ADNOC Distribution’s EBITDA increased by 7.8% year-on-year to AED 881 million, while net profit for the same period increased by 6.3% year-on-year to AED 671 million, and maintained strong cash flow generation as cash flow reached Free 1.9 billion dirhams, according to the financial results issued today by the company. The company witnessed a recovery in the total quantities of fuel sold compared to the first quarter of the previous year, with an increase of 11% year-on-year. Corporate fuel volumes also posted robust growth of 19% year-over-year, driven in part by the signing of new sales agreements in the fourth quarter of 2021. Total non-fuel retail business profits increased by 11% compared to the same period in 2021, with an increase By 20% in the number of non-fuel transactions across the country. During the first quarter of 2022, ADNOC Distribution strengthened its presence by expanding its network of stations locally and internationally, bringing the total number of its stations to more than 500 service stations in the UAE and Saudi Arabia. The company opened 15 new service stations in Saudi Arabia, bringing the total of its stations to 55 service stations. In addition, the company opened three new service stations in the UAE, bringing the number of its stations within the country to 464 service stations. ADNOC Distribution is committed to its plans to open 20-30 new stations in the UAE by the end of 2022. During the first quarter of the year, ADNOC lubricants “Voyager” maintained its momentum of international expansion, as it was exported to 20 countries. ADNOC Distribution also expanded its products by launching a range of green ADNOC “Voyager” oils, to provide its customers with 100% vegetable lubricants for gasoline and diesel engines.
Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “ADNOC Distribution has made a positive start in 2022. We continue to focus on keeping pace with developments and providing all amenities for our customers, while also focusing on the future and finding advanced solutions in response to changing market dynamics.” He added that the company continued to expand its network of stations strongly during the first quarter of the year, and this is evident in the Saudi market, where the network of our stations expanded by 40%. In addition, we are continuing our plans to open 60 – 80 new service stations in the UAE and international markets by the end of this year. We have already achieved a number of significant achievements in the first quarter of this year, as we opened 18 new service stations in the UAE and the sisterly Kingdom of Saudi Arabia. We also launched a new range of products and enhanced our services, and we focus on continuing and accelerating these achievements throughout the year. He said: “Our network of stations witnessed a great demand from customers, and we strengthened this through continuous shopping campaigns and customer loyalty programs with distinct promotional campaigns within stores and the ADNOC Rewards Program. During the first quarter of the year, we launched a series of promotional campaigns that included ADNOC Oasis stores and car wash centers. and oil exchange services. Fresh food services and ADNOC Oasis Bakery have also expanded with traditional and premium options where fresh sandwiches are prepared locally in 50 stores across the Emirates.” The customer loyalty program “ADNOC Rewards” witnessed continuous growth in the first quarter of 2022, as the number of subscribers to the program now reached more than 1.3 million members, with 83 partner entities offering many discounts and offers through the ADNOC Distribution mobile application.
The loyalty program has also been expanded to include the option to redeem points for fuel, whereby customers can now pay for their fuel purchases using ADNOC Rewards points. The ADNOC Distribution application was also recently updated, as the month of March 2022 witnessed the launch of an improved version with an enhanced interface and new features that include the ability to track gas cylinder requests, the service of finding the nearest service station, and new ADNOC rewards offers. During the annual general meeting on March 24, ADNOC Distribution’s shareholders agreed to distribute dividends for the second half of 2021 in the amount of $350 million, (10,285 fils per share), paid in April 2022, bringing the total dividends for the year 2021 to 700. US$1 million, “20.57 fils per share.” The company’s strong performance and continuous growth helped to set a clear gradual dividend policy for investors, as the company’s dividend policy specifies a distribution of at least 2.57 billion dirhams for the year 2022, which provides shareholders with a clear view of the returns that can be achieved until April 2023. Profits for the coming years are dividends of no less than 75% of the distributable profits. ADNOC Distribution remains confident in its ability to fulfill its strategic commitments and achieve lucrative and sustainable returns for its shareholders. The company maintains its attractive position for investors, especially after being included in the FTSE Abu Dhabi Securities Exchange Index (Fadax 15 Index), the benchmark of the Abu Dhabi Securities Exchange that was jointly developed under the strategic partnership of the Abu Dhabi Securities Exchange with FTSE Russell. The new FADAX 15 index represents the 15 largest companies listed on the Abu Dhabi Securities Exchange, which are selected by their free-floating-adjusted market capitalization and daily trading value. The index will undergo a semi-annual review in March and September. This is the latest inclusion in ADNOC Distribution, having been included in 2021 in the Morgan Stanley Capital International Emerging Market Index, which is widely regarded by international investment institutions, and the company has also been included in the FTSE Emerging Markets Index.
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