Dubai: Adnoc Distribution, the UAE’s largest fuel and convenience retailer, has reported that net profit Dh1.12 billion for the six months ended June 30, 2018, up by 18 per cent to compared with the same period last year.
Earnings before tax, depreciation and amortisation (EBITDA) grew by 30 per cent to Dh1.44 billion, and gross profit rose by 24 per cent to Dh2.6 billion. Free cash-flow (EBITDA minus capital expenditures) generation was up 72 per cent year on year to Dh1.11 billion in the first half of 2018.
increase in Adnoc’s second quarter profit, year on year
Net profit for the second quarter of 2018 surged by 24 per cent compared to the second quarter of 2017. The company’s financial performance during the first half of 2018 remained resilient notwithstanding a challenging market environment. Total fuel volumes sold during the period was 4,763 million litres, a 1 per cent decrease compared to the same period last year.
“Adnoc Distribution’s second quarter and half-year results reflect our continued progress towards delivering on our strategy. We have made progress in all three of our strategic pillars: fuel, non-fuel and cost-efficiency. We are on track to hit our declared target of achieving approximately Dh190 million in cost savings in 2018 and, as a newly public company, are continuing to exercise a heightened level of discipline in capital investments, resulting in a reduction in our capital expenditure budget compared to 2017,” said Saeed Mubarak Al Rashdi, Adnoc Distribution Acting CEO.
Operationally, Adnoc Distribution made important progress as it transforms the business into a more customer-centric organisation and expands its fuel and non-fuel offerings. Initiatives delivered during the second quarter include the implementation of Adnoc Flex, which provides customers the choice of Premium or Self-Serve refuelling; the launch of two new retail brands — Géant Express convenience stores and Oasis cafe coffee shops and bakeries; and the opening of eight new service stations and 10 new convenience stores since last year’s second quarter.
“Adnoc Distribution continues to demonstrate strong and profitable performance supported by improved margins and a continued cost focus. We have seen good momentum across our businesses, led by a 39 per cent increase in EBITDA in our retail segment and a 5% increase in volumes sold by our Corporate Sales segment in the first half of 2018,” said John Carey, Adnoc Distribution’s Deputy CEO.