UAE’s ADNOC Distribution, the fuel distribution arm of Abu Dhabi National Oil Company (ADNOC), posted a net profit of Dhs2.22bn in 2019, marking a 4.2 per cent rise, compared to Dhs2.12bn in 2018, it announced on Wednesday.
However, ADNOC Distribution’s revenues for 2019 totaled Dhs21.3bn, dipping 6.8 per cent from Dhs22.89bn in 2018.
Free cash flow generation was up 16.4 per cent year-on-year to Dhs2.33bn for 2019. Meanwhile, reflecting the firm’s constant pursuit for realising cost efficiencies, the company witnessed a 8.6 per cent reduction in operating expenses in 2019 compared to 2018.
The firm’s net profit for Q4 2019 reached Dhs496m, recording an increase of 11.3 per cent compared to Dhs446m in Q4 2018. However, fourth quarter revenues reached Dhs5.4bn, declining 9.1 per cent from Dhs5.9bn in Q4 2018.
Total fuel volumes sold increased by 2 per cent in the fourth quarter of 2019 compared to Q4 2018, driven by consistent improvement in the company’s retail business.
In Q4 2019, the firm launched a spate of initiatives underpinning the customers’ overall experience such as the rolling out of its fuel and retail station ‘ADNOC On the Go’. It also unveiled a new loyalty programme to offer its customers access to exclusive benefits from ADNOC Distribution and partner entities, the statement said.
Additionally, in Q4 2019, ADNOC Distribution scraped the Dhs10 fee for having assistance while refuelling vehicles.
“We continue to transform ADNOC Distribution into a world-class, customer-focused, commercially driven company with a determined focus on driving profitable growth,” said Ahmed Al Shamsi, ADNOC Distribution’s acting CEO.
“As we sharpen our focus on customer experience and pursue growth opportunities, both domestically and internationally, we will expand all our distribution channels to reach larger market segments and sustain volume growth. Finally, OPEX reduction and optimization of CAPEX also remain key priorities”.