Abu Dhabi: ADNOC Distribution, the fuel and retail arm of the Abu Dhabi National Oil Company, on Friday reported a 5.5 per cent increase in net profit in the first quarter of 2023, driven by strong performance and efficiency improvement measures across all operations and businesses.
The fuel retailer had a free cash flow of Dh1,048 million during the period.
Strong volume growth
Total fuel volumes for the UAE and KSA increased by 8 per cent year-on-year during Q1-2023 supported by the continued rebound in economic activity and network expansion across the UAE. Retail fuel volumes - which account for 65 per cent of sales - increased by 5.5 per cent year-on-year.
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Additionally, corporate fuel volumes witnessed strong growth during the first quarter of the year with a 21 per cent increase compared to the same period last year, mainly driven by the Company’s efforts to strengthen its commercial business portfolio through its business development and Customer Relationship Management programs.
“We focused our efforts during the first quarter of 2023 on streamlining operations across our local and international network while ensuring our cross-border teams were well-equipped to sustain the delivery momentum of our growth trajectory through 2023 and beyond,” said Eng. Bader Saeed Al Lamki, CEO, ADNOC Distribution.
ADNOC Distribution’s network stood at 507 retail fuel stations in the UAE as of March 31. It remains well positioned to achieve its full-year network expansion targets of 25 to 35 new service stations, the company said in a statement.
The Company further advanced its international expansion in February 2023 by completing the acquisition of a 50 per cent stake in TotalEnergies Marketing Egypt, one of the top four fuel retail operators in Egypt.
The partnership includes a diversified downstream portfolio of 240 fuel retail stations, 100+ convenience stores, 250+ lube changing stations, and car washes, as well as wholesale fuel, aviation fuel, and lubricant operations.
Since then, TotalEnergies Marketing Egypt has successfully expanded its aviation fuels business through winning the right to supply aviation fuel to Etihad Airways for flights fueled in Cairo. The Company plans to open the first ADNOC flagship service station in Cairo during Q2-2023.