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UAE: ADNOC Distribution Achieves AED 1,124m Net Profit For 1H 2018

UAE: ADNOC Distribution Achieves AED 1,124m Net Profit For 1H 2018

It is 18% growth in comparison to the same period last year

The UAE’s largest fuel and convenience retailer, ADNOC Distribution, has posted a net profit of AED 1,124 million for the six months ended June 30, 2018, a growth of 18% in comparison to the same period last year. There was a 30% increase in EBITDA to AED 1,443 million and gross profit rose by 24% to AED 2,609 million. In the first half of 2018, free cash-flow (EBITDA minus capital expenditures) generation was up 72% year-on-year to AED 1,111 million.

The company has also shown continued momentum, quarter-on-quarter. Compared to the second quarter of 2017, net profit for the second quarter of 2018 was up 24%. For Q2 2018, gross profit increased by 33%, and gross profit margin rose to 25%, up from 22% during the same period last year.

ADNOC Distribution Acting CEO, Saeed Mubarak Al Rashdi, said that ADNOC Distribution’s second quarter and half-year results reflect their continued progress towards delivering on their strategy. “We have made progress in all three of our strategic pillars: fuel, non-fuel and cost-efficiency. We are on track to hit our declared target of achieving approximately AED 190 million in cost savings in 2018 and, as a newly public company, are continuing to exercise a heightened level of discipline in capital investments, resulting in a reduction in our capital expenditure budget compared to 2017. Notably, we have been able to achieve these costs savings while continuing to grow our service station network, and without impacting safety, quality and our customer experience.”

As it transforms the business into a more customer-centric organization, ADNOC Distribution made important progress operationally, and expands its fuel and non-fuel offerings. The implementation of ADNOC Flex, presenting customers the choice of Premium or Self-Serve refueling; the launch of two new retail brands – Géant Express convenience stores and Oasis Café coffee shops and bakeries; and the opening of eight new service stations and 10 new convenience stores since last year’s second quarter, include the initiatives delivered during the second quarter.

ADNOC Distribution, on the technology front, installed an additional 69,000 RFID-enabled Smart Tags during the second quarter. This is part of its world-class ADNOC Wallet cashless payment solution, bringing the total installed base of Smart Tags to over 180,000.

ADNOC Distribution's Deputy CEO, John Carey, added that ADNOC Distribution continues to demonstrate strong and profitable performance supported by improved margins and a continued cost focus. “We have seen good momentum across our businesses, led by a 39% increase in EBITDA in our retail segment and a 5% increase in volumes sold by our Corporate Sales segment in the first half of 2018. We remain confident on the delivery of our business plan for 2018 and beyond, and are well on our way to making ADNOC Distribution a world-class fuels and convenience retailer.” PWKD14082018

Last modified onTuesday, 14 August 2018 05:39
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