ADNOC Distribution reports 55% rise in Q3 profit

Fuel stations operator ADNOC Distribution reported a 55 per cent rise in third quarter profit on Thursday linked to cost efficiencies and higher footfall.

Net profit for the quarter stood at Dhs558m ($152m) from Dhs360m in the third quarter of 2017.

Revenue also increased 24 per cent to Dhs5.9bn ($1.6bn).

ADNOC Distribution said its convenience stores generated higher revenues due to increased footfall and conversion rates in the third quarter.

“We have made significant progress across all three pillars of our strategy – fuel, non-fuel and cost-efficiency initiatives. I am pleased that our commitment to improve our customer experience by offering customers choice, convenience and better-quality products and services while also focusing on improving our financial performance has generated positive momentum and has led to the strong results we are announcing today,” said ADNOC Distribution acting CEO Mubarak Al Rashdi.

“While we are continuing to strengthen our competitive positioning, we remain committed to our shareholders by pursuing our ambition to transform the company into a more performance-driven, commercially minded business and through our disciplined, return-driven capital allocation strategy.”

The company introduced self service refuelling in Abu Dhabi earlier this year, with customers paying Dhs10 to have their cars filled by an attendant.

Last month, it also rolled out the scheme at stations in the Northern Emirates.

Read: UAE’s ADNOC says ‘self serve or pay’ fuel stations coming to Northern Emirates this month

Profit for the first nine months of the year increased 28 per cent to Dhs1.68bn ($457.3m) despite a 2.3 per cent decrease in fuel volumes sold compared to the same period of 2017.

The company, which raised $851m in a 10 per cent listing last December, revealed plans to open its first locations in Dubai and Saudi Arabia earlier this year as part of a 13-station expansion.

Read: UAE’s ADNOC Distribution plans Dubai, Saudi expansion