Skip to content Skip to Search
Skip navigation

Adnoc Distribution profit falls 5% in 2023

Revenue at Adnoc Distribution rose 7.8% year on year to AED34.63bn, fuelled by a double-digit increase in fuel volumes and non-fuel business Adnoc Distribution
Revenue at Adnoc Distribution rose 7.8% year on year to AED34.63bn, after a double-digit increase in fuel volumes and non-fuel business

Adnoc Distribution, the Abu Dhabi-listed fuel retailer, saw net profit fall 5.4 percent to AED2.6 billion ($707.87 million) in 2023, from AED2.75 billion in 2022, after lower inventory gains.

Revenue rose 7.8 percent year on year to AED34.63 billion, thanks to a double-digit increase in fuel volumes and non-fuel business.

The Abu Dhabi-listed fuel retailer generated a strong free cash flow of $1.1 billion (AED4.0 billion) while maintaining a robust balance sheet with a net debt-to-Ebitda ratio of 0.62x as of December 31, 2023.

Net profit for the fourth quarter rose 61.4 percent to AED677 million from AED419 a year ago. Revenue jumped 16.8 percent year on year to AED9.56 billion. 

Adnoc Distribution’s board has approved a new five-year strategy for 2024-28, targeting the next phase of growth with a focus on sustainable mobility and convenience, said CEO Bader Saeed Al Lamki.

It includes optimising existing assets to improve our profitability, doubling down on non-fuel retail, and generating new revenue streams offered by energy transition,” he said.

Total fuel volumes recorded an 11.8 percent year on year growth in 2023 in the GCC markets, with retail volumes growing by 9.6 percent and commercial volumes up by 16.2 percent year on year. This growth was underpinned by the ongoing network expansion, sustained momentum in the region’s economic growth, and higher mobility.

Adnoc Distribution passed its target of opening 25 to 35 new stations in 2023, launching 41 new service stations, bringing its total network to 840 service stations, of which 597 are located in the UAE and Saudi Arabia.

The company’s board recommended distributing a dividend of AED1.285 billion for the second half of 2023, which will be presented for shareholders’ approval in March. If approved, the total dividend for 2023 is expected to be AED2.57 billion.

Latest articles

Adult, Male, Man

World Bank’s $700m push for Egypt’s private sector

The World Bank will provide $700 million in funding to Egypt to address short-term economic challenges. The development policy financing (DPF) will aid in supporting the Egyptian government’s focus more towards private sector participation. The financing will further advance structural reforms to level the playing field to support private sector growth, build macroeconomic and fiscal […]

Mubadala injects $250m to revive Turkey’s Getir

Abu Dhabi’s Mubadala Investment Company will invest $250 million in Turkish grocery delivery startup Getir as part of a restructuring programme that will split it into two standalone units. The first standalone business will focus on domestic online groceries and food delivery services, with Mubadala, an existing shareholder, holding the management and majority stake, Reuters […]

Saudi Arabia's Capital Markets Authority approved Arabian Mills' public flotation application on the Saudi stock exchange on Monday

Arabian Mills to sell 30% stake on Saudi bourse 

Arabian Mills for Food Products will list 15.4 million shares, or a 30 percent stake, on the Saudi stock exchange, the kingdom’s market regulator has said. The Capital Markets Authority (CMA) approved the company’s public flotation application on Monday, adding that the prospectus will be published before the subscription start date. No other details of […]

Properties overlooking the bay in Muscat. Property prices in the capital fell more than 5 percent

Oman’s real estate sector continues to slide

Apartment prices in Oman dropped more than 17 percent in the first quarter of 2024, while villa prices rose a meagre 0.8 percent, according to the latest government figures. Residential real estate prices were down across the board quarter on quarter, including those for land. The Musandam region recorded the largest overall decline at 15.7 […]