Adnoc registers record net profit of Dhs1.15 billion in first half of 2021

Staff Reporter, Gulf Today

Adnoc Distribution, the UAE’s largest fuel and convenience retailer, which is listed on the Abu Dhabi Securities Exchange (ADX), on Tuesday reported that its first half 2021 EBITDA stood at Dhs1.53 billion, with net profit of Dhs1.15 billion. For the second quarter, EBITDA was Dhs712 million with net profit of Dhs521 million.

The strong results were driven by higher fuel volumes, improvement in non-fuel and commercial gross profit margin and increased operational efficiencies made in the first half of 2021. The company’s fuel volumes saw progressive recovery towards pre-COVID levels, an indication of improving consumer sentiment following the successful vaccination drive across the UAE. In addition, the company continues to add incremental volumes from its Dubai stations alongside a proactive sales strategy in its corporate business.

Operationally, as part of its ongoing transformation, the company remains committed to reducing operating costs and ensuring competitiveness in the UAE fuel retail and convenience store sector. Throughout the first half of 2021, Adnoc Distribution’s operational expenditure (excluding depreciation) decreased by 10% compared to H1 2020.

Adnoc Distribution continues to maintain a robust balance sheet and remains well-positioned to expand both its domestic and international portfolio in-line with its smart growth strategy.

During the first half of 2021, Adnoc Distribution continued to deliver on its promise to bring modern, digitally-enabled fuel retail convenience to customers and communities domestically and internationally, with the opening of 12 new stations in the UAE. In H1 2021, the company received no objection certificates from the Saudi General Authority for Competition (GAC) to acquire 35 stations in Saudi Arabia, which deals were previously announced in December 2020 and February 2021. Adnoc Distribution remains committed to bringing modern fuel and retail convenience to customers and communities across the Kingdom.

Building on the momentum achieved in 2020, Adnoc Distribution has also continued to provide a modern, digital experience to customers. This includes enhanced payment options, including through the Adnoc Distribution app, which offers a fully-contactless customer experience, and the growing popularity of its online delivery service, available through Talabat and Carriage from more than 100 ADNOC Oasis stores across the UAE.  In addition, to further support of the company’s ambitious non-fuel retail strategy, a total of 24 Adnoc Oasis convenience stores were refurbished throughout the first half of 2021.

Engineer Bader Al Lamki, Chief Executive Officer, Adnoc Distribution said: “Adnoc Distribution’s second quarter and half-year results further reinforce the company’s growth story and its strong standing within the fuel retail sector. We have a steadfast focus to provide modern fuel retail convenience to customers, deliver on the company’s ambitious strategy, and build long-term shareholder value through the next phase of our growth. These results reflect our focused drive towards delivering on our strategy, and sustained progress in all of our strategic pillars: fuel, non-fuel and cost-efficiency. We continue to make disciplined capital investments, achieving cost savings while growing our service station network, and maintaining high levels of safety, quality and customer experience.

“I am extremely proud of our teams, who have adapted quickly to the new operating environment, while delivering on our long-term strategy. ADNOC Distribution is well-positioned to capitalise on a number of exciting opportunities and partnerships, both this year, and well into the future. This progress is made with safety and sustainability at its heart, highlighting our commitment to a sustainable future and focus on the safety and wellbeing of our community,” he concluded.

Together with its commitment to upholding the highest standards of health and safety for both employees and customers, the company has continued its drive to enhance its customer offering through Adnoc Rewards, the UAE’s first customer loyalty program from a fuel provider. A total 18 new partners were added to the Rewards program in H1 2021, bringing the total number of partners to 40, and offering members even more deals and discounts from some of the UAE’s best leisure and entertainment brands.