Adnoc Distribution reports Dh910m profit in H1

Fuel retailer, Adnoc Distribution's, first-half net profit slipped 22.4 per cent to Dh910 million due to a decline in fuel sales during the coronavirus-induced lockdown.
Its revenues fell 22.6 per cent, from Dh10.2 billion to Dh7.9 billion. As of June 30, the company's liquidity was at Dh5.2 billion in the form of Dh2.4 billion cash and cash equivalents and Dh2.8 billion in unutilised credit facility. Second-quarter profit fell 14.1 per cent to Dh511 million while revenues plummeted 45 per cent to Dh3 billion. It opened 25 new stations in the first half, including 18 in the second quarter alone. The company plans to open 50-60 new stations in 2020, which includes 20-25 in Dubai.
"Despite the challenging market conditions, we have continued to ensure access to our services, and introduced increased convenience. We have seen fuel volumes recover in line with the easing of movement restrictions," said Ahmed Al Shamsi, acting CEO of Adnoc Distribution.
The fuel retailer's dividends for 2020 increased 7.5 per cent to Dh2.57 billion after a 62 per cent increase in the previous year. First-half total fuel volumes declined 12.2, mainly owing to the impact of Covid-19 on the retail business, partially supported by volumes recovery from the implementation of free-assisted fuelling.
"As a result of the gradual lockdown implemented in the UAE starting March 2020, retail fuel volumes decreased 17.2 per cent year-on-year in the first half of 2020. However, following the ease of lockdown and movement restrictions in the UAE starting end of May, the company has experienced a gradual recovery of fuel volumes. In the months of June and July 2020, our retail fuel volumes recovered to 90 per cent of volumes for the same period last year," it said.
The company expects to pay the first six-month dividend of 2020 (10.285 fils per share) in October of this year, subject to board approval. During its general assembly meeting in March, the company announced an amendment to its dividend policy for 2021 onwards, setting an Dh2.57 billion dividend for 2021 and a dividend equal to at least 75 per cent of distributable profits from 2022 onwards.
waheedabbas@khaleejtimes.com