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Abu Dhabi: Adnoc Distribution on Sunday announced net profits of Dh1.17 billion in the first of half of 2019, a 4.3 per cent increase compared to the same period last year.

The UAE’s largest fuel and convenience retailer, Adnoc Distribution’s financial figures pointed to a positive business outlook, with its financial report also showing a free cash flow generation of Dh1.34 billion in the first half of 2019, up 21 per cent year-on-year.

The group also revealed that its Ebitda (earnings before interest, taxes, depreciation and amortisation) for the second quarter of 2019 was Dh750 million and its net profit was Dh595 million, up 1.3 per cent and 2.2 per cent respectively compared to the second quarter of 2018.

1.3 %

Rise in Adnoc Distribution’s Ebitda in first half

“Thanks to an unwavering focus on our customers, the strength of our business model, and the successful execution of our strategic initiatives, we have once again delivered solid results in the first half of 2019,” said Saeed Mubarak Al Rashdi, Adnoc Distribution’s acting chief executive officer.

“During the remainder of 2019 we are focused on the acceleration of our domestic network expansion, particularly in Dubai, and the growth of our non-fuel business to provide a superior experience to our customers,” he added, highlighting Dubai as a key target area for the group’s expansion.

“Our priorities remain growth and shareholder returns underpinned by our progressive dividend policy. As previously announced, we intend to boost top-line growth in both our fuel and non-fuel businesses, and have targeted in excess of Dh3.67 billion of Ebitda by 2023,” Al Rashdi said.

63 %

Rise in Adnoc Distribution’s dividend for 2019

Other financial results showed that underlying Ebitda for the first half of 2019 grew by 11 per cent to Dh1.36 billion compared to the first half of 2018. Non-fuel retail gross profit also increased by 10 per cent in the first half of 2019.

The company’s Ebitda margin has also shown continued momentum, reaching 14.4 per cent in the first half of 2019, up from 13.2 per cent during the same period last year.

The latest financial results follows Adnoc Distribution’s new dividend policy announced back in April, representing an increase of 63 per cent in the annual dividend for 2019 (Dh2.39 billion) and 75 per cent for 2020 (Dh2.57 billion) compared to 2018. The company expects to pay the interim dividend of 2019 in October of this year, subject to board approval.