Friday 5 March 2021

Adnoc Distribution Q4 net profit tops $231m

ABU DHABI, 17 days ago

Adnoc Distribution, the UAE’s largest fuel and convenience retailer, said that its net profit for the fourth quarter of 2020 grew to AED851 million ($231.6 million), with underlying EBITDA of AED1.1 billion

For the year 2020, net profit was AED2.4 billion, while underlying EBITDA stood at AED3.6 billion. The company delivered a robust financial performance throughout 2020, despite continued market uncertainty caused by the Covid-19 pandemic.

Adnoc Distribution has maintained a strong balance sheet as of 31 December 2020, and remains well-positioned to expand both its domestic and international portfolio in-line with its smart growth strategy, as well as meet its dividend commitments. As of 31 December 2020, the company’s liquidity was at AED5.6 billion in the form of AED2.8 billion in cash and cash equivalents and AED2.8 billion in unutilized credit facilities.

Following a 24% quarter-on-quarter increase in total fuel volumes in Q3 2020, volumes for the fourth quarter of 2020 increased 2% compared to the third quarter of 2020.

During the year, Adnoc Distribution opened 64 new stations, ahead of its guidance to the market of 50-60 new stations; a rate of delivery ten times that of 2019. There was a significant increase in Adnoc Distribution’s network in Dubai in 2020, with 20 new service stations opened in the emirate.

Ahmed Al Shamsi, Acting Chief Executive Officer of Adnoc Distribution said: “I am pleased to announce Adnoc Distribution’s robust fourth quarter and full year performance. Through our employees’ continued dedication to ensuring customer safety and convenience, we have delivered a strong performance, despite challenging market conditions.”

“We set ambitious growth targets for 2020 and it is testament to our resilient business model that we not only met, but exceeded guidance in terms of both new station openings and convenience store refurbishments.

“Adnoc Distribution is well placed to continue building on recent success, in the UAE and beyond, in the year ahead and remains on track to reach EBITDA target of at least USD 1.0 billion by 2023. During Q4 2020, we announced the start of our further expansion into the Kingdom of Saudi Arabia with an agreement to acquire 15 service stations, two further agreements to acquire an additional 20 stations were announced this month.

“These are important milestones for our company as we expand outside of the UAE and a key element of our profitable growth strategy too. We will continue to seek further international expansion opportunities and unlock incremental value for shareholders,” he said. – TradeArabia News Service



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