ADNOC Distribution announces a five-year expansion plan within and outside the country

12-05-2019 Media iN\ New York
Saeed Mubarak Al Rashidi, Acting CEO of ADNOC Distribution, announced that the company intends to expand its business and investment services in all emirates, especially in Dubai, which currently serves only four stations. A new station equivalent to the establishment of 15 additional stations per year.
He pointed to the Board of Directors’ decision to open three additional new plants in Saudi Arabia and two stations completed there in 2018. The decision follows the success of the two plants in the Kingdom in selling fuel only, ie achieving an increase in their profits Up to more than 30% after the ADNOC trademark.
In his exclusive remarks on the sidelines of the New York Stock Exchange conference in the United States, he noted the company’s significant activity in the Saudi market, which will later include expansion in the fuel and services sectors, such as lubricants, car washing, restaurants and others.
The CEO of ADNOC Distribution said that the company’s business continued to grow as a result of its leading position as the UAE’s leading fuel and retail provider, providing a profit margin of 10 cents per liter of fuel since Which is a good rate under the global scale.
He predicted that the company will continue to achieve further growth in the level of oil operations both inside and outside the country, and expansion of retail operations related to fuel and non-fuel products in other new geographical areas besides Saudi Arabia, and pledged this expansion by providing specific standards.
“In the context of our future plans, we will explore and explore the possibility of investing in other markets outside the UAE. Each investment will meet the required criteria, including a minimum gross profit return of 15% of the original investment value.”
He reiterated that the expansion of the company’s activities in the sector and other business services sector will be mainly after the UAE market, the Gulf region, and then the company will start a gradual expansion of its investment operations in neighboring regions, as some Asian countries such as India in the oil sector, The neighboring African regions, such as Egypt in the field of fuel sales, provided that these areas meet the criteria to achieve the margin of minimum profit set for the company.
Al Rashedi expressed his satisfaction with the success of the “Days of Capital Markets” conference organized by the company for the first time in London and New York respectively, with the participation of a large number of international investors and economic officials to demonstrate their strong financial performance and the new upward trend , And its future plans for growth and careful consideration at both productive and investment levels.
“We have achieved positive results through this conference, which is aimed primarily at clearly identifying investors and participants with the company’s investment strategy, vision and five-year growth plan aimed at achieving more than EBITDA of more than $ 1 billion By 2023, as well as their introduction of the company’s new upward dividend policy. ”
Al Rashidi pointed out that the company has adopted a new policy based on the balance between the distribution of profits in a progressive and sustainable manner to the shareholders while maintaining the company’s ability to invest and achieve further future growth, which supports the additional capabilities of the company. Significantly.
The company is expected to continue to achieve more profits in the coming years, both in terms of revenues from its fuel sector and in the non-fuel sector, which focuses on the expansion and development of the services sector, such as its stores, .
The company’s delegation was represented at the Capital Markets Days Conference in London and New York, under the chairmanship of Mr. Saeed Mubarak Al Rashdi, Acting CEO, John Carey, Vice Chairman, and Peter Bentti, CFO of the company.