Abu Dhabi: Adnoc Distribution, the fuel and retail arm of the Abu Dhabi National Oil Company, on Wednesday reported a 6.6 per cent increase in net profit in the first quarter of 2019 on the back of expansion of fuel stations as well as strong customer service.
The company posted net profit of Dh578 million in the first quarter of 2019 compared to Dh542 million during the same period last year.
Revenues for the Abu Dhabi-listed firm were down by 7.5 per cent — from Dh5.1 billion in the first quarter of 2018 to Dh4.7 billion during the same period in 2019.
“Our first quarter results confirm our ambition to sustain strong financial performance through operational excellence and premium customer service. Adnoc Distribution has once again demonstrated its ability to realise profitable long-term growth, driven by greater fuel offerings and service, an enhanced convenience store experience and improved quality of service,” said Adnoc Distribution’s Acting CEO, Saeed Mubarak Al Rashdi in a statement.
“We are well on our way to making Adnoc Distribution a world-class fuel and convenience retailer and look forward to continuing our journey in the UAE and beyond. We remain focused on accelerating our growth plans in 2019.”
In the first quarter of 2019, Adnoc Distribution’s UAE network reached 379 retail fuel stations, with the addition of three new stations.
The company’s convenience store network reached 252, including 14 Géant Express convenience stores, as of March 31, 2019.
During the first quarter of 2019, non-fuel gross profit increased by 9.2 per cent compared to the first quarter of last year.
Adnoc Distribution will host its first-ever Capital Markets Days in London and New York in early May in response to strong international investor interest, the company said.
The company also announced an enhanced dividend policy representing an increase of 63 per cent for 2019 (Dh2,388 million) and 75 per cent for 2020 (Dh2,571 million) compared to 2018 during its general assembly meeting held on April 4.