Adnoc Distribution posts Dh400 million profit in first quarter

dubai — Adnoc Distribution, the leading UAE fuel retailer, announced on Tuesday a net profit of Dh400 million and an increase of 3.6 per cent in revenues to Dh4.93 million in the first quarter.

The company said the profit plunge by 30.9 per cent was consequent to a drop in business from Covid-19 lockdown that led to lower total fuel sales.

“Despite the unprecedented market conditions and the uncertainties ahead, Adnoc Distribution remains in a strong financial position and is well placed to navigate the challenges posed by the Covid-19 pandemic,” the company said in a statement.

Adnoc’s overall financial position remained solid, with liquidity at Dh8 billion in the form of Dh5.2 billion in cash and Dh2.8 billion in unutilised credit facility.

“The company continues to focus on ensuring the safety of its employees, customers and local communities as it responds to Covid-19 and, despite the challenging operating environment, remains resilient with a strong balance sheet, delivering on its smart growth strategy with seven new stations opened in Q1 2020,” said the statement.

Ahmed Al Shamsi, acting chief executive officer of Adnoc Distribution, said the company has shown strength and agility as a business in the first quarter. “We are especially thankful to our dedicated frontline colleagues who have played a vital role in this effort by providing a lifeline to communities around the country that rely on our services 24 hours a day to meet their essential fuel, food and grocery needs. In turn, we have taken and will continue to take, every step to ensure their health, safety and wellbeing.”

Jump in revenues to Dh4.93 million