Abu Dhabi's ADNOC Distribution reports 22% rise in net profit for 2022
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Abu Dhabi’s ADNOC Distribution reports 22% rise in net profit for 2022

Abu Dhabi’s ADNOC Distribution reports 22% rise in net profit for 2022

The ADX-listed company reported a 15 per cent year-on-year growth in EBITDA, totalling Dhs3.52bn in 2022

Abu Dhabi's ADNOC Distribution reports 22% rise in net profit for 2022

ADNOC Distribution, UAE’s fuel and convenience retailer, has reported Dhs2.75bn ($748m) in net profit for 2022, marking a year-on-year growth of 22 per cent.

The company’s earnings before interest, tax, depreciation and amortisation grew 15 per cent to reach Dhs3.52bn ($958m) in 2022, while its total fuel volumes and commercial volumes soared 8 per cent and 19 per cent, respectively.

ADNOC Distribution, which is listed on the Abu Dhabi Securities Exchange, aims to achieve a minimum of $1bn in EBITDA on the back of network expansion and higher non-fuel retail contribution.

“We have sustained our growth trajectory while generating strong cash flow and maintaining a solid financial position. ADNOC Distribution’s priority remains to accelerate achieving sustainable growth and building incremental shareholder value through efficient capital allocation,” said Bader Saeed Al Lamki, CEO of ADNOC Distribution.

The company’s board of directors recommended a cash dividend of Dhs1.285bn (10.285 fils per share) for H2 2022, which will be submitted for shareholder approval at the annual general assembly meeting in 2023. Subject to approval, the total dividend for the fiscal year 2022 is expected to be Dhs2.57bn (20.57 fils per share).

ADNOC Distribution also renewed its supply agreement with ADNOC for a new five-year term in 2022. The company opened 68 new ADNOC service stations in 2022 across the UAE and Saudi Arabia, including 21 during the year’s fourth quarter.

Meanwhile, the company’s international service station network reached 568 sites, including 502 in UAE and 66 in Saudi, as of 31 December 2022.

Non-fuel retail transactions increased 15 per cent during 2022, driven by focus on customer-centric initiatives such as ADNOC Rewards, the company said in a statement on Thursday.  The company also expanded its ADNOC Oasis network, operating 362 stores by the end of last year, up from 346 at the end of 2021.

Last year, the retailer entered into an agreement with TotalEnergies Marketing Afrique to acquire a 50 per cent stake in TotalEnergies Marketing Egypt for approximately $186m. The acquisition is expected to be completed in Q1 2023, pending satisfaction of certain conditions, including customary regulatory approvals.

Read: ADNOC Distribution acquires 50% stake in TotalEnergies Marketing Egypt

“The year was marked by several milestones in ADNOC Distribution’s history, including the signing of our largest-ever international acquisition in Egypt. We also opened a flagship service station in Dubai – our first on Sheikh Zayed Road,” added Al Lamki.

In terms of alliances, the company partnered with Abu Dhabi National Energy Company (TAQA) earlier this year to establish a mobility joint venture, E2GO. The new JV will build and operate electric vehicle services infrastructure in Abu Dhabi and the wider UAE.

Read: ADNOC Distribution, Taqa partner to offer EV charging points across UAE

On the sustainability front, the company also plans to install solar panels to power service stations and use biofuels in its fleet of vehicles in 2023 and beyond. It is also committed to decarbonising its operations and reducing carbon intensity by 25 per cent by end of the decade.

ADNOC Distribution announced converting an existing $ 1.5bn term loan into a sustainability-linked one.

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