Adnoc Distribution, the UAE’s biggest fuel and convenience retailer, reported a 6.6 per cent year-on-year rise in its first-quarter net income despite a drop in revenues.
Net income for three months to the end of March rose to Dh577.9 million, the company said in a regulatory filing to Abu Dhabi Securities Exchange, where its shares are traded. The group’s revenues declined by 7.5 per cent to Dh4.7 billion for the three-month period.
"Thanks to an unwavering focus on our customers and the resilience of our business model, we are off to a solid start in 2019," acting chief executive Saeed Al Rashdi said. "We remain focused on accelerating our growth plans in 2019. We are pleased that the market recognises our ability to deliver on our IPO commitments and our potential for future growth."
Adnoc Distribution, which floated 10 per cent of its shares in 2017 has since expanded its portfolio, entering the Saudi and Dubai markets, and looks to open more fuel retail stations this year.
The company, a subsidiary of Abu Dhabi National Oil Company, received shareholders’ approval last month to increase dividend for fiscal year 2019 to Dh2.39bn, a 63 per cent increase on last year’s dividend of Dh1.47bn.
The company's fuel business has expanded to 379 retail stations as of the end of the first quarter of the year. Two additional stations are set to open in Dubai over the coming three months, it said. Number of Adnoc Distribution convenience stores reached 252 at the end of the first three months of the year.
