ADNOC Distribution’s net profit rose 12.1 percent to AED 542.2 million ($147.6 million) in the first quarter of 2018, as it continues to push forward with a growth strategy the company says is “on track”.
In its Q1 financial results released on Wednesday, ADNOC Distribution noted that gross profits went up 14.3 percent to AED 1.185 billion ($322.6 million) compared to the same time period last year, while EBITDA (earnings before interest taxes depreciation and amortisation) went up 24.9 percent to AED 702.8 million ($191.3 million).
“ADNOC Distribution’s first quarter results illustrate a company that is financially strong and has laid a solid foundation for further growth, with its fuel, non-fuel and cost-efficiency initiatives,” said Saeed Mubarak Al Rashdi, ADNOC Distribution’s acting CEO.
“A strong and profitable ADNOC Distribution is good for shareholders, but it’s also good for customers and the UAE as it allows the company to continue investing in critical infrastructure, technology and human capital that supports the country’s development,” he added.
According to ADNOC, the total fuel volume sold rose 0.9 percent from Q1 2017, reaching 2.3 billion litres.
Gross profit increased by 37.1 percent in the company’s non-fuel retail business, while the average amount spent by each customer rose by 12.5 percent.
Over the course of Q1, the company launched ADNOC Flex, which will be rolled out throughout the UAE in Q2 and Q3 of this year.
Additionally, the company opened its first Géant Express store in Abu Dhabi as it pushes forward with a convenience store revitalisation plan.
“Our financial performance in the first quarter was strong, despite some market-wide headwinds, with increases in EBITDA and net profit,” said ADNOC Distribution deputy CEO John Carey.
“This provides us with a solid foundation to continue transforming our business and delivering against our growth strategy.”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.
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