Adnoc Distribution profits up 12.1% on higher fuel, convenience store sales
DUBAI — Adnoc Distribution, the UAE’s fuel and convenience retailer, on Wednesday said its net profit in the first-quarter of 2018 jumped 12.1 per cent to Dh542.2 million, thanks to increased sale of convenience stores and fuel amidst higher global oil prices.
Its gross profit for the period increased 14.3 per cent compared to the same period last year to Dh1.185 billion, while EBITDA grew 24.9 per cent to Dh702.8 million.
Its revenues in Q1 2018 totalled Dh5.15 billion, a rise of 12.6 per cent, primarily due to the increase in fuel prices resulting from increases in oil prices in 2018 compared to 2017. Revenue also increased in the first quarter of 2018 due to the 0.9 per cent increase in total fuel sales volume over the corresponding period of the prior year.
Saeed Mubarak Al Rashdi, acting CEO, Adnoc Distribution, said a strong and profitable Adnoc Distribution is good for customers as it allows the company to continue investing in critical infrastructure, technology and human capital that supports the country’s development.
“Our financial performance in the first quarter was strong, despite some market-wide 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,” said John Carey, Deputy CEO, Adnoc Distribution.
The quarterly results lifted the fuel retailer’s shares by 1.2 per cent to Dh2.5 on Wednesday.
The company’s operational performance remained strong, with total fuel volumes sold reaching 2.3 billion liters in the first quarter, 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.
The company sold less petrol in Q1 2018 but sold more diesel, aviation products and other fuels. It sold 1.446 billion litres of petrol in Q1 2018 as compared to 1.46 billion litres in the same quarter last year. while it sold 576.9 million litres of diesel as against 574.6m litres.
Distribution and administrative expenses for the first quarter of 2018 were Dh656.5 million, an increase of 11.5 per cent over the first quarter of 2017, mainly due to the impact of the operation of the civil aviation services business effective October 1, 2017 resulting from the Civil Aviation Supply Carve-out. Its staff costs to Dh412.4 million in Q1 2018 as against Dh445m for the same quarter last year. It operated 362 service stations and 238 convenience stores at the end of March 31, 2018.