ADNOC Distribution reported strong first half results for 2022, recording an EBITDA of AED1.99 billion (US$0.54 billion) and net profit of AED1.56 billion (US$0.27 billion).
The company witnessed year-on-year growth in total fuel volumes, up 9 percent in H1 2022 compared to H1 2021, while the company’s corporate fuel volumes recorded sustained growth with a 27 percent year-on-year increase, underpinned by the UAE’s economic growth and driven by the new corporate fuel sales agreements confirmed last year.
The company’s non-fuel business also continued to see momentum with customer-centric initiatives, increased traffic at stations, and higher food and beverage sales, resulting in a 10 percent increase in gross profit for H1 2022 compared to the same period in 2021.
ADNOC Distribution opened 12 new stations in the UAE, of which 4 in Dubai, taking its domestic network to 472 (Dubai: 35 stations).
In Saudi Arabia, the company added 26 new stations in the first half of the year, taking its network in the Kingdom to 66. The company’s total network stands at 538 stations (as of 30 June 2022), and it remains on track to deliver its target of 60-80 new sites in 2022.
ADNOC Distribution further advanced its international expansion by acquiring a 50 percent stake in TotalEnergies Marketing Egypt, one of the top four fuel retail operators in Egypt, for approximately AED683 million ($185.9 million), with an additional earn-out of up to AED63.5 ($17.3 million).
“In the first half of 2022, we have maintained a strong financial and operational performance while integrating cutting-edge solutions to our customer-focused offerings,” Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said. “We have demonstrated a healthy performance, with consistent growth and a strong balance sheet to support further growth investments and to sustain attractive capital distribution to our shareholders.”
ADNOC Distribution’s 2022 dividend policy is set at a minimum of AED2.57 billion, offering an annual dividend yield of 4.8 percent (at a share price of 4.32 as of 5 August 2022). The company expects to pay a minimum of AED1.285 billion for the first six-month dividend of 2022 (10.285 fils per share) in October of this year, followed by the second six-month dividend of 2022 (10.285 fils per share) in April 2023, subject to the discretion of the board and shareholders’ approval.