EV charging points set to double, says Adnoc Distribution

Adnoc Distribution said its profit in the first quarter of the year increased by 2.3% on an annual basis

Adnoc Distribution, the UAE’s largest fuel and convenience retailer, plans to more than double its network of electric vehicle charging points by the end of this year.

The Adnoc subsidiary expects to install 150 to 200 charging stations by the end of 2024, compared with 89 in the first quarter, the company said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

The UAE plans to increase the share of electric and hybrid vehicles on the roads to 50 per cent by 2050 from about 1 per cent currently.

“We are definitely working on enabling the uptake of EVs as one of the sustainable mobility solutions,” Bader Al Lamki, chief executive of Adnoc Distribution, told The National.

“We have the expertise and we have the network [as well as the] infrastructure.”

Globally, EV sales are projected to slow this year as car manufacturers and suppliers grapple with a global downturn that has resulted in bankruptcies, cancelled initial public offerings and reduced production.

Electric car sales are projected to increase by about 21 per cent to 17 million this year, down from the 35 per cent expansion recorded last year, the International Energy Agency said last month.

Adnoc Distribution said its first-quarter profit increased by 2.3 per cent on an annual basis, despite a Dh58 million ($15.79 million) UAE corporate income tax bill.

Last year, the Emirates introduced a 9 per cent corporate tax, marking a significant policy change and a step towards complying with international standards.

Net income attributable to equity holders of Adnoc Distribution for the three months to the end of March rose to about Dh550 million.

Revenue for the reporting period climbed by more than 9 per cent annually to Dh8.75 billion. Fuel volumes sold in the UAE and Saudi Arabia rose 9.3 per cent annually.

Adnoc Distribution recorded a 17.3 per cent annual increase in fuel volumes sold, with retail volumes up by nearly 18 per cent and commercial volumes up by 16.3 per cent, the company said.

It added eight new stations in the UAE, Saudi Arabia and Egypt in the first quarter and is “on track” to open 15 to 20 new stations this year, the company said.

It opened four new stations in the UAE, bringing its tally to 532, up 5 per cent on an annual basis.