ADNOC Distribution, UAE’s largest fuel and convenience retailer, reported today strong first half results for 2022, recording an EBITDA of AED 1.99 billion and net profits of AED 1.56 billion.
The company said it witnessed year-on-year growth in total fuel volumes, up 9% in H1 2022, compared to the same period last year. Additionally, the company’s corporate fuel volumes recorded sustained growth with a 27% year-on-year increase, which ADNOC Distribution attributed to UAE’s economic growth, driven by the new corporate fuel sales agreements confirmed last year.
“In the first half of 2022, we have maintained a strong financial and operational performance while integrating cutting-edge solutions to our customer-focused offerings,” Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said in a press release.
Our investment in our network expansion, launch of new products, and innovative services cater to our customers’ needs as we deliver more modern, digitally-enabled convenience in wider locations.
Eng. Bader Saeed Al Lamki, CEO, ADNOC Distribution
Al Lamki added, “We have demonstrated a healthy performance, with consistent growth and a strong balance sheet to support further growth investments and to sustain attractive capital distribution to our shareholders.”
Rising momentum
ADNOC Distribution said it accelerated delivering on its growth strategy throug the first half of the year, with the opening of 12 new stations in the UAE, of which 4 in Dubai, taking its domestic network to 472. In the Kingdom of Saudi Arabia, the company added 26 new stations in the first half of the year, taking its network in the Kingdom to 66. The company’s total network stands at 538 stations (as of 30 June 2022) and it remains on track to deliver its target of 60 to 80 new sites in 2022.
In addition, ADNOC Distribution saw the progression of its store refurbishment program, with 5 ADNOC Oasis stores renovated in the first six months of the year. The newly refurbished stores feature fresh food, barista-brewed coffee and a wider menu selection, which have contributed toward a year-on-year increase in gross profit from non-fuel activities.
ADNOC Distribution announced advancement of its international expansion by partnering with TotalEnergies to acquire a 50% stake in TotalEnergies Marketing Egypt, one of the top four fuel retail operators in Egypt, for approximately $185.9 million.
“…Our entry into Egypt will mark a significant milestone in our company’s journey that will help unlock new earnings potential through a diversified portfolio, further contributing to our financial performance,” added Al Lamki.
Customer-focused approach
ADNOC Distribution’s 2022 dividend policy is set at a minimum of AED 2.57 billion, offering an annual dividend yield of 4.8% (at a share price of 4.32 as of 5 August 2022).
The company expects to pay a minimum of AED 1.285 billion for the first six-month dividend of 2022 (10.285 fils per share) in October of this year, followed by the second six-month dividend of 2022 (10.285 fils per share) in April 2023, subject to the discretion of the board and shareholders’ approval.
The company’s dividend policy for the years thereafter sets a dividend equal to at least 75% of distributed profits. According to ADNOC Distribution, the policy recognizes the company’s strong financial position and cash-flow generation ability going forward, which will support growth opportunities and sustain attractive shareholder distribution.
