Adnoc Distribution's nine-month net profit rises 6%

Company's growth in revenue and profit is supported by reopening of the UAE economy

Adnoc Distribution, the UAE’s largest fuel and convenience retailer, which floated 10% of its shares in 2017, continues to expand its network. Courtesy Adnoc

Adnoc Distribution's net profit for the first nine months of the year rose more than 6 per cent to Dh1.68 billion ($457.8 million) due to the recovery of fuel volumes amid the ongoing post-coronavirus growth in the UAE.

Revenue for the nine months through to the end of September rose about 23 per cent to Dh14.7bn.

The company credited its overall performance to the recovery in fuel volumes in September, which rose more than 6 per cent compared with the same period last year, driven by an increase in the retail segment.

The ease in travel restrictions, widespread Covid-19 vaccination efforts and the reopening of schools and offices also contributed to higher fuel volumes.

"We maintain a robust balance sheet and continue to bring new innovations to the market, which demonstrate exceptional customer experience," said Adnoc Distribution chief executive Bader Al Lamki.

"Looking ahead, we expect our growth trend to accelerate, driven by a strengthening economic recovery and an increase in visitors heading into the holiday season, [as well as] Expo 2020 and a number of sporting events being hosted by the UAE. The green shoots of recovery are here and accelerated growth is clear to see."

However, the UAE's largest fuel retailer's third-quarter net profit fell 21 per cent to Dh529m, compared with the same period last year before widespread vaccinations began and global travel restrictions were eased.

Revenue for the three-month period rose 34 per cent to Dh5.4bn.

Adnoc Distribution had 459 fuel stations across the UAE at the end of September, with 31 stations in Dubai contributing to incremental volumes.

The company has also received clearance to acquire 35 stations in Saudi Arabia, with 10 new stations added to the network as of November 8. It is set to open up to 45 stations in the kingdom this year.

In May, Adnoc Distribution joined the MSCI Emerging Markets index, which is tracked by funds with assets worth billions of dollars. It joins nine other UAE-listed companies that are part of the index.

The company was also included in the FTSE Emerging Markets Index in September. The index tracks stocks from emerging markets globally and includes large and medium-cap securities.