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ADNOC Distribution announced a basic profit before interest, tax, depreciation and amortization of AED 2.86 billion, an increase of 26% year-on-year, and a net profit increase of 39% year-on-year; Net profit amounted to AED 2.33 billion in the first nine months of 2022. During the third quarter, EBITDA increased by 18% year-on-year to AED 868 million, while net profit reached AED 767 million, an increase of 45% on an annual basis.
Based on the record results for the first nine months of the year, ADNOC Distribution is expected to continue its growth pace in the fourth quarter of this year and beyond, supported by higher quantities of fuel sold, the company’s expansion in the local and international markets, and higher profit margins in the non-fuel sales segment.
Continuous growth in the company’s business
The company recorded an annual increase of 7% in the total quantities of fuel sold during the first nine months of 2022; This is against the background of the country’s continuous economic growth, the increase in shopping traffic at service stations, and the increase in corporate fuel sales by 27% year on year during this period.
In addition, ADNOC Distribution witnessed an increase in the quantities of fuel sold at its stations in the Emirate of Dubai; The company now operates 37 service stations in the emirate. ADNOC Distribution operates 481 service stations across the UAE; As of September 30, 2022.
The non-fuel retail sector recorded strong growth during the first nine months of the year; As non-fuel transactions increased by 18%, and the total profit of the non-fuel related retail sales sector increased by 9%, this was helped by customer-focused initiatives, the increase in shopping traffic at service stations, in addition to the launch of attractive promotional campaigns through the “ADNOC Rewards” program. .
Continuing the path of smart growth
During the first nine months of 2022, ADNOC Distribution continued to provide digital and modern refueling and shopping services to its customers and the local areas it serves; As it opened 21 new service stations in the UAE, including 9 stations during the third quarter of the year, including a distinguished station that was built according to the latest international standards located on Sheikh Zayed Road in the center of the Emirate of Dubai.
Retail sales continued to gain momentum in the third quarter as a result of the company’s commitment to the non-fuel retail strategy, in addition to the strong appetite for ADNOC’s exclusive coffee products.
The first nine months of the year also witnessed the expansion of ADNOC Distribution globally by entering into a partnership agreement with Total Energy; It announced the largest investment deal in its history to acquire a 50% stake in the business portfolio of Total Energy Marketing, Egypt, one of the four largest fuel distribution companies in Egypt. This acquisition comes as part of the company’s vision to consolidate its leading position in the regional fuel distribution sector. The acquisition is expected to be completed during the first quarter of 2023; The agreement is subject to the fulfillment of certain conditions, including approvals from the relevant regulatory authorities.
strong financial performance
Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “I am pleased to announce that the company has recorded strong financial and operational performance, and maintained a positive growth path with significant cash flows and a strong balance sheet.
We have also opened a distinctive station in a strategic location on Sheikh Zayed Road in Dubai to showcase our digital services that rely on the latest technology applications to ensure a unique shopping experience for our customers, and to confirm our commitment to sustainable growth and achieving attractive returns for shareholders in the long term.
Generous returns for shareholders
The company’s dividend policy for 2022 stipulates a dividend of at least 2.57 billion dirhams, providing a profit return of 4.6% (based on the share price of 4.47 dirhams as on November 10, 2022).
The company had distributed a dividend of 1.285 billion dirhams (10,285 fils per share) for the first half of 2022; It was paid in October. The second part of the dividends for 2022 is expected to be paid in April 2023; This is at the discretion of the company’s board of directors and the approval of the shareholders. For subsequent years, the dividend distribution policy stipulates a dividend of no less than 75% of the distributable profits.
