ADNOC Distribution saw AED1.56 billion in net profits fuelled by high demand and retail prices, the UAE’s largest oil distributor said in a new report.
Total fuel volumes rose by 9 percent, compared to the same period last year, driven by the company’s retail and commercial businesses.
Non-fuel business also continued to “see momentum,” it said in a statement, by 10 percent in gross profit due to customer-centric initiatives, increased traffic at stations, and higher food and beverage sales.
Revenues for the first half totalled up to AED15.37 billion, showing a 65 percent rise from last year’s AED9.3 billion.
“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. 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,” ADNOC Distribution’s chief executive officer Bader Saeed Al Lamki said.
The oil distributor will pay a dividend of AED1.285 (10.285 fils per share) billion as the first six-month dividend of 2022.
The dividend policy is set at AED2.57 billion, for the year.
“The company’s dividend policy for the years thereafter sets a dividend equal to at least 75 percent of distributable profits,” WAM said in a statement, adding the policy “recognises the company’s strong financial position and cash-flow generation ability going forward, supporting growth opportunities and sustaining attractive shareholder distribution.”
The company aims to enter Egypt to “unlock new earnings,” Al Lamki said, where the distributor aims to buy 50 percent stake in TotalEnergies for approximately AED683 million ($185.9 million).
The acquisition is expected to be completed in the first quarter of 2023, post customary regulatory approvals, and will align with the UAE distributor’s vision to become a “regional fuel distribution leader.”
“Customer experience has continued to be a fundamental component of the company’s growth in H1 2022, driven by a series of in-store promotions and campaigns and through the ADNOC Rewards programme,” WAM said in a statement.
Notable promotions and campaigns included the ‘Let’s Go Shop and Win’ raffle draw, comprehensive vehicle inspection, car wash, and lube change offers.
The company also saw a 28 percent quarter-on-quarter increase by Dh8.63 billion between April to June.
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