Net profit rises for Adnoc Distribution
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.