Dubai: Fuel retailer Adnoc Distribution said on Tuesday that its net profit for the nine months to September rose 28 per cent on the back of rising revenues.
Net profit rose to Dh1.68 billion, from Dh1.31 billion in the year-before period. In the three months to September, net profit rose 55 per cent to Dh558 million. Revenues rose by nearly a fifth to Dh16.92 billion in the first nine months of the year. Revenues rose 24 per cent to Dh5.95 billion.
“Our third quarter results confirm that we continue to deliver on our strategy, delivering and sustaining robust financial results through our focus on operational excellence, innovation, and cost efficiency,” Adnoc Distribution acting CEO Saeed Mubarak Al Rashdi said.
EBITDA margin for the nine months ended September 30, 2018, reached 13 per cent, up from 11 per cent during the same period last year
The company’s stores generated higher revenues driven by increased footfall and conversion rates in the third quarter compared to the second quarter of 2018. This was driven by management initiatives to improve the customer experience, including a more focused store revitalisation programme and the implementation of Flex Rewards, which offers Premium refuelling rewards that may be redeemed in its convenience stores.
Adnoc Distribution’s deputy CEO, John Carey, added: “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 54 per cent increase in EBITDA in our retail segment and a 3 per cent increase in volumes sold by our corporate sales segment in the first nine months of 2018.”
“We remain confident on the delivery of our business plan for 2018 and beyond, and are well on our way to making Adnoc Distribution a world-class fuels and convenience retailer,” Carey said.