ADNOC Distribution achieved a net profit of 2.22 billion dirhams in 2019, a growth of 4.2% compared to 2018, while the net profit of the company during the fourth quarter of 2019 increased to 496 million dirhams, an increase of 11.3% compared to the fourth quarter of 2018 .

Profitability before interest, tax, depreciation and amortization increased during the fourth quarter of 2019, to 658 million dirhams, an increase of 6.5% compared to the fourth quarter of 2018, boosted by the strong operating performance of the company's fuel and non-fuel sectors.

distribute profits

The Board of Directors recommended a dividend of 1.194 billion dirhams (9.55 fils per share) for the second half of 2019, according to the approval of shareholders during the general assembly meeting scheduled on March 31, 2020, to reach a total dividend for the year 2.39 billion dirhams (at 19.10 fils per share) for the fiscal year 2019 If shareholders agree, which reflects a 62% increase in annual dividends for 2019 compared to 2018 according to the dividend policy, resulting in an annual return on profits of 6.4% for 2019 (according to the price of 2.97 dirhams per share on February 11, 2020).

The company indicated that it paid half of the profits for 2019 during October of last year, while it expects to pay the second half in April 2020, after obtaining the approval of shareholders.

Strong results

Ahmed Al Shamsi, Acting CEO of ADNOC Distribution, said: “We succeeded in achieving strong financial results in the fourth quarter and at the level of 2019, and we are committed to converting (ADNOC Distribution) to become a world-class company focused on providing a unique experience for customers, which proves our ability to grow. Accompanied by our focus on making profits. ”

He added: “We will continue to focus on enhancing the level of customer service, while looking for opportunities to expand locally and internationally, and we will work to expand our distribution network to reach a larger segment of the market and maintain our rate of growth. We will also continue our efforts to reduce operating costs and activate capital expenditures as one of our top priorities in the coming period. ”

2019 results

According to the results, profit margin before interest, tax, depreciation and amortization continued to increase to 13.3% in 2019 compared to 12.1% in 2018.

The quantities of fuel sold increased by 0.7% in 2019 compared to 2018. Free cash flow (profits before interest, tax, depreciation and amortization minus capital expenditures) increased by 16.4% year on year, to reach 2.33 billion dirhams in 2019. It also increased Total non-oil sales profits increased by 11.8% compared to the previous year.

"ADNOC Distribution" confirmed its keenness to achieve the highest levels of efficiency in its various operations, which contributed to reducing operating costs by 8.6% during 2019 compared to 2018.

Fuel and fourth quarter sales

According to the results, the total quantities of fuel sold increased by 2% during the fourth quarter of 2019 compared to the fourth quarter of 2018, as a result of the improvement in retail sales and the increase in the quantities of fuel sold in the commercial sector, supported by the new promotional campaigns launched by the company. The increase in the quantities of fuel sold retail came as a result of the improvement in the main markets and the increase in the market share in the emirates of the country, after the launch of the service to help refueling for free since the third of November 2019, in addition to the contribution of new stations in Dubai. The total profits of non-oil sales increased by 10.4% during the fourth quarter of 2019 compared to the same period in 2018. These results were supported by the special program to replenish the retail stores of the company, which improved the shopping experience of dealers, contributed to improving the gross margins, and increased average The basket size increased by 5.4% during the fourth quarter of 2019 compared to the same period in 2018.

Achieving the highest efficiency rates in operations, reducing operational costs 8.6% in 2019.