that growth includes Saudi Arabia and Egypt, alongside the South Africa deal.
In the Saudi market, Al-Lamki said the company aims to raise its station count to 300 by 2028, up from around 200 currently, as part of its Kingdom expansion strategy. He added that the business also operates around 240 stations in Egypt, with a focus that extends beyond the station network to include aviation fuel and lubricants.
He noted that the Shell deal will raise the company’s network to around 1,600 stations upon completion, compared to roughly 1,045 currently, affirming that business diversification and geographic spread give the company flexibility to continue growing.
“What distinguishes ADNOC Distribution is the flexibility of its business model, and the diversity of its income sources and cash flows, which allows us to keep growing while sustaining our distribution policy,” he said.
