Abu Dhabi Securities Exchange-listed ADNOC Distribution, which is the UAE’s largest fuel and convenience retailer, has reported the highest Q1 fuel volumes ever recorded in its history while its net profit climbed 6.3 percent year-on-year to $182.6 million (AED 671 million) in the first quarter of 2022.
The form reported strong Q1 2022 results, with a 7.8 percent year-on-year increase in EBITDA to $239.8 million (AED 881 million), while cash flow generation remained strong with free cash flow of $517.2 million (AED 1.9 billion).
The CEO of ADNOC Distribution, Eng Bader Saeed Al Lamki, said: “ADNOC Distribution has had a positive start to 2022. We must stay relevant and deliver on our customers’ desire for continued convenience, while ensuring we remain focused on the future, creating solutions that are evolving in response to, and ahead of, changing market dynamics.”
ADNOC Distribution continued to increase its footprint throughout the first quarter of the year, delivering both local and international network expansion and bringing its network total to more than 500 across all geographies.
In Saudi Arabia, the company added 15 new stations, increasing its network to a total of 55 stations. In the UAE, the company opened three new stations, taking its total domestic network to 464.
Al Lamki added: “Our network expansion has maintained strong momentum throughout the first quarter of the year. This can be seen particularly in Saudi Arabia where we have grown our service station network by 40 percent. We are well on track to deliver 60-80 stations across the UAE and international markets by the end of this year.”
Moreover, the company witnessed strong recovery in total fuel volumes compared to the first quarter of 2021, with an increase of 11 percent year-on-year, the highest Q1 volumes ever recorded, the firm said in a statement.
In addition, corporate fuel volumes witnessed strong growth with a 19 percent year-on-year increase, partially driven by the signing of new sales agreements confirmed in the final quarter of 2021.
Gross profit for non-fuel retail grew 11 percent when compared with the same period in 2021, with a 20 percent increase in non-fuel transactions across the UAE.
ADNOC Distribution remains on track to deliver 20-30 new sites in the UAE before the end of 2022.
In addition to the continued expansion of its service network, ADNOC Voyager lubricants maintained strong momentum in its international expansion through the first quarter, bringing its export network to a total of 20 countries.
The company also expanded its product offering with the launch of the ADNOC Voyager Green Series, which offers customers a 100 percent plant-based lubricant range for both petrol and diesel engines.
The increased footfall across the network has also been supported by consistent marketing and customer loyalty campaigns, with exciting promotions being delivered in store and through the ADNOC Rewards program.
In the first quarter, a series of promotions were launched in ADNOC Oasis stores, car wash, and lube change.
The popular fresh food and bakery range was also complemented with the relaunch of the popular ADNOC Oasis hot dogs, with both traditional and premium options prepared freshly onsite at 50 stores across the UAE.
The ADNOC Rewards loyalty programme also continued to add members in the first quarter of 2022, with more than 1.3 million members now enrolled and 83 partners providing discounts and deals through the ADNOC Distribution app.
The programme has been expanded to include a fuel redemption option, whereby customers can pay for their fuel with their ADNOC Rewards points. This is the latest addition to the newly launched ADNOC Distribution app, launched in March 2022, with an enhanced interface and new features including tracked LPG online ordering and delivery, an updated station location finder, and new ADNOC Rewards offers and features.
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