Adnoc Distribution reports 9% quarterly profit rise

Reuters/Jack Jabbour

• Net profit of $227m
• Fuel and retail both up
• 828 service stations in total

Adnoc Distribution’s third-quarter net profit rose 9 percent year on year, boosted by double-digit growth in fuel volumes and non-fuel business, the company said in a results announcement this week.

The UAE’s largest fuel and convenience retailer, listed on the Abu Dhabi Securities Exchange, reported a net profit of AED835 million ($227 million) and a 28 percent year-on-year increase in earnings before interest, tax, depreciation and amortisation of AED1.1 billion ($303 million)

The company generated a free cash flow of AED1.447 billion ($394 million) in the third quarter of 2023. 

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Adnoc Distribution CEO Bader Saeed Al Lamki noted in a statement that these are some of the strongest results since the company’s initial public offering in 2017.

“We witness strong momentum across our fuel and non-fuel retail segments,” he said.

The company recorded a 21 percent year-on-year increase and a 5 percent quarter-on-quarter growth in total fuel volumes sold in the GCC region.

Non-fuel business grew in the third quarter, with the volume of retail transactions up 14 percent.

This growth was driven by the company’s ongoing expansion in the UAE and the Mena region. Adnoc Distribution has opened 12 new service stations during the third quarter of 2023, bringing its total network to 828. 

Besides new openings in the UAE and Saudi Arabia, the company has opened three new locations across Greater Cairo in Egypt and plans to add six more.

Its international expansion received a major boost with the acquisition of a 50 percent stake in TotalEnergies Marketing LLC in Egypt earlier this year. 

The company has also focused on key areas such as developing the country’s electric vehicle (EV) charging infrastructure and hydrogen refuelling. It has established over 40 superfast EV charging points and plans to operate the first high-speed hydrogen refuelling station in the region.