ADNOC Distribution, UAE’s largest fuel and convenience retailer, has reported a net profit of AED 1.15 billion ($313 million) in the first half of 2021.
It reported EBITDA at AED 1.53 billion ($420 million) for the first half and the second quarter EBITDA was AED 712 million with net profit of AED 521 million.
In a statement, the company said 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.
Its Q2 revenue stood at 5.02 billion dirhams versus 3.02 billion dirhams in the same period last year. The company announced it will pay a dividend of AED 2.57 billion and the H1 2021 dividend (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, which it said was an indication of improving consumer sentiment following the successful vaccination drive across the UAE.
It added that 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, the statement said.
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.”
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, ADNOC Distribution continued to deliver on its promise to bring modern, digitally-enabled fuel retail convenience to customers and communities domestically and internationally, with the opening of 12 new stations in the UAE, the statement reads.
In H1 2021, the company received 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.