AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, has said its Ports Cluster subsidiary will broaden operations to include the global distribution of marine lubricants.
The announcement follows a strategic agreement with fuel retailer Adnoc Distribution, the company said in a statement on Friday.
Ports Cluster, which owns or operates 24 terminals worldwide, will initially sell lubricants to customers in the UAE before expanding its reach to include a global network, AD Ports said.
“This agreement will see two major global corporations, with vast expertise in their respective fields, creating new opportunities within the marine lubricants market,” said Saif Al Mazrouei, chief executive, Ports Cluster, AD Ports.
“The distribution solutions … add tremendous value to our partners and stakeholders."
AD Ports has a presence in more than 40 countries. Under Kezad Group, part of AD Ports, it also operates more than 550 square kilometres of economic zones in Abu Dhabi.
The company has been rapidly expanding its presence in recent years. Last month, it signed an agreement to buy a majority stake in a key dry port in Tbilisi, Georgia.
In January, its Spanish operations division Noatum Terminals fully acquired APM Terminals Castellon for €10 million ($10.7 million) in a move to strengthen operations in the western Mediterranean region.
“By signing a strategic agreement with the Ports Cluster … we are further expanding the distribution base for our products, gaining access to over 70 international destinations,” said Bader Al Lamki, chief executive of Adnoc Distribution.
The Adnoc subsidiary’s fourth-quarter profit increased 61.4 per cent on an annual basis, boosted by a surge in retail fuel volumes sold. Revenue for the reporting period climbed by nearly 17 per cent annually to Dh9.56 billion ($2.6 billion).
Adnoc Distribution added 41 new stations in 2023, exceeding its full-year target to open 25-35 new stations across its network. The company expects to add 15-20 new stations across its network this year.
