Adnoc Distribution’s 2020 profits jump 9.7% to Dh2.4b

The UAE’s largest fuel retailer Adnoc Distribution’s net profit increased 9.7 per cent to Dh2.43 billion in 2020, against the Dh2.21 billion recorded in 2019, on the back of massive expansion of retail outlets across the country.

Its board recommended a dividend of Dh1.285 billion, or 10.285 fils per share, for the second half of 2020, taking full-year 2020 dividend to Dh2.57 billion or 20.57 fils per share, a 7.5 per cent increase over the previous year. Board further recommends changes to the dividend policy, setting a minimum of Dh2.57 billion in 2022.

The company paid half of the 2020 dividend in October last year and expects to pay the final payment in April 2021.

Its annual revenues fell 24.4 per cent to Dh16.13 billion in 2020 as against Dh21.33 billion in the previous year. Gross profit rose 16.2 per cent to Dh5.78 billion and operating profit jumped 12.8 per cent to Dh2.6 billion.

As of December 31, 2020, the company’s liquidity stood at Dh5.6 billion in the form of Dh2.8 billion in cash and cash equivalents and Dh2.8 billion in unutilised credit facilities.

In 2020, Adnoc opened 64 new stations. There was a significant increase in its network in Dubai in 2020, with 20 new service stations opened in the emirate.

“We set ambitious growth targets for 2020 and it is testament to our resilient business model that we not only met, but exceeded guidance in terms of both new station openings and convenience store refurbishments,” said Ahmed Al Shamsi, acting CEO of Adnoc Distribution.

Its fourth quarter 2020 profit jumped 71.5 per cent to Dh851 million as against Dh496 million in Q4 2019. Similarly, Q4 gross profit and operating profit jumped 28.3 per cent and 77.1 per cent to Dh1.61 billion and Dh902 million, respectively.

waheedabbas@khaleejtimes.com