Abu Dhabi National Oil Company (Adnoc) has acquired 74 petrol stations from indebted fuel retailer Emarat, state news agency WAM has said.
The deal, which includes stations across Sharjah, Ras Al Khaimah, Ajman, Umm Al Quwain and Fujairah, follows a year after Emarat announced plans to restructure in a bid to return to profit.
The UAE federal government raised the capital of Emarat by 50 percent to AED9bn (US$2.45bn) last year after fuel subsidies imposed on petrol prices by the UAE government hit the company’s profits.
Emarat has debt of around AED1.9bn, UAE’s Federal National Council (FNC) said in January 2011.
Emarat petrol stations were left dry last year after delivery problems at the firm’s depots due to what officials described as logistical problems.
But industry sources said Emarat’s suppliers had refused to discharge a fuel cargo at the port, after it delayed a payment.
Emarat, along with Enoc, Eppco, has been operating at a loss for years as petrol prices in the UAE, the world’s third largest crude exporter, are heavily subsidised and that has taken a toll on the company’s profits.
Enoc said last year it would need to meet an additional AED2.7bn (US$735.3m) in 2011 to cover the cost of providing subsidised fuel.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.