ADNOC Distribution nine-month net profit increases to AED1.72 billion

ABU DHABI, ADNOC Distribution today reported that underlying EBITDA – excluding inventory gains – for the third quarter of 2019 grew to AED698 million, an increase of 10 percent compared to the third quarter of 2018, driven by higher volumes and improved cost efficiencies.

Total fuel volumes sold increased by 3.9 percent in the third quarter of 2019 compared to the third quarter of 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.

The company’s retail volumes were supported by marketing promotions throughout the summer months. Non-fuel retail gross profit also increased by 16.6 percent for the same period compared to Q3 2018. This was supported by the convenience store revitalisation programme which offers customers an improved shopping experience, contributing to an uplift in average basket size of 6.5 percent in Q3 2019 compared to the same period of 2018.

Overall, the company recorded a net profit for the quarter of AED549 million, demonstrating a solid operational performance. When compared to the same period last year, net profit showed a slight decrease of 1.7 percent due to the absence of non-operational inventory gains achieved in Q3 2018.

Commenting on the results, ADNOC Distribution’s Acting CEO, Saeed Mubarak 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.”

Source: Emirates News Agency