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Abu Dhabi’s ADNOC Distribution reported on Monday that its second-quarter net profit soared nearly 71% to AED891 million ($243 million) and that it is on target to reach an EBITDA of at least AED3.67 billion by next year.
In a statement to the Abu Dhabi Securities Exchange (ADX), the UAE's largest fuel retailer said revenue for the period was AED8.64 billion, 72% higher year-on-year, mainly due to higher fuel volumes and inventory gains, as well as non-fuel retail business.
For the first half of the year, net profit was AED1.56 billion, 36% higher compared to the same period last year, supported by higher EBITDA, which came in at AED1.99 billion.
During the period, the company hit about 60% of its 2022 network expansion target, delivering 38 new stations across the UAE and Saudi Arabia and growing its total network to 538 stations. This led to higher fuel volumes compared to the same period of 2021.
CEO Bader Saeed Al Lamki said ADNOC Distribution’s entry into Egypt will help unlock new earnings potential through a diversified portfolio.
"Our investment in the network expansion, launch of new products and innovative services cater to our customers’ needs as we deliver more modern, digitally-enabled convenience in wider locations. By doing so, we are able to accelerate our domestic and international growth expansion plans and deliver higher returns to our shareholders."
The company said it expects to pay a minimum of AED1.285 billion (10.285 fils per share) as dividend for H1 in October followed by the second six-month dividend of a similar value in April 2023, subject to stakeholder approvals.
(Reporting by Brinda Darasha; editing by Cleofe Maceda)
