Adnoc Distribution's 9-month net profit increases 2.3%
The UAE’s biggest fuel and convenience retailer floated 10 per cent of its shares in 2017
Adnoc Distribution, the UAE’s biggest fuel and convenience retailer, reported a 2.3 per cent rise in 9-month net profit, and reiterated full-year dividend will be 62 per cent more than the previous year, the company said.
Net profit for the period ending September 30 rose to Dh1.72 billion from the same period earlier, the company said in a regulatory filing to the Abu Dhabi Securities Exchange, where its shares trade. Underlying Ebitda, excluding inventory gains for the same period grew 10.6 per cent to Dh2.06bn.
"We have delivered strong results in the third quarter as well as the first nine months of 2019 and have demonstrated our ability to realise profitable growth, supported by an increase in fuel volumes sold, an enhanced convenience store experience and improved quality of service," acting chief executive Saeed Al Rashdi said in a statement.
The company "continues to focus on realising cost efficiencies, including across its supply chain and logistics operations, which has contributed to a 9.3 per cent reduction in like-for-like operating expenses for the first nine months of 2019 compared to the same period last year," he added.
Third quarter net profit declined 1.7 per cent due to the absence of non-operational inventory gains seen during the same period last year.
Overall fuel volumes increased for the first three months by 3.9 per cent, which Adnoc Distribution said was driven due to improvements in core markets such as Abu Dhabi and the northern emirates.
In August Adnoc Distribution said it plans to enter the Indian lubricants market by the third quarter. Lubricants have become a new market segment for UAE fuel retailers such as Adnoc Distribution and Emirates National Oil Company, which have looked abroad to diversify away from saturated home markets by tapping into high-growth demand centres such as India.
"Looking ahead, we are focused on the acceleration of our domestic network expansion, particularly in the Dubai market, and the growth of our nonfuel business," he added.
Plans are underway to upgrade around 100 stores across the UAE as part of a revitalisation programme, Mr Al Hashimi said with new product offerings and a new loyalty programme.
The company plans to distribute a Dh2.39bn or 19.10 fils per share annual dividend for 2019 62 per cent more than the 2018 dividend. Adnoc Distribution paid half of the 2019 dividend in October of this year and plans to pay the remaining portion in April 2020, subject to board approval.
Updated: October 31, 2019 12:31 PM