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Abu Dhabi’s ADNOC Distribution reported a 27% drop in Q4 2022 net profit to 419 million dirhams ($114 million) on higher operating expenses and no gains in inventory versus the year-ago period.
For the full year, the UAE's largest fuel retailer posted AED2.75 billion net profit, up 22% on year.
The results missed the analysts’ mean profit estimates of AED618 million for Q4 and AED2.87 billion for FY as compiled by data provider Refinitiv.
In a statement to the Abu Dhabi Securities Exchange (ADX) on Thursday, the UAE's largest fuel retailer said Q4 revenue increased 32% year-on-year to AED8.19 billion driven by growth in fuel volumes, higher selling prices on the back of higher crude oil prices as well as higher contribution of nonfuel business.
In line with its plans to expand, ADNOC Distribution invested AED1.25 billion in 2022, of which nearly 65% was spent on growth.
The company says it will look to futureproof its business by exploring potential growth opportunities and new revenue streams created through energy transition, including new mobility solutions such as electric vehicle charging.
Its board of directors has recommended distributing a cash dividend of AED1.3 billion at 10.285 fils per share for the H2 2022. Total dividend for FY2022 is expected to be AED2.57 billion (20.57 fils per share).
(Reporting by Brinda Darasha; editing by Seban Scaria)
