Adnoc unit posts 12% rise in profit

STRONG PERFORMANCE FROM FUEL AND NON-FUEL RETAIL BUSINESS LIFTS RESULTS

Adnoc Distribution posted a 12 per cent increase in net profit for the first quarter of 2018 due to strong performance from its fuel as well as non-fuel retail business, the company said yesterday.

The company’s net profit was Dh542.2 million for the first quarter of 2018 compared to Dh483.6 million during the same period last year.

Revenues of the company in the first quarter reached Dh5.15 billion against Dh4.58 billion in the first quarter of 2017.

“Adnoc Distribution’s first quarter results illustrate a company that is financially strong and has laid a solid foundation for further growth, with its fuel, non-fuel and cost-efficiency initiatives,” Adnoc Distribution’s Acting CEO, Saeed Mubarak Al Rashdi, said in a statement.

“A strong and profitable Adnoc Distribution is good for shareholders, but it’s also good for customers and the UAE as it allows the company to continue investing in critical infrastructure, technology and human capital that supports the country’s development.”

The total fuel volumes sold in the first quarter reached 2.3 billion litres, up 0.9 per cent from the same period last year. In its non-fuel retail business, gross profit increased by 37.1 per cent, while average basket size, which measures the average amount each customer spent in the company’s convenience stores, rose by 12.5 per cent.

Adnoc Distribution, the fuel and retail arm of Abu Dhabi National Oil Company (Adnoc), was listed on Abu Dhabi Securities Exchange last December 13 with the stock opening at Dh2.90 compared to the final IPO price of Dh2.50, a 16 per cent increase.

IPO

The company raised Dh3.1 billion after it offered 10 per cent of its shares through an initial public offering (IPO).

It has 362 retail fuel stations and 238 convenient stores across the UAE.

The company plans to open one service station in Saudi Arabia in 2018 as part of its growth strategy.

Adnoc Distribution’s Deputy CEO, John Carey, commented: “Our financial performance in the first quarter was strong, despite some marketwide headwinds, with increases in Ebitda and net profit. This provides us with a solid foundation to continue transforming our business and delivering against our growth strategy.”

Adnoc Flex with a self service option will be rolled out throughout the UAE in the second and third quarters this year.