Abu Dhabi energy giant ADNOC's retail arm records 2020 net profit of Dh2.4b

Dubai: ADNOC Distribution’s net profit for the fourth quarter of 2020 jumped by nearly 72 per cent year-over-year to Dh851 million as residents made their way back to offices and generating greater demand for fuel. For full-year 2020, net profit was Dh2.4 billion, compared to Dh2.22 billion a year earlier.

The Board of Directors has recommended a dividend of Dh1.28 billion (10.285 fils per share) for the second-half of 2020, taking full-year payout to Dh2.57 billion (20.57 fils per share), a 7.5 per cent increase over 2019. It has further recommended changes to the dividend policy, setting a minimum of Dh2.57 billion ($700 million) in 2022.

“ADNOC Distribution is well placed to continue building on recent success, in the UAE and beyond, in the year ahead and remains on track to reach an EBITDA target of at least $1 billion by 2023,” said Ahmed Al Shamsi, Acting CEO of ADNOC Distribution, in a statement.

On target for more

ADNOC Distribution has signed two agreements to acquire a total of 20 stations in Saudi Arabia, subject to certain conditions. The deals, which consist of service stations in the Eastern, Central and Riyadh Provinces of Saudi Arabia, are valued at up to Dh56.9 million ($15.5 million).

“These are important milestones for our company as we expand outside of the UAE and a key element of our profitable growth strategy too. We will continue to seek further international expansion opportunities and unlock incremental value for shareholders,” said Al Shamsi.

Go for volumes

Total fuel volumes rose 2 per cent in the fourth quarter compared to the third quarter, which saw a 24 per cent quarter-on-quarter increase in volumes.