Abu Dhabi’s ADNOC Distribution reports Dhs671m in net profit for Q1 2022

Abu Dhabi-listed fuel and convenience retailer ADNOC Distribution recorded Dhs671m in net profit for Q1 2022, posting a 6.3 per cent year-on-year increase.

Meanwhile, its EBITDA rose 7.8 per cent year-on-year to total Dhs881m.

During the first quarter of 2022, we delivered EBITDA of AED 881 million and Net Profit of AED 671 million. We have continued to execute on our smart growth strategy and remain well positioned for further domestic and international expansion.

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— ADNOC Distribution (@ADNOCdist) May 10, 2022

The company witnessed a 11 per cent increase year-on-year in total fuel volumes compared to the first quarter of 2021. In addition, corporate fuel volumes witnessed a 19 per cent year-on-year surge, partially driven by the signing of new sales agreements confirmed in the final quarter of 2021.

Non-fuel retail gross profit grew 11 per cent compared to an year-earlier period, with a 20 per cent increase in non-fuel transactions across the UAE.

ADNOC Distribution increased its footprint throughout the first quarter of the year, delivering local and international network expansion and bringing its network total to more than 500 across all geographies.

In Saudi Arabia, the company added 15 new stations, increasing its network to 55. In the UAE, the company opened three new stations, taking its total domestic network to 464.

The company also expanded its product offering with the launch of the ADNOC Voyager Green Series, which offered customers a 100 per cent plant-based lubricant range for both petrol and diesel engines.

Read: UAE’s ADNOC Distribution launches range of 100% plant-based engine oils

Bader Saeed Al Lamki, CEO, ADNOC Distribution said: “ADNOC Distribution has had a positive start to 2022. We must stay relevant and deliver on our customers’ desire for continued convenience, while ensuring we remain focused on the future, creating solutions that are evolving in response to, and ahead of, changing market dynamics.

“Our network expansion has maintained strong momentum throughout the first quarter of the year. This can be seen particularly in Saudi Arabia where we have grown our service station network by 40 per cent. We are well on track to deliver 60-80 stations across the UAE and international markets by the end of this year. We have already marked a number of milestones in the first quarter, with the opening of 18 new service stations across the UAE and Saudi Arabia, as well as the launching of new products and enhancing of services, with progress set to continue and accelerate throughout the year.”

The ADNOC Rewards loyalty programme also continued to add members in the first quarter of 2022, with more than 1.3 million members enrolled and 83 partners providing discounts and deals through the ADNOC Distribution app. The programme has been expanded to include a fuel redemption option, whereby customers can pay for their fuel with their ADNOC Rewards points.

The company’s shareholders meanwhile approved a dividend of $350m for the second half of 2021, which was paid in April 2022, bringing the total dividend of 2021 to $700m (20.57 fils per share).

Read: ADNOC Distribution approves H2 2021 dividend of Dhs1.285bn

The company’s dividend policy sets a dividend of minimum Dhs2.57bn for 2022, providing payback to shareholders until April 2023.

The company also continues to enhance its investor position, with its inclusion in the new blue chip index launched as a partnership between FTSE Russell and Abu Dhabi Securities Exchange (ADX).

In 2021, it was also included in the MSCI Emerging Markets (EM) Index and in the FTSE EM Index.

Read: Abu Dhabi’s ADNOC Distribution included in FTSE Emerging Markets Index