Adnoc Distribution sees profit decline to Dh400m
Profitability was hurt by lower fuel sales because of COVID-19 created restrictions
Abu Dhabi: Adnoc Distribution, the UAE’s largest fuel and convenience retailer, reported revenues of Dh4.93 billion for the first three months, an increase 3.6 per cent from last year. Profits were down by a sizeable 30.9 per cent to Dh400 million, and attributed to the drop in business from COVID-19 and which led to lower total fuel sales. There was also a decline in non-fuel and commercial business profitability. But the overall financial position remains solid, with liquidity at Dh8 billion in the form of Dh5.2 billion in cash and Dh2.8 billion in unutilised credit facility.
Resilient
“In Q1-2020, we have shown strength and agility as a business,” said Ahmad Al Shamsi, acting CEO at Adnoc Distribution. “By understanding our customers’ needs and adapting our products and services, while they adhere to social distancing, we built a stronger relationship with our communities, one that we hope will last long into the future after this pandemic is over.”
The first quarter EBITDA (earnings before interest, taxes, depreciation and amortisation) was down 24.1 per cent, to Dh556 million.
Keeping up spending
Capital expenditure was up to Dh185 million, as the Abu Dhabi company added seven new stations. It expects capital expenditure to continue to accelerate as it plans to add more stations during the second quarter.
“We remain committed to our shareholders by protecting our business through the application of robust business continuity measures and the strengthening of our business resilience, and continue our growth trajectory when the effects of the pandemic subside,” the CEO said.
“We will continue to deliver long term attractive shareholder returns, underpinned by progressive dividend policy, smart growth and disciplined capital allocation, well supported by a solid balance-sheet.”