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UAE’s largest fuel and convenience retailer, ADNOC Distribution has reported its first half 2021 EBITDA at AED 1.53 billion ($420 million), with net profit of AED 1.15 billion. For the second quarter, EBITDA was AED 712 million with net profit of AED 521 million.
Higher fuel volumes, improvement in non-fuel and commercial gross profit margin and increased operational efficiencies made in the first half of 2021 helped in delivering good results, the company said.
Its Q2 revenue stood at 5.02 billion dirhams versus 3.02 billion dirhams in the same period last year.
The company will pay a dividend of AED 2.57 billion. The first six-month's dividend of 2021 (10.285 fils per share) is expected to be paid in October of this year, subject to board approval.
The company’s fuel volumes saw progressive recovery towards pre-COVID-19 levels. In addition, the company continues to add incremental volumes from its Dubai stations alongside a proactive sales strategy in its corporate business.
The company remains committed to reducing operating costs and ensuring competitiveness in the UAE fuel retail and convenience store sector, ADNOC Distribution said in a statement. Throughout the first half of 2021, ADNOC Distribution’s operational expenditure (excluding depreciation) decreased by 10 percent compared to H1 2020.
Engineer Bader Al Lamki, Chief Executive Officer, ADNOC Distribution said: "These results reflect our focused drive towards delivering on our strategy, and sustained progress in all of our strategic pillars: fuel, non-fuel and cost-efficiency. We continue to make disciplined capital investments, achieving cost savings while growing our service station network, and maintaining high levels of safety, quality and customer experience."
ADNOC Distribution remains well-positioned to expand both its domestic and international portfolio in-line with its smart growth strategy, the statement said.
During the first half of 2021, the company opened 12 new stations in the UAE. It also secured no objection certificates from the Saudi General Authority for Competition (GAC) to acquire 35 stations in Saudi Arabia.
In May 2021, the company announced that Morgan Stanley Capital International (MSCI) had included ADNOC Distribution as part of its prestigious MSCI Emerging Markets Index.
(Reporting by Seban Scaria; editing by Anoop Menon)
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