ADNOC Distribution reports 39% rise in nine-month net profit

UAE-based fuel and convenience retailer ADNOC Distribution has reported a 39 per cent rise in net profit equalling Dhs2.33bn for the first nine months of 2022. It rose 45 per cent year-on-year in Q3 to reach Dhs767m.

Its EBITDA rose 26 per cent to total Dhs2.86bn for the first nine months of the year and amounted to Dhs868m for Q3, marking a 18 per cent rise.

The company said that it witnessed a 7 per cent year-on-year rise in total fuel volumes over the first nine months of 2022, on the back of the UAE’s economic growth, increased traffic at service stations, and substantial increases in corporate fuel volumes.

A total of 37 sites are now in operation across Dubai, while its nationwide network consists of 481 stations, as of September 30, 2022. The company also noted a 18 per cent increase in non-fuel transactions for Q1-Q3. Non-fuel gross profit also rose 9 per cent, driven by initiatives, higher traffic at stations and higher F&B sales, the statement added.

During the first nine months of 2022, ADNOC Distribution opened 21 new stations in the country, nine of which opened in the third quarter. The company also advanced its international expansion, announcing a transaction to acquire a 50 per cent stake in TotalEnergies Marketing Egypt. 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

“I’m pleased with our strong financial and operational performance. We have continued to demonstrate our growth trajectory, and maintained a robust cash generation with a strong balance sheet. Meanwhile, the opening of our flagship service station in Dubai, has not only showcased our cutting-edge digital customer experience, but also reiterated our commitment to long-term sustainable growth and generating attractive shareholder returns,” said Bader Saeed Al Lamki, CEO, ADNOC Distribution.

ADNOC Distribution’s 2022 dividend policy is set at a minimum of Dhs2.57bn. The company paid a dividend of Dhs1.285bn for the first six-month of 2022 in October, and expects to pay the second six-month dividend of the year in April 2023, subject to the discretion of the board and shareholders’ approval.

Read: Abu Dhabi’s ADNOC Distribution approves $350m interim cash dividend for H1 2022