Dubai: The fuel retailer ADNOC Distribution recorded net profits totalling Dh2.63 billion against Dh2.74 billion. The company, which has a growing presence in Saudi Arabia and Egypt alongside its UAE home market, has recommended a dividend totalling Dh1.28 billion (or 10.28 fils a share) for the second-half of 2023.
"Net profit of Dh2.6 billion, while down 5.4 per cent year-on-year, fully covers the dividend for 2023 of Dh2.57 billion as per the dividend policy," the Abu Dhabi headquartered company said. Also, the 'net profit excluding inventory movements increased by 6.4 per cent year-on-year to Dh2.26 billion despite higher depreciation charge and finance costs'.
As of end December, ADNOC Distribution's retail network totals 840 fuel stations, including 529 in the UAE, 243 in Egypt and 68 in Saudi Arabia.
dividend of Dh2.57 billion (20.57 fils per share) for 2023 (compared to a minimum 75% of distributable profits
as per the previous policy). This yields 5.8% (at a share price of Dh3.57 as of February 6, 2024) and 'offering
higher payback visibility for the shareholders'.
Tapping FAB for Dh230m
The company's board of directors also approved entering a non-funded facility agreement for SR230 million with First Abu Dhabi Bank for a 12-month period, for new bank guarantees to support its further expansion in Saudi Arabia.
Revenues were up to Dh34.6 billion, from Dh32 billion for 2023, with free cashflow rising 18.7 per cent. In a statement, the ADNOC entity said that it 'maintained a strong financial position with liquidity of Dh6 billion, in the form of Dh3.2 billion in cash and cash equivalents and Dh2.8 billion in unutilized credit facility' as of end 2023.
The revenue gains were a result of 'growth in fuel volumes and higher non-fuel retail segment contribution, partially offset by lower pump prices as a result of lower oil prices in 2023 compared to 2022'.
EV charging and more
"The company expects solid outlook for full-year 2024 and beyond, underpinned by volume growth momentum, higher contribution of non-fuel retail, and growth in international operations," the statement adds. "In its quest to future-proof the business, the company is rapidly developing fast EV charging infrastructure across its UAE network.
"ADNOC Distribution has agreed with TAQA, one of the largest listed integrated utility companies in the EMEA region, to work together to establish a new mobility joint-venture." Through the development of modern mobility solutions, ADNOC Distribution intends to become a destination of choice for charging and convenience for the UAE customers.
New mobility solutions?
"In addition, ADNOC Distribution continues to explore further growth opportunities in mobility and lifestyle as well as new revenue streams created through energy transition.
"Through the development of modern mobility solutions, ADNOC Distribution intends to become a destination of choice for charging and convenience for the UAE customers."