Adnoc Distribution reports Dh1.56 billion net profit in H1

Adnoc Distribution on Monday reported a strong first half results for 2022, recording an EBITDA of Dh1.99 billion and net profits of Dh1.56 billion.

The Abu Dhabi-listed company said it witnessed year-on-year growth in total fuel volumes, up nine per cent in January-June 2022 compared to same period last year, while the company’s corporate fuel volumes recorded sustained growth with a 27 per cent year-on-year increase, underpinned by the UAE’s economic growth and driven by the new corporate fuel sales agreements confirmed last year.

The company’s non-fuel business also continued to see momentum with customer-centric initiatives, increased traffic at stations, and higher food and beverage sales, resulting in a 10 per cent increase in gross profit for H1 2022 compared to the same period in 2021.

Adnoc Distribution accelerated delivering on its growth strategy throughout H1 2022, with the opening of 12 new stations in the UAE, of which four in Dubai, taking its domestic network to 472 (Dubai: 35 stations).

In the Kingdom of Saudi Arabia, the company added 26 new stations in the first half of the year, taking its network in the Kingdom to 66. The company’s total network stands at 538 stations (as of June 30, 2022), and it remains on track to deliver its target of 60-80 new sites in 2022.

In addition, Adnoc Distribution saw the progression of its store refurbishment programme, with 5 Adnoc Oasis stores renovated in the first six months of the year. The newly refurbished stores feature fresh food, barista-brewed coffee and a wider menu selection, contributing to a year-on-year increase in gross profit from non-fuel activities.

In H1 2022, the total number of export network countries of Adnoc Distribution’s Voyager lubricants portfolio also rose to 21 markets worldwide. The company also launched the Adnoc Voyager green series, an alternative 100 per cent plant-based lubricant range for petrol and diesel engines.

Adnoc Distribution further advanced its international expansion by partnering with TotalEnergies, announcing its milestone transaction to acquire a 50 per cent stake in TotalEnergies Marketing Egypt, one of the top four fuel retail operators in Egypt, for approximately Dh683 million ($185.9 million), with an additional earn-out of up to Dh63.5 ($17.3 million) (if certain conditions are satisfied). 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.

“In the first half of 2022, we have maintained a strong financial and operational performance while integrating cutting-edge solutions to our customer-focused offerings. We have demonstrated a healthy performance, with consistent growth and a strong balance sheet to support further growth investments and to sustain attractive capital distribution to our shareholders,"Eng. Bader Saeed Al Lamki, CEO of Adnoc Distribution, said.

— muzaffarrizvii@khaleejtimes.com