UAE: Adnoc Distribution Plans 3 Dubai Fuel Service Stations By End 2018

UAE: Adnoc Distribution Plans 3 Dubai Fuel Service Stations By End 2018

The fuel service stations are consistent with the company’s expansion plans

As the fuel and retail arm of Abu Dhabi National Oil Company (Adnoc) eyes expansion in the UAE as well as Saudi Arabia, Adnoc Distribution is getting ready to open three fuel service stations in Dubai by the end of 2018, with all three stations in Dubai sporting the same design as that of the fuel stations in Abu Dhabi.

In line with its expansion plans in the region, Adnoc Distribution has earlier this year stated that it proposes opening at least 13 new service stations in the UAE and Saudi Arabia in 2018. In Dubai, three new service stations are planned, nine in Abu Dhabi, Ajman and Fujairah and at least one site in Saudi Arabia under a franchise agreement. As of December 31, 2017, Adnoc Distribution operates 360 retail fuel stations in the UAE apart from a number of convenience stores.

Last year the company was listed on Abu Dhabi Securities Exchange with the stock opening at Dh2.90 compared to the final IPO price of Dh2.50, a 16 per cent increase. After it offered 10 per cent of its shares through an initial public offering (IPO), it raised Dh3.1 billion. Adnoc Distribution reported a net profit of Dh1.12 billion, in the first half of this year, an increase of 18 per cent in comparison to the same period last year. Compared to the second quarter of 2017, net profit for the second quarter of 2018 increased by 24 per cent.

Saeed Mubarak Al Rashdi, Adnoc Distribution’s Acting CEO, said, “We are on track to hit our declared target of achieving approximately Dh190 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.”

At various fuel stations in Abu Dhabi from late June this year, the company had introduced self-service option, and motorists who want a station attendant to fill their vehicles with fuel will pay Dh10 extra. The 3 fuel service stations in Dubai are on track to open this year. Through Flex, customers are offered with more choices - Self serve or Premium – across Abu Dhabi and currently piloting Flex in the Northern Emirates. Source: Gulf News PWKD14092018

Last modified onFriday, 14 September 2018 03:10
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