Corporate fuel sales rise 27%, driven by economic growth in the country

1.56 billion dirhams, net profit of "ADNOC Distribution" during the first half

The total number of the company's stations is currently 538.

From the source

Yesterday, ADNOC Distribution announced strong results for the first half of this year, as earnings before interest, tax, depreciation and amortization amounted to 1.99 billion dirhams, while the company recorded a net profit of 1.56 billion dirhams.

The company stated in a statement, that during the first six months of 2022, it witnessed a growth in the total volume of fuel sales on an annual basis, amounting to 9% compared to the same period last year, while the company recorded a steady growth in the volume of corporate fuel sales by 27% on an annual basis. Annually, driven by the economic growth witnessed by the country and the confirmation of new sales agreements for corporate fuel that were signed last year.

Gross profit of the non-fuel retail business increased by 10% in the first half of this year, compared to the same period last year, driven by customer-focused promotions, increased transactions at service stations, and increased food and beverage sales.

ADNOC Distribution accelerated the implementation of its growth strategy during the first half of 2022, by opening 12 new service stations in the UAE, four of them in Dubai, bringing the number of its stations within the country to 472 service stations (35 service stations in Dubai).

In Saudi Arabia, the company opened 26 new service stations during the first half of the year, bringing the total number of its stations in the Kingdom to 66 service stations.

This brings the total number of the company's stations to 538, as on June 30, 2022, while the company is moving forward with its goal of opening 60-80 new sites in 2022.

ADNOC Distribution strengthened its global expansion by entering into a partnership with Total Energy, where it announced the largest investment deal in its history to acquire a 50% share of the company's business portfolio.

Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: "During the first half of 2022, we maintained a strong financial and operational performance, while using the latest solutions to enhance our services."

He added: "The company's performance has been strong with steady growth and a solid financial budget to support growth-enhancing investments and achieve attractive returns for shareholders."

profit distribution

ADNOC Distribution's dividend policy for 2022 is to distribute a minimum dividend of 2.57 billion dirhams, yielding an annual profit return of 4.8% (based on the share price of 4.32 fils as of August 5, 2022).

The company expects to distribute cash dividends of no less than 1.285 billion dirhams (10,285 fils per share) for the first half of 2022 in October, and the second part of the dividends for 2022 (10,285 fils per share) will be paid in April 2023, according to the Board’s assessment. Company management and shareholder approval.

• 38 new service stations opened by the company in the UAE and Saudi Arabia.

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