Media ININ Economy We Trust
08-05-2019 Media in\ Abu Dhabi
ADNOC Distribution will review its investment strategy, future vision for revenue driven growth and the new upward trend in profit distribution during the Capital Markets Days Conference, which opened in London today and today in New York to a large number of international investors and conference participants.
The conference was hosted by the company for the first time in response to international investors’ interest in recognizing the strong financial performance of the company and its new upward trending policy to distribute profits and its ability to invest for future growth. Eng. Saeed Mubarak Al Rashdi, Acting CEO of ADNOC Distribution, John Carey, Chief Financial Officer.
The company explained to the international investors participating in the conference its ambitious growth strategy, aiming to achieve EBITDA of more than $ 1 billion by 2023 while continuing its growth path in 2019.
The company also reviewed the successful implementation of its commitments during the initial offering of its shares including an increase in EBITDA of 22% year on year, rising from USD 621 million in 2017 to US $ 755 million in 2018 In addition to the continued growth to the highest level in terms of fuel and non-fuel operations by accelerating the expansion of the UAE in general and especially in Dubai, the company intends to open 10 stations in 2019 and also aims to open more stations in a similar number annually in Dubai until the year2023.
The company expects the non-fuel sector to continue to contribute to its profitability through the revitalization program of its stores, the opening of more Gian fast service stores, and the branches of the Oasis Cafe, which offers coffee and bakery products. ADNOC distributes 381 service stations and 260 retail stores, 14 Jian shop for express service.
The company continues to implement the cost-cutting program, which is expected to contribute to higher management margins with the aim of achieving additional savings of $ 100-150 million by 2023, as well as the company’s success in providing more than $ 50 million in costs in 2018.
ADNOC Distribution anticipates further growth in its oil operations in the UAE and globally, as well as the expansion of retail operations related to fuel and non-fuel products in new geographical areas such as Saudi Arabia.
Eng. Saeed Mubarak Al Rashidi said that ADNOC Distribution’s business continues to grow as a leading provider of fuel and retail in the UAE.
“The company has made significant progress on the three main thrusts of its fuel and non-fuel products and cost reduction strategy. The Capital Market Days offer highlights the company’s most important achievements since its initial public offering and talk about the company’s strategy and details of how to achieve those goals. Through a carefully planned expansion plan, including the company’s commitment to a disciplined and revenue-driven investment strategy. ”
The new profit distribution policy reflects the balance between the sustainable dividend distribution of shareholders while maintaining the company’s ability to invest and achieve further growth in the future, further supporting the company’s additional capabilities.
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