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ADNOC Distribution announces record earnings for first nine months of 2022

November 12, 2022
oil and gas

ABU DHABI, 11th November, 2022 (WAM) -- ADNOC Distribution on Friday today reported that its EBITDA rose by 26% year-on-year to AED2.86 billion, and net profit up by 39% year-on-year to AED2.33 billion for the first nine months of 2022. For the third quarter, EBITDA rose by 18% year-on-year to AED868 million, while net profit increased by 45% year-on-year to AED767 million.

With the record nine-month results, ADNOC Distribution’s growth momentum is expected to continue through the fourth quarter and beyond, on the back of volumes growth, domestic and international expansion and higher non-fuel retail contribution.

The company saw a year-on-year rise of 7% in total fuel volumes over the first nine months of 2022, on the back of the UAE’s continued economic growth, increased traffic at service stations, and substantial increases in corporate fuel volumes, which rose 27% year-on-year over this period.

In addition, ADNOC Distribution has continued to see incremental volumes from its Dubai stations, with a total of 37 sites now in operation in the emirate and a total network of 481 stations across the UAE as of 30 September 2022.

The company’s non-fuel business continued to show strong growth over the first nine months of 2022, with an 18% increase in non-fuel transactions. Non-fuel gross profit also increased by 9%, driven by customer-centric initiatives, higher traffic at stations and higher F&B sales, alongside attractive promotions via the ADNOC Rewards program.

During the first nine months of 2022, ADNOC Distribution continued to deliver modern, digitally-enabled fuel retail convenience to customers and communities across the UAE, with the opening of 21 new stations in the country, nine of which opened in the third quarter, including a state-of-the-art flagship location on Shaikh Zayed Road, in the heart of Dubai.

C-store sales continued to gain momentum during the third quarter due to the company’s commitment to its non-fuel retail strategy and increasing popularity of its specialty-grade coffee.

The first nine months of the year also saw ADNOC Distribution further advance its international expansion by partnering with TotalEnergies, announcing a milestone transaction to acquire a 50% stake in TotalEnergies Marketing Egypt, one of the top four fuel retail operators in Egypt. The acquisition aligns with the company’s vision to establish ADNOC Distribution as a regional fuel distribution leader. The acquisition is expected to be completed in Q1 2023 pending satisfaction of certain conditions, including customary regulatory approvals.

CEO of ADNOC Distribution Bader Saeed Al Lamki said, “I’m pleased with our strong financial and operational performance. We have continued to demonstrate our growth trajectory and maintained a robust cash generation with a strong balance sheet.

Meanwhile, the opening of our flagship service station in Dubai, has not only showcased our cutting-edge digital customer experience, but also reiterated our commitment to long-term sustainable growth and generating attractive shareholder returns.”

The past quarter has seen ADNOC Distribution engage in several initiatives aimed at both futureproofing the business and moving the company closer to achieving its long-term sustainable business ambition.

ADNOC Distribution’s state-of-the-art flagship service station is a showcase of the company’s digital-led customer experience which includes smart cameras and digital screens at the pump – to deliver a personalized, digitally immersive, and seamless customer journey.

The station also offers impressive sustainability credentials, being partially powered by renewable sources. It also includes the first double-storey ADNOC Oasis convenience store.

ADNOC Distribution’s 2022 dividend policy is set at a minimum of AED2.57 billion, offering an annual dividend yield of 4.6% (at a share price of 4.47 as of 10 November 2022).

The company paid a dividend of AED1.285 billion for the first six-month of 2022 (10.285 fils per share) in October, and expects to pay the second six-month dividend of 2022 (10.285 fils per share) in April 2023, subject to the discretion of the board and shareholders’ approval. The company’s dividend policy for the years thereafter sets a dividend equal to at least 75% of distributable profits.

wam

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