Abu Dhabi, UAE – ADNOC Distribution, a major player in the fuel retail sector based in Abu Dhabi, has announced a net profit of 2 percent year-on-year, totaling AED 1.03 billion in the first half of 2023. The company also reported a 9 percent year-on-year increase in underlying EBITDA, reaching AED 1.57 billion.
One of the key drivers of ADNOC Distribution’s success was the growth in total fuel volumes, particularly in the UAE and the Kingdom of Saudi Arabia. The company achieved a 9 percent increase in fuel volumes during the first half of 2023, compared to the same period in 2022. Retail fuel volumes, which contribute significantly to the company’s overall volumes, witnessed an 8 percent year-on-year surge. The corporate fuel volumes recorded an impressive 12 percent year-on-year growth, a testament to the company’s strategic efforts in strengthening its commercial business portfolio.
The company’s non-fuel retail business also showed a strong performance, marking a remarkable increase of over 12 percent in gross profit compared to the previous year. This growth was driven by a 14 percent rise in transactions, which contributed to a record-high conversion rate in convenience stores.
The company’s initiatives focused on boosting food and beverage sales, offering customer-centric products, and introducing innovative services played a pivotal role in achieving this growth.
ADNOC Distribution has partnered with TAQA to establish E2GO, a joint venture focused on building and operating EV services infrastructure in Abu Dhabi and across the UAE. ADNOC Distribution has also entered into a strategic partnership with Abu Dhabi’s Department of Municipalities and Transport (DMT) to explore sustainable mobility solutions.
“As a future-focused business, we remain on track to meet targets for the year in OPEX savings and network expansion locally and internationally, and expect this growth momentum to continue into the second half of the year,” Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said. “Supported by our firm belief in our smart growth strategy while embarking on our transformational plans that focus on innovation and upgrading the customer experience, we remain committed to achieving sustainable growth and rewarding returns for shareholders in the long term.”