Adnoc Distribution profit hits Dh1.72 billion
Adnoc Distribution, the UAE's largest fuel and convenience retailer, announced a 2.3 per cent rise in net profit to Dh1.72 billion in first nine months of 2019, driven by higher volumes and improved cost efficiencies.
The company said in a statement that underlying Ebitda (earnings before interest, tax, depreciation and amortisation), excluding inventory gains for the third quarter of 2019 grew 10 per cent to Dh698 million compared to the third quarter of 2018 while net profit for the quarter was Dh549 million a slight decrease of 1.7 per cent compared to the same 2018 period.
Total fuel volumes sold rose 3.9 per cent in the third quarter compared to the year-ago period, driven by improvements in the core retail markets of Abu Dhabi and the Northern Emirates, as well as contributions from new stations in Dubai and growth in commercial volumes.
Saeed Mubarak Al Rashdi, Adnoc Distribution's acting CEO, said the profitable growth was supported by an increase in fuel volumes sold, an enhanced convenience store experience and improved quality of service. "Looking ahead, we are focused on the acceleration of our domestic network expansion, particularly in the Dubai market, and the growth of our non-fuel business."
He said the company's recent marketing campaign offering free assisted fuelling has proven to be a success, both in terms of generating an increase in retail fuel volumes in the third quarter of 2019 for the first time since the IPO, and in better understanding customers' requirements.
"This, in conjunction with feedback from extensive customer engagement, has resulted in the decision of the board of directors to approve offering free assisted fuelling to all our customers, which we will implement beginning this Sunday, November 3. We trust this will be very well received by our customers as well as our investors as it will facilitate and strengthen our ambitious network expansion and volume growth targets. As a result of cost reductions and other initiatives, we do not expect this to have an impact on our profitability or dividend policy," said Al Rashdi.