Adnoc Distribution posts Dh1.58b net profit for 9 months
Adnoc Distribution, the UAE’s largest fuel and convenience retailer, reported on Wednesday a net profit of Dh1.581 billion for the first nine months of 2020.
The fuel retailer said in a statement that its underlying Ebitda (earnings before interest, taxes, depreciation, and amortisation) for the first nine months grew to Dh2.554 billion.
For the third quarter, underlying Ebitda was Dh1.132 billion, while net profit stood at Dh671 million. Free cash flow generation remained solid during the third quarter, the company said in a statement.
Adnoc Distribution, which is listed on the Abu Dhabi Securities Exchange, said it demonstrated “a resilient and steadfast focus on smart growth in the first nine months of the year, despite continued market uncertainty caused by the Covid-19 pandemic.”
It said it remains well-positioned to expand both its domestic and international portfolio in-line with its smart growth strategy. As of September 30, 2020, the company’s liquidity was at Dh6.8 billion in the form of Dh4.0 billion in cash and cash equivalents and Dh2.8 billion in unutilised credit facility, said the company.
“Since the end of June 2020, and following the initial Covid impact on transport mobility, Adnoc Distribution’s retail fuel volumes continue to show steady recovery. Volumes for Q3 2020 increased by 24 per cent as compared to the previous quarter,” it said.
Ahmed Al Shamsi, acting CEO of Adnoc Distribution said third-quarter results have continued to advance the firm’s strategic priorities of steady and sustainable growth, enhanced customer experience, and attractive capital returns for our shareholders.
“We continue to ensure our network has a wider reach across all Emirates, particularly in the heart of neighbourhood communities, which previously did not have convenient access to re-fueling services. We maintain significant capacity to deploy capital through a disciplined investment strategy aimed at continuing our efforts to expand our fuel station network, with a focus on the Dubai market, as well as investing in our non-fuel and international business expansion,” said Al Shamsi.
In the first nine months, the fuel retailer’s C-store revitalisation program saw a total of 41 convenience stores being refurbished and modernised, 30 of which were successfully refurbished in Q3 2020. “The company remains focused on bringing a fresh, engaging environment to its stores. As a result, Adnoc Distribution has increased its C-store revitalisation guidance to 80-90 convenience stores in 2020, a significant uplift from the previous guidance of 40-50 C-stores,” said the statement.
Adnoc Distribution is also accelerating its e-commerce strategy and launching new services tailored to customer needs, expanding its digital offering to include contactless payment solutions, online delivery from its convenience stores and mobile fuel and LPG delivery services via its digital application, it said.
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