Dubai: The Abu Dhabi fuel retailer, ADNOC Distribution has made a strong start to the year, with net profit at Dh671 million in the first quarter, helped by a record rise in fuel volumes by 11 per cent. The net profit tally is 6.3 per cent up on last year. A sharp rise in fuel prices too would be reflected in the top-line numbers.
Revenues totalled Dh6.73 billion against Dh4.28 billion a year ago. What will please ADNOC Distribution will be the numbers streaming in from its Saudi operations, where the number of its fuel stations total 55. In the UAE, it operates 464 locations and will be adding another 20-30 before year-end.
Shareholders will get the proceeds from the robust returns. The company’s dividend policy has been set at a minimum Dh2.57 billion for 2022, providing ‘visible payback to shareholders until April 2023’. The dividend policy for subsequent years is set at a minimum 75 per cent of distributable profits. The payout for 2021 was $700 million (or 20.57 fils a share), with the second tranche being paid off last month.
“ADNOC Distribution continues to maintain a strong balance-sheet alongside robust liquidity, which ensures that we can continue to pursue growth opportunities and sustain attractive shareholder payback,” said Bader Saeed Al Lamki, CEO. “We have committed to ambitious national and international growth, which we remain on track to deliver in 2022.”
The company was recently included in the new FTSE ADX 15 (FADX15) Index, which represents the Top 15 companies on the ADX, selected by a combination of free float adjusted market cap and daily trading values. The stock is trading at Dh4.10.
- Total fuel volumes for ADNOC Distribution were up 11% year-on-year in the first quarter of 2022.
- Corporate fuel volumes had ‘strong growth’ with a 19% year-on-year increase, through the signing of new sales agreements in the final quarter of 2021.
- Non-fuel retail gross profit was up 11% compared with the same period in 2021, with a 20% increase in non-fuel transactions across the UAE.