Adnoc Distribution on Wednesday said its first-quarter 2019 net profit increased 6.6 per cent to Dh578 million as compared to same period last year and plans to invest more than Dh1 billion in capital expenditure this year.

dubai — Adnoc Distribution on Wednesday said its first-quarter 2019 net profit increased 6.6 per cent to Dh578 million as compared to same period last year and plans to invest more than Dh1 billion in capital expenditure this year.

Its Q1 2019 earnings per share increased to Dh0.046 from Dh0.043. The UAE’s largest fuel retailer said its revenues fell 7.5 per cent to Dh4.77 billion as compared to Dh5.159 billion for Q1 last year, driven by lower pump prices as a result of lower oil prices.

Its Q1 2019 gross profit totalled Dh1.146 billion, a 3.3 per cent decrease compared to Q1 2018 gross profit of Dh1.184 billion.

“Adnoc Distribution has once again demonstrated its ability to realise profitable long-term growth, driven by greater fuel offerings and service, an enhanced convenience store experience and improved quality of service,” said Saeed Mubarak Al Rashdi, Acting CEO of Adnoc Distribution.

Its Q1 2019 underlying Ebitda grew by 16.5 per cent to Dh733 million compared to Q1 2018.

It added three new retail fuel stations in the last quarter, reaching 379 in total. While convenience store network reached 252, including 14 Géant Express convenience stores, as of March 31, 2019.

“We continue to achieve good progress in managing our cost base as Q1 2019 distribution and administrative expenses were Dh592 million, a 9.8 per cent decrease compared to Q1 2018 distribution and administrative expenses of Dh657 million,” the UAE’s largest fuel operator said in a statement posted on Abu Dhabi Securities Exchange, where it is listed.

Its fuel retail sales fell two per cent year-on-year to 1.607 million litres as compared to 1,640 million litres in Q1 2018. While its retail revenues also fell 12.2 per cent year-on-year to Dh3.2 billion at the end of March 31, 2019 as compared to Dh3.645 billion for the same quarter last year.

“In 2019, we expect to invest up to $300 million (Dh1.1 billion) in capital expenditures to boost our network expansion in the UAE (especially in Dubai) and internationally, and to invest in our digital initiatives,” it said in its quarterly report.