Adnoc Distribution nine-month net profit rises 6%

Adnoc Distribution’s net profit for the first nine months of the year rose more than 6 per cent to reach Dh1.68 billion ($457.8 million) thanks to the recovery of fuel volumes amid ongoing post-pandemic growth in the UAE.

Revenue for the ninemonth period ending in September rose about 23 per cent to Dh14.7bn.

The company credited its overall performance during the first nine months to the recovery in fuel volumes in September, which rose more than 6 per cent compared with the same period last year. This was driven by an increase in retail fuel volumes.

The ease in travel restrictions, as well as widespread Covid-19 vaccination efforts across the country and the reopening of schools and offices, also made a significant contribution.

“We maintain a robust balance sheet and continue to bring new innovations to the market, which demonstrate exceptional customer experience,” said Bader Al Lamki, chief executive at Adnoc Distribution.

“Looking ahead, we expect our growth trend to accelerate driven by strengthening economic recovery and an increase in visitors heading into [the] holiday season, Expo 2020 and a number of sporting events being hosted by the UAE.

“The green shoots of recovery are here and accelerated growth is clear to see.”

However, the UAE’s largest fuel retailer’s third-quarter net profit declined 21 per cent to reach Dh529m compared with the same period last year before the vaccination introduction and easing of global travel restrictions.

Revenue for the threemonth period rose 34 per cent to reach Dh5.4bn.

Adnoc Distribution has a total network of 459 fuel stations across the UAE as of the end of September, with 31 stations in Dubai contributing to incremental volumes.

The company has also received clearance to acquire 35 stations in Saudi Arabia, with 10 new stations added this week. It is set to open up to 45 stations in the kingdom this year.

In May, Adnoc Distribution joined the MSCI Emerging Markets index, which is tracked by funds with assets that are worth billions of dollars.

The company was also included in the FTSE Emerging Markets Index in September.

The FTSE Emerging Markets Index is an international equity index that tracks stocks from emerging markets globally and includes large and mid-cap securities.

Adnoc Distribution joins nine other UAE companies that are already part of the index.