By Bernd Debusmann Jr
Adnoc Distribution's retail fuel business showed a strong performance, with retail fuel profits rising 13.1%
UAE fuel and convenience retailer Adnoc Distribution saw profit’s dip 30.9 percent as a result of provisions and a revaluation of inventory stock, the company has announced.
According to newly released results, the company’s profits for the quarter ending on March 31 totalled AED 400 million.
Revenues, however, rose 3.6 percent to AED 4.93 billion.
Additionally, earnings before interest, taxes, depreciation and amortisation (EBITDA) were down 24.1 percent, to AED 556 million.
The company’s retail fuel business however, showed a strong performance, with retail fuel profits rising 13.1 percent year-on-year as a result of higher margins and volume growth in January and February.
While retail fuel volumes fell 1.9 percent as a result of the Covid-19 pandemic striking in March, commercial fuel volumes remained stable throughout the year.
“In Q1 2020, we have shown strength and agility as a business,” said Ahmed Al Shamsi, the activing CEO of Adnoc Distribution.
“We are especially thankful to our dedicated frontline colleagues who have played a vital role in this effort by providing a lifeline to communities around the country that rely on our services 24 hours a day to meet their essential fuel, food and grocery needs,” Al Shamsi added.
Looking to the future, Al Shamsi said, “We also remain committed to our shareholders by protecting our business through the application of robust business continuity measures and the strengthening of our business resilience, in readiness to return in a position of strength and continue our growth trajectory when the effects of the pandemic subside.”