Dubai: Adnoc Distribution has reported net profit of Dh910 million for the first six months of 2020, with the second quarter performance being particularly impressive. During April to June, it had a net profit of Dh511 million.
Net profit for first-half 2019 was at Dh1.17 billion.
“Adnoc Distribution maintains a robust balance-sheet and remains well-positioned to expand both its domestic and international portfolio in line with its smart growth strategy,” the company said in a statement.
It’s got the funds – liquidity at the end of June was Dh5.2 billion, with Dh2.4 billion in cash.
For the six months, the fuel retailer had revenues of Dh7.95 billion, down from 10.27 billion. But all through the COVID-19 infected period, the company kept adding to its network, and also pushed hard on expanding its interests in the online space.
The company is “on track” to deliver 50 to 60 new fuel service locations through this year, of which 20-25 will be in Dubai.
“Despite the challenging market conditions, we continued to ensure access to our services, and introduced increased convenience,” said Ahmed Al Shamsi, acting CEO. “We have seen fuel volumes recover in line with the easing of movement restrcitions.
“We maintain our strategy to expand our domestic footprint, particularly in the heart of neighbourhood communities, which previously did not have convenient access to refueling services.”
The plan is to pay the first-half 2020 payments – of Dh10.28 fils a share – in October, and subject to board approval.
In March, the company confirmed an amendment to its dividend policy from next year onwards, which sets Dh2.57 billion as payout, while from 2022 onwards, it would be equal to at least 75 per cent of distributable profits.