Abu Dhabi" Adnoc Distribution on Thursday reported 18 per cent growth in net profit for 2018 driven by expansion of fuel stations and convenience stores.
The company, listed on the Abu Dhabi bourse, made a net profit of Dh2.128 billion in 2018 compared to Dh1.804 billion in 2017. Revenue increased by 16 per cent in 2018, totalling Dh22.89 billion versus Dh19.76 billion during the previous year, the company said in a statement.
16%Increase in revenue last year, totalling Dh22.89 billion
“We generated positive momentum, driven by greater fuel offerings and service, an enhanced convenience store experience and improved quality of service. We have delivered on our business plan commitments for 2018 and remain focused on volume growth initiatives with accelerated UAE and international expansion plans,” said Adnoc Distribution’s Acting CEO, Saeed Mubarak Al Rashdi.
“We are well on our way to make Adnoc Distribution a world-class fuel and convenience retailer.”
In 2018, Adnoc Distribution became the first fuel retailer in the UAE to service all seven emirates. Adnoc Distribution operates 376 retail fuel stations, 250 Adnoc Oasis convenience stores and 13 Géant Express convenience stores as of December 31, 2018 and is the leading marketer and distributor of fuels to commercial, industrial and government customers throughout the UAE.
Adnoc Distribution operates 376 retail fuel stations, 250 Adnoc Oasis convenience stores and 13 Géant Express
Adnoc Distribution is the only fuel retailer operating in all seven emirates in the UAE, and in 2018 expanded its operations internationally, opening its first two service stations in the Kingdom of Saudi Arabia.
The company’s capital expenditure was Dh772 million in 2018 compared to Dh1.45 billion in 2017, down by 47 per cent.
Adnoc Distribution’s deputy chief executive officer John Carey told Bloomberg TV on Thursday that there is a huge opportunity in Saudi Arabia. “We’ve seen in our sites, a significant uptick in volumes and people visiting the site. I see it as a whole picture, not just as a fuel picture I think it is fuel and non-fuel. What’s happening in that market is the consumers are expecting more and I think when they get it they are spending money. We know convenience retail works when it is done well.”
47%Fall in company’s capital to Dh772 million in 2018
Adnoc Distribution’s convenience stores continued to generate higher revenues, resulting from increased footfall and higher rates of conversion from fuel purchases to convenience purchases in the fourth quarter compared to the third quarter of 2018.
The company is planning further expansion inside the UAE as well as internationally in 2019, according to the statement.