Dubai: ADNOC Distribution pulled in a Q1-2024 net profit before tax of Dh573.99 million as the UAE fuel retailer clocked in revenues of Dh8.74 billion. After making provisions for the corporate tax, net profit comes to a solid Dh527.69 million.
Along with the demand for fuel, the ADNOC entity is also booking higher returns from convenience stores across its network. In fact, the non-fuel gross profit returns for the Abu Dhabi company were up a 'strong' 16 per cent to Dh201.85 million.
ADNOC Distribution operates 846 locations, with 532 in the UAE, 69 in Saudi Arabia and 245 in Egypt. Altogether, it pumped in 3.69 billion litres to customers across the first three months of 2024.
“Our robust first-quarter results with an 18 per cent EBITDA growth are a testament to the company’s five-year strategy announced earlier this year, which prioritizes domestic growth, international platforms, and future-proofing the business," said Bader Saeed Al Lamki, CEO.
Target: 1,000 stations and more
"We are well positioned to achieve our operational objectives for 2028, aiming to expand the ADNOC Distribution network to 1,000 stations, increase the number of fast and super-fast EV charging points to at least 500, grow our non-fuel transactions by 50 per cent, and increase the number of convenience stores by 25 per cent."
The net debt to EBITDA is at 0.5x and down from 0.62x by end 2023.
Dividend plans
The company has initiated a new 5-year dividend policy, which sets a yearly payout of $700 million - or a minimum of 75 per cent of net profit, whichever is higher. "This policy provides long-term visibility on returns and potential upside," said a statement.
The planned capex for the year is set at between $250 million and $300 million in 2024, 70 per cent of which is 'earmarked for growth'. (In the first quarter, it invested $46 million. "This strategic allocation of investments aims to boost shareholder value and returns by pursuing ambitious growth projects," the statement added.)
More to follow...
