Dubai: ADNOC Distribution’s net profit for 2022 is up 22 per cent to Dh2.75 billion as higher fuel prices on average plus a fast expanding network helped with top- and bottom-line numbers.
The Abu Dhabi company’s total fuel volumes ‘continued to increase during the year’, recording an 8 per cent year-on-year gain. Revenues were Dh32.1 billion, quite a jump from the Dh20.9 billion in 2021.
The Board of Directors has recommended a dividend of Dh1.285 billion (10.285 fils per share) for H2- 2022. This would take total dividend for to Dh2.57 billion (20.57 fils per share), translating into a 4.6 per cent annual dividend yield for 2022 (based on a share price of Dh4.44 as of closing on 8 February 2023).
The company paid half of the 2022 dividend in October last and pay for the second-half in April. (The company’s dividend policy from here on sets a payout equal to at least 75 per cent of distributable profits.)
"We have sustained our growth trajectory while generating strong cashflow and maintaining a solid financial position," said Bader Saeed Al Lamki, CEO. "ADNOC Distribution’s priority remains to accelerate achieving sustainable growth and building incremental shareholder value through efficient capital allocation.”
Just recently, the company entered a JV with Abu Dhabi utility company TAQA to develop an EV charging network in Abu Dhabi.
More retail sales too
More fuel stations added to the network has opened up possibilities for its convenience stores, and ADNOC Distribution's non-fuel retail transactions increasing by 15 per cent during 2022. "This was mainly driven by the commitment to its non-fuel retail strategy, while focusing on offering an upgraded customer experience and modernizing the ADNOC Oasis retail space with 42 additional stores refurbished," the company said.
Gains were also made through the loyalty program, ADNOC Rewards. The ADNOC Oasis network totals 362 stores at the end of 2022, from 346 a year before.
ADNOC Distribution also renewed its supply agreement with ADNOC for a further five-year term, thus providing for 'predictable margins and highly cash generative core business', the statement said.
On the overseas side of things, ADNOC Distribution acquired a 50 per cent stake in TotalEnergies Marketing Egypt, one of the top four fuel retail operators in Egypt. This aligns with the 'company’s vision to establish ADNOC Distribution as a regional fuel distribution leader'.