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Abu Dhabi’s ADNOC Distribution reported a 45% jump in Q3 2022 net profit to 767 million dirhams ($209 million) and said the growth momentum is expected to continue through the year and into 2023.
In a statement to the Abu Dhabi Securities Exchange (ADX), the UAE's largest fuel retailer said the higher net profit was driven by higher EBITDA and lower depreciation charges in Q3, due to a change in accounting estimates related to useful life of assets that was implemented in in the quarter. "The change resulted in a reduction of AED 125 million in depreciation for 9M 2022 with a full impact reflected in Q3 2022."
However on a sequential quarter basis, net profit came in 14% lower.
Revenue for the period was AED8.55 billion, 58% higher year-on-year, mainly due to higher fuel prices and volumes, as well as growth in non-fuel retail business, it said. However, compared with the previous quarter, revenue slipped 1% as the company sold lower volumes of fuel.
EBITDA came in 18% higher at AED868 million and the company reiterated it is on target to reach an EBITDA of at least AED3.67 billion by next year.
In the current quarter total fuel volumes sold reached 2,322 million liters, increasing by 1.9% compared to Q3 2021, it said.
It plans to invest approximately AED918 million of CAPEX in 2022 on new service stations and equipment.
The company expects to pay a minimum of AED1.285 billion (10.285 fils per share) as dividend for H2 2022 in April next year.
(Reporting by Brinda Darasha; editing by Daniel Luiz)
