It recorded a net profit of 671 million dirhams during the first quarter

ADNOC Distribution's network in Saudi Arabia grows 40% to 55 service stations

ADNOC Distribution, listed on the Abu Dhabi Securities Exchange, announced strong results for the first quarter of 2022, as its profit before interest, tax, depreciation and amortization increased by 7.8% on an annual basis to reach 881 million dirhams, while net profit increased for the same period By 6.3% on an annual basis to reach 671 million dirhams, at a time when it maintained strong cash flow generation, bringing free cash flow to 1.9 billion dirhams, and its network in Saudi Arabia grew by 40% to 55 service stations.

fuel sales

The company revealed that it witnessed a strong recovery in the total quantities of fuel sold compared to the first quarter of the previous year, with an increase of 11% on an annual basis, while the quantities of corporate fuel recorded a strong growth of 19% on an annual basis, driven in part by the signing of new sales agreements concluded in last quarter of 2021.

In turn, the total profit of the non-fuel retail business increased by 11% compared to the same period in 2021, with a 20% increase in the number of non-fuel transactions across the country.

business portfolio

ADNOC Distribution stated that, during the first quarter of 2022, it strengthened its presence by expanding its network of stations locally and internationally, bringing the total number of its stations to more than 500 service stations in the UAE and Saudi Arabia.

The company opened 15 new service stations in Saudi Arabia, bringing its total to 55 service stations, and opened three new service stations in the UAE, bringing the number of its stations inside the country to 464.

ADNOC Distribution confirmed its commitment to its plans to open between 20 and 30 new stations in the UAE by the end of 2022.

In addition to the continuous growth of its network of stations, ADNOC "Voyager" lubricants maintained during the first quarter of the year the momentum of its international expansion, as it became exported to 20 countries.

ADNOC Distribution also expanded its products by launching a range of green “ADNOC Voyager” oils, to provide its customers with 100% vegetable lubricants for gasoline and diesel engines.

positive start

ADNOC Distribution Chief Executive Officer, Bader Saeed Al Lamki, said: “(ADNOC Distribution) achieved a positive start in 2022. We continue to focus on keeping pace with developments and providing all amenities for customers, while also focusing on the future and finding advanced solutions in response to changing market dynamics. ».

He continued: “The company continued to expand its network of stations strongly during the first quarter of the year, and this is evident in the Saudi market, where the network of our stations expanded by 40%.

We are also continuing our plans to open 60-80 new service stations in the UAE and international markets by the end of this year.”

He added, "We have already achieved a number of great achievements in the first quarter of 2022, as we opened 18 new service stations in the UAE and Saudi Arabia, and we also launched a new range of products and enhanced our services, and we focus on continuing and accelerating these achievements throughout the year."

Al Lamki explained: “(ADNOC Distribution) has a strong balance sheet, along with ample financial liquidity, which ensures our ability to continue growth and achieve attractive returns for shareholders.

We are also committed to implementing ambitious growth plans at the local and international levels, which we are working to achieve in 2022.”

profit distribution

It is noteworthy that during the annual general meeting on March 24, the shareholders of “ADNOC Distribution” agreed to distribute dividends for the second half of 2021 in the amount of $350 million, (10,285 fils per share), paid in April 2022, bringing the total dividends for 2021. to $700 million (20.57 fils per share).

The company's strong performance and continuous growth helped to set a clear gradual dividend policy for investors, as the company's dividend policy specifies a distribution of at least 2.57 billion dirhams for the year 2022, which provides shareholders with a clear vision of the returns that can be achieved until April 2023.

The dividend distribution policy for the coming years has set dividends at a rate of no less than 75% of the distributable profits.

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