ADNOC Distribution plans to open three stations in Dubai for the first time this year, in addition to 10 new stations to be opened in other parts of the UAE, the company announced on Sunday.
“We don’t have a presence in Dubai, therefore if you are an ADNOC customer, you don’t have that optionality in Dubai,” Reuters quoted deputy chief executive John Carey as saying following the company’s shareholder meeting.
Carey added that ADNOC is in talks with various partners in Saudi Arabia and is examining a franchise model as it seeks to enter the kingdom.
“For me, this is less about the speed and much more about the quality of how we go in and ensure the offer we have for Saudi Arabia is a compelling offer and the partners we work with are compelling,” he said.
At the meeting, ADNOC Distribution’s shareholders approved an AED 735 million ($200.1 million) dividend payment, following a report on the company’s performance which highlighted its achievements in 2017 and ADNOC Distribution’s successful listing on the Abu Dhabi Securities Exchange (ADX) in December.
“The IPO and recently announced fourth quarter and 2017 full year results illustrate that ADNOC Distribution is in a strong financial position, with an enhanced level of profitability, healthy margins and significant opportunities for future growth,” said Dr Sultan Ahmed Al Jaber, ADNOC Distribution board chairman. “The dividend payment that has been approved today is entirely in line with the dividend policy that we announced at the time of the IPO.”
Dr. Al Jaber said that the company “is ahead of schedule and…delivering on the commitments that we made” in the lead-up to the IPO, when the company outlined a growth strategy focused on offering more choice for customers.
According to the company, capital expenditure on new stations from 2019 will be reduced by as much as 40 percent without impacting on safety, customer experience or the ADNOC brand.
Dr. Al Jaber added that the company will continue working towards a more “customer-centric” structure and culture.
“If we maintain a sharp focus on our customers, I am confident that our financial performance will improve even further,” he said. “At the same time, the company’s management must continue driving ahead with its growth strategy while also changing the company’s culture so that every employee is more performance drive and even more customer focused.”For all the latest retail 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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