Adnoc Distribution Q2 net profit slides amid Covid-19 pandemic

Fuel volumes feel as a result of mobility restrictions in place to prevent the spread of the coronavirus

Adnoc Distribution's revenues fell 45.2% year-on-year in the second quarter due to movement restrictions put in place to contain the spread of the Covid-19 pandemic. Victor Besa / The National

Adnoc Distribution, the UAE’s largest fuel and convenience retailer reported a 14.1 per cent decline in second quarter net profit, largely due to lower fuel volumes sold as a result of mobility restrictions put in place due to the Covid-19 pandemic.

Net profit for the three-month period ending June 30 fell to Dh511 million, compared with Dh595m for the same period last year, the company said in a regulatory filing to the Abu Dhabi Securities Exchange, where its shares trade.

Revenues also fell 45 per cent year-on-year in the period to Dh3 billion from the year-earlier period as a result of movement restrictions, while costs narrowed 60 per cent to Dh1.7bn.

"Despite the challenging market conditions, we have continued to ensure access to our services, and introduced increased convenience," said Adnoc Distribution acting chief executive Ahmed Al Shamsi.

"We have seen fuel volumes recover in line with the easing of movement restrictions.”

More to follow....