Dubai: The UAE fuel and convenience store retailer ADNOC Distribution drove up with a 12.9 per cent rise in net profit after tax to Dh1.17 billion for the first six months of 2024. It would have been a 24.5 per cent and Dh1.29 billion profit if the corporate tax obligation was factored out.
The profit mix was brought about by higher fuel volumes and contributions from its operations in Saudi Arabia and Egypt, plus growth in the non-fuel retail business. In fact, the non-fuel retail gross profit contribution increased 13.5 per cent in Q2-2024 to $56 million, helped by the expanding car wash business and new initiatives such as 'tunnels and upgraded automatic car washes' aapart from 'enhanced convenience store offerings'.
ADNOC Distribution expects to pay the Dh1.27 billion dividend for H1-2024 in October, which will be fully covered by the H1 cash flow. For 2024-28, the policy is to pay Dh2.57 billion (20.57 fils per share) or a minimum 75 per cent of net profit, whichever is higher. (At Dh2.57 billion, the 2024 dividend yields 6 per cent (at a share price of Dh3.42 on August 7.)
2024, subject to the discretion of the Company’s Board of Directors and to the shareholders’ approval.
“The strong Q2-2024 results, marked by double-digit growth in EBITDA and net profit, highlights our effective pursuit of the company’s five-year strategy, focusing on domestic growth, international platforms, future-proofing the business, and investing in convenience and mobility," said Bader Saeed Al Lamki, CEO.
"We are well-positioned to build on this momentum in the second-half of the year, leveraging our increasingly diversified revenue streams to continue delivering value to shareholders.”
The company, which reported revenues of Dh17 billion plus, now has 847 fuel and service stations across its network, of which 534 are in the UAE.
It will allocate between $250 and $300 million in capex for 2024, with 70 per cent of the investment 'directed towards growth-focused initiatives'.
