Adnoc Distribution, the UAE's largest fuel and convenience retailer, has registered a net profit of Dh2.22 billion ($599 million) for full year 2019, up 4.2 per cent compared to the previous year.

Announcing the full year 2019 results, Adnoc Distribution said its net profit for the fourth quarter surged by 11.3 per cent over the previous year to hit Dh496 million.

In 2019, Ebitda increased by 2.3 per cent to Dh2.84 billion, while the Ebitda excluding inventory gains grew 7.2 per cent to Dh2.72 billion, compared to 2018.

For the fourth quarter, the Ebitda stood at Dh658 million, an increase of 6.5 per cent compared to the same period last year, driven by a solid operational performance in both fuel and non-fuel businesses, said the Emirati fuel retailer in its statement.

According to Adnoc Distribution, the total fuel volumes sold increased by 2 per cent in the fourth quarter of 2019 compared to the previous year, driven by a continued recovery in the company’s retail business, growth in its corporate business and supported by new marketing initiatives.

Growth in retail fuel volumes was driven by improvement in the core Abu Dhabi market, market share gains in the Northern Emirates following implementation of free assisted fueling (effective 3rd November 2019) and the contribution from new stations in Dubai. Non-fuel retail gross profit increased by 10.4 per cent for the same period compared to Q4 2018, it added.

This was supported by the company’s convenience store revitalisation programme which offers customers an improved shopping experience, contributing to an uplift in average basket size by 5.4 per cent in Q4 2019 compared to the same period of 2018.

In Q4 2019, a series of customer-focused initiatives were introduced to enhance the overall customer experience.

The company unveiled its innovative next-generation fuel and retail station ‘Adnoc On the Go’, bringing Adnoc Distribution closer to its customers and the communities that it serves; launched its new customer loyalty programme ‘Adnoc Rewards’, offering customers more benefits, a seamless digital experience and smart payment options; and unveiled its next-generation Oasis convenience store to better serve customers, offering a contemporary family-friendly environment where customers can refuel, unwind and enjoy freshly prepared food.

On the impressive results, Adnoc Distribution’s Acting CEO Ahmed Al Shamsi said: "We have delivered strong results in the fourth quarter as well as for the full year 2019. We continue to transform Adnoc Distribution into a world-class, customer-focused, commercially driven company with a determined focus on driving profitable growth."

"As we sharpen our focus on customer experience and pursue growth opportunities, both domestically and internationally, we will expand all our distribution channels to reach larger market segments and sustain volume growth. Finally, OPEX reduction and optimisation of CAPEX also remain key priorities," he stated.

Impressed with the results, Adnoc Distribution’s Board of Directors has proposed a cash dividend of Dh1.194 billion (9.55 fils per share) for the second half of 2019, which will be submitted to the shareholders for approval at the Annual General Assembly Meeting on March 31.

Subject to shareholders’ approval, total dividend for fiscal year 2019 is expected to be Dh2.39 billion (19.10 fils per share), which would represent a 62 per cent increase compared to the 2018 dividend, in line with the approved dividend policy, it added.-TradeArabia News Service