By Staff Reporter
Dubai: The fuel retailer ADNOC Distribution pumped out Dh1.84 billion as a 9-month net profit, up by 4.4%, on revenues of Dh26.6 billion, a year-on-year increase of 6.2%. The attributable net profit could have been over Dh2 billion if it were not for factoring in Dh183 million under corporate tax obligations.
In fact, the company had its highest-ever 9-month EBITDA of Dh2.90 billion. During these 9 months, it delivered 11 billion liters of fuel to its users, a gain of over 9%, as more service stations helped. So did the continued growth the UAE economy has been experiencing.
“We made steady progress expanding our domestic retail presence and market share, while also seeing growing returns from our international expansion (in Saudi Arabia and Egypt),” said Bader Saeed Al Lamki, CEO of ADNOC Distribution. “To continue to unlock shareholder value, the company is pursuing AI, advanced digital technologies, and innovation-enabled growth.”
Non-fuel retail services – through its F&B outlets at service stations, etc. – fetched Dh618 million, a 13% year-on-year increase. Here too, opening more stores and taking in tenants helped.
ADNOC Distribution had 855 locations by the end of September, including 543 in UAE and 69 in Saudi Arabia.
More non-fuel income coming in
The convenience store conversion rate hit 25.5% over the nine-month period, which is the highest ADNOC Distribution has had in five years. This is where the focus on expanding its premium F&B offerings and enhancing car services are doing their part. So is the optimizing of real estate to ‘strengthen the company’s position.
For H1-2024, the company paid Dh1.28 billion as a dividend this month, in alignment with the approved five-year policy whereby it pays Dh2.57 billion annually, equivalent to 20.57 fils per share, or a minimum of 75% of net profit, whichever is higher.
Its free cash flow position is, however, down 26.2% to Dh2.02 billion. The liquidity position was Dh6.2 billion, in the form of Dh3.4 billion in cash and cash equivalents and Dh2.8 billion as an unutilized credit facility.
Source: Gulf News
