ADNOC Distribution net profit dips 22.4% in H1 2020

ADNOC Distribution, the UAE’s largest fuel and convenience retailer, has reported a net profit of Dhs910m for the first half of the 2020, down 22.4 per cent from Dhs1.1bn in the corresponding period last year.

It also reported an underlying EBIDTA of Dhs1.42bn in H1 2020, up 7.6 per cent year-on-year.

For Q2 2020, the Abu Dhabi Securities Exchange listed company said that its underlying EBITDA was Dhs793m with a net profit of Dhs511m.

Its revenue for H1 2020 stood at Dhs7.95bn, down 22.6 per cent from Dhs10.27bn in H1 2019.

The company added that its liquidity stood at Dhs5.2bn. Of this, Dhs2.4bn was available in cash and cash equivalents, while Dhs2.8bn was in the form of unutilised credit facility.

As the lockdown restrictions eased over the last few weeks in the country, it said that its retail fuel volumes for July 2020 were 90 per cent of volumes in the same period last year.

“We have seen fuel volumes recover in line with the easing of movement restrictions. We have maintained our smart growth strategy to expand our domestic footprint and ensure our network has a wider reach across the Emirates, particularly in the heart of neighborhood communities, which previously did not have convenient access to refueling services,” said Ahmed Al Shamsi, acting CEO of ADNOC Distribution.

The company opened 25 new stations in H1, including 18 in Q2.

It expects to deliver 50-60 new stations this year, which includes 20-25 stations in Dubai.

Following the announcement of its new ‘On-the-go’ community station concept in November 2019, 17 new ‘On-the-go’ stations were brought into operation in H1 2020, with more coming soon.

Read: ADNOC Distribution launches 5 new on-the-go stations in Abu Dhabi in May

Through its c-store revitalisation programme, 11 c-stores were revitalised in H1 2020, 10 of which were successfully refurbished in Q2 2020. A total of 40-50 stores will be refurbished this year.

During its general assembly meeting in March 2020, the company announced an amendment to its dividend policy for 2021 onwards, setting a Dhs2.57bn dividend for 2021 and a dividend equal to at least 75 per cent of distributable profits from 2022 onwards.

Fuel prices in the UAE, as of August, have remained the same for five consecutive months.

Also read: UAE announces fuel prices for August 2020