By Sam Bridge
ADNOC Distribution to waive a AED10 fee for assisted fuelling from Sunday as it reports rise in net profit
ADNOC Distribution said on Thursday it is to waive a AED10 fee for assisted fuelling from Sunday as it reported a 2.3 percent rise in net profit to AED1.72 billion for the first nine months of 2019, compared to the same period last year.
ADNOC Distribution’s acting CEO, Saeed Mubarak Al Rashdi, said the board had approved plans to offer the free service to all customers.
"We trust this will be very well received by our customers as well as our investors as it will facilitate and strengthen our ambitious network expansion and volume growth targets. As a result of cost reductions and other initiatives, we do not expect this to have an impact on our profitability or dividend policy,” he added.
From June last year, motorists either pumped their own petrol or had the option to pay attendants a small fee to fill their tank. This service also included a windshield wash and a tyre pressure check.
The UAE’s largest fuel and convenience retailer reported total fuel volumes sold increased by 3.9 percent in the third quarter of 2019 compared to Q3 2018, driven by improvements in the core retail markets of Abu Dhabi and the Northern Emirates, as well as contributions from new stations in Dubai and growth in commercial volumes.
It added that Q3 net profit fell by 1.7 percent to AED549 million due to the absence of non-operational inventory gains achieved in Q3 2018.
Al Rashdi said: “We have delivered strong results in the third quarter as well as the first nine months of 2019 and have demonstrated our ability to realise profitable growth, supported by an increase in fuel volumes sold, an enhanced convenience store experience and improved quality of service.
"Looking ahead, we are focused on the acceleration of our domestic network expansion, particularly in the Dubai market, and the growth of our non-fuel business.”
He added: “We are well on our way to making ADNOC Distribution a world-class fuel and convenience retailer and look forward to continuing our journey in the UAE and beyond.”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.