Adnoc Distribution posts Dhs2.4b profit
ABU DHABI: Adnoc Distribution on Monday reported that its net profit for the fourth quarter of 2020 grew to Dhs851 million, with underlying EBITDA (EBITDA excluding one-offs and inventory gains/losses) of Dhs1.1 billion. For the year 2020, net profit was Dhs2.4 billion, while underlying EBITDA stood at Dhs3.6 billion.
Adnoc Distribution has maintained a strong balance sheet as of December 31, 2020, and remained well-positioned to expand both its domestic and international porfolio in-line with its smart growth strategy, as well as meet its dividend commitments.
As of December 31, 2020, the company’s liquidity was at Dhs5.6 billion in the form of Dhs2.8 billion in cash and cash equivalents and Dhs2.8 billion in unutilised credit facilities.
Following a 24 per cent quarter-on-quarter increase in total fuel volumes in Q3 2020, volumes for the fourth quarter of 2020 increased 2 per cent compared to the third quarter of 2020.
In addition to its growth in the UAE, international expansion was accelerated with the announcement that the company had signed a definitive agreement on December 30, 2020, to acquire 15 service stations in the Kingdom of Saudi Arabia. The acquisition is subject to certain conditions (including obtaining regulatory approvals) and stems from Adnoc Distribution’s long-term smart growth strategy.
This transaction has been quickly followed by the announcement today of the execution of two further definitive agreements to acquire a total of 20 stations in KSA, which transactions are subject to certain conditions (including obtaining regulatory approvals).
The two transactions consist of 20 service stations in the Eastern, Central and Riyadh Provinces of KSA with a total purchase consideration of up to Dhs56.9 million ($15.5 million). The new transactions will bring the company’s total network to 37 stations.