Dubai: The UAE fuel and convenience store operator ADNOC Distribution pumped out Dh1.56 billion in net profit for first-half of 2022, helped by demand and higher fuel retail prices. The non-oil side of the business also benefitted, resulting in a 10 per cent increase in gross profit from a year ago.
Fuel volumes, meanwhile, grew 9 per cent, driven by ADNOC Distribution's commercial and retail businesses. First-half revenues were Dh15.37 billion, which is a massive 65 per cent gain on the Dh9.3 billion last year. On a quarter-on-quarter basis, there’s been a 28 per cent increase that fuelled ADNOC Distribution to Dh8.63 billion between April to June.
ADNOC Distribution will pay a ‘minimum of’ Dh1.285 billion as the first six month dividend (at 10.285 fils a share) this October. For the full year, the payout will be Dh2.57 billion at a minimum.
"We maintained a strong financial and operational performance while integrating cutting-edge solutions to our customer-focused offerings," said Bader Saeed Al Lamki, CEO, ADNOC Distribution. "We have demonstrated a healthy performance, with consistent growth and a strong balance-sheet to support further growth investments and to sustain attractive capital distribution to our shareholders."
And then there is the overseas push. After Saudi Arabia, the Abu Dhabi firm is zeroing in on Egypt, buying a 50 per cent stake in TotalEnergies Marketing Egypt, which has 240 fuel retail stations, wholesale fuel, aviation fuel and lubricants operations.
"Our entry into Egypt will mark a significant milestone in our company’s journey that will help unlock new earnings potential through a diversified portfolio," the CEO said. "Our investment in our network expansion, launch of new products, and innovative services cater to our customers’ needs as we deliver digitally-enabled convenience in wider locations. By doing so, we are able to accelerate our domestic and international growth expansion plans.”