Adnoc Distribution announces Dhs671m profit for Q1 of 2022
Adnoc Distribution on Tuesday reported strong first-quarter 2022 results, recording a 7.8 per cent year-on-year increase in Ebitda to Dhs881 million with a 6.3 per cent year-on-year increase in net profit to Dhs671 million for the quarter, while cash flow generation remained strong with free cash flow of Dhs1.9 billion.
The company has seen a strong recovery in total fuel volumes compared to the first quarter of 2021, with an increase of 11 per cent year-on-year.
In addition, corporate fuel volumes witnessed strong growth with a 19 per cent year-on-year increase, partially driven by the signing of new sales agreements confirmed in the final quarter of 2021. Non-fuel retail gross profit grew 11 per cent compared with the same period in 2021, with a 20 per cent increase in non-fuel transactions across the UAE.
Adnoc Distribution continued to increase its footprint throughout the first quarter of the year, delivering local and international network expansion and bringing its network total to more than 500 across all geographies. In Saudi Arabia, the company added 15 new stations, increasing its network to a total of 55 stations.
In the UAE, the company opened three new stations, taking its total domestic network to 464. Adnoc Distribution remains on track to deliver 20-30 new sites in the UAE before the end of 2022.
In addition to the continued expansion of its service network, Adnoc Voyager lubricants maintained strong momentum in its international expansion through the first quarter, bringing its export network to a total of 20 countries. The company also expanded its product offering with the launch of the Adnoc Voyager Green Series, which offers customers a 100 per cent plant-based lubricant range for petrol and diesel engines.
CEO of Adnoc Distribution Bader Saeed Al Lamki said, “Adnoc Distribution has had a positive start to 2022. We must stay relevant and deliver on our customers’ desire for continued convenience while ensuring we remain focused on the future, creating solutions that are evolving in response to changing market dynamics.
“Our network expansion has maintained strong momentum throughout the year’s first quarter. This can be seen particularly in Saudi Arabia, where we have grown our service station network by 40 per cent. We are well on track to deliver 60-80 stations across the UAE and international markets by the end of this year. We have already marked a number of milestones in the first quarter, with the opening of 18 new service stations across the UAE and KSA and the launching of new products and enhancing of services, with progress set to continue and accelerate throughout the year.”
The increased foofall across the network has also been supported by consistent marketing and customer loyalty campaigns, with promotions, delivered in-store and through the Adnoc Rewards programme. In the first quarter, a series of promotions were launched in Adnoc Oasis stores, car wash, and lube change.
The Adnoc Rewards loyalty programme also continued to add members in the first quarter of 2022, with more than 1.3 million members now enrolled and 83 partners providing discounts and deals through the Adnoc Distribution app. The programme has been expanded to include a fuel redemption option, whereby customers can pay for their fuel with their Adnoc Rewards points.
ADNOC DRILLING: Adnoc Drilling Company today announced its financial results for the three-month period ended 31st March, 2022, reporting significant revenue growth for the period, increasing to $601 million, up 14.9 per cent on the same period last year. Year-onyear revenue growth was delivered across all business segments, with the Company firmly on track to deliver on its ambitious plans.
The Company’s revenue increased due to new rigs joining the fleet, with the owned rig fleet reaching 104 as new Helmerich & Payne Flexrigs commenced operations. The first quarter also saw continued growth in the Oilfield Services (OFS) business, with a healthy market share. Ebitda in Q1 2022 increased to a robust $280 million, a margin of 46.6 per cent, as the company also continued to make solid progress in delivering cost efficiencies. Net profit for the first quarter increased substantially, by 59.1 per cent year-on-year to $175 million.
Abdulrahman Abdullah Al Seiari, Chief Executive Officer of Adnoc Drilling, commented, “I am very pleased with Adnoc Drilling’s performance in the first three months of 2022, where we reported strong and sustained revenue and earnings growth, increased our fleet to 104 owned rigs and were included in ADX’S new FADX 15 Index, underpinning the importance and atractiveness of Adnoc Drilling as a key constituent of Abu Dhabi’s capital market and the region’s drilling leader focused on achieving atractive shareholder returns.”
The company has seen a strong recovery in total fuel volumes compared to the first quarter of 2021, with an increase of 11% year-on-year