Net profit rises for Ad­noc Dis­tri­bu­tion

The National - News - - THE BIG PICTURE - THE NA­TIONAL

Ad­noc Dis­tri­bu­tion, the UAE’s big­gest fuel and con­ve­nience re­tailer, re­ported a 2.3 per cent rise in nine-month net profit, and re­it­er­ated that the full-year div­i­dend will be 62 per cent more than the pre­vi­ous year, the com­pany said.

Net profit for the pe­riod end­ing Septem­ber 30 rose to Dh1.72 bil­lion from a year ear­lier, the com­pany said in a reg­u­la­tory fil­ing to the Abu Dhabi Se­cu­ri­ties Ex­change, where its shares trade. Un­der­ly­ing ebitda, ex­clud­ing in­ven­tory gains for the same pe­riod, grew 10.6 per cent to Dh2.06bn.

“We have de­liv­ered strong re­sults in the third quar­ter as well as the first nine months of 2019 and have demon­strated our abil­ity to re­alise prof­itable growth, sup­ported by an in­crease in fuel vol­umes sold, an en­hanced con­ve­nience store ex­pe­ri­ence and im­proved qual­ity of ser­vice,” said act­ing chief ex­ec­u­tive Saeed Al Rashdi.

The com­pany “con­tin­ues to fo­cus on re­al­is­ing cost ef­fi­cien­cies, in­clud­ing across its sup­ply chain and lo­gis­tics op­er­a­tions, which has con­trib­uted to a 9.3 per cent re­duc­tion in like-for-like op­er­at­ing ex­penses for the first nine months of 2019 com­pared to the same pe­riod last year,” he added.

Third-quar­ter net profit de­clined 1.7 per cent owing to the ab­sence of non-op­er­a­tional in­ven­tory gains a year ear­lier. Over­all fuel vol­umes in­creased for the first three months by 3.9 per cent, which Ad­noc Dis­tri­bu­tion said was driven thanks to im­prove­ments in core mar­kets such as Abu Dhabi and the North­ern Emi­rates.

In Au­gust, Ad­noc Dis­tri­bu­tion said it plans to en­ter the In­dian lu­bri­cants mar­ket by the third quar­ter. Lu­bri­cants have be­come a new mar­ket seg­ment for UAE fuel re­tail­ers, which have looked abroad to di­ver­sify away from sat­u­rated home mar­kets by tap­ping into high-growth de­mand cen­tres such as In­dia.

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