ABU DHABI – Abu Dhabi’s ADNOC Distribution announced Monday that it had signed two agreements to acquire 20 gas stations in Saudi Arabia for 56.9 million dirhams ($ 15.5 million), bringing its total network in the kingdom to 37. However, the acquisition is subject to certain conditions (including obtaining regulatory approvals).
The two transactions involve 20 gas stations in the East, Central and Riyadh regions of the Kingdom for a total purchase price of up to 56.9 million dirhams ($ 15.5 million).
The company signed an agreement on December 30, 2020 to acquire 15 gas stations in Saudi Arabia following the success of two stations that opened in 2018.
Ahmed Al Shamsi, Acting CEO of ADNOC Distribution said: “We have set ourselves ambitious growth targets for 2020 and it is proof of our robust business model that we are not only meeting, but even exceeding, the forecasts for both new channels have new openings and renovations of convenience stores.
“ADNOC Distribution is well positioned to build on recent successes in the UAE and beyond in the coming year and remains on track to meet its EBITDA target of at least $ 1.0 billion by 2023. We will continue to look for further international expansion opportunities and open up added value for our shareholders. “
The company announced on Monday that its net income increased to 851 million dirhams for the fourth quarter of 2020, with adjusted EBITDA (EBITDA excluding one-time items and inventory gains / losses) of 1.1 billion dirhams. For 2020 the net profit was 2.4 billion dirhams while the adjusted EBITDA was 3.6 billion dirhams.
ADNOC Distribution maintained a strong balance sheet as of December 31, 2020 and remains well positioned to expand both its domestic and international portfolio in line with its smart growth strategy and meet its dividend obligations.
As of December 31, 2020, the company’s liquidity was 5.6 billion dirhams in the form of 2.8 billion dirhams in cash and AED 2.8 billion in unused credit facilities.
After a 24 percent increase in total fuel volumes compared to the previous quarter in the third quarter of 2020, the volumes in the fourth quarter of 2020 increased by 2 percent compared to the third quarter of 2020.
During the year ADNOC Distribution opened 64 new stations, ahead of its market forecast of 50-60 new stations; a delivery rate ten times higher than in 2019.
In 2020, the ADNOC Distribution network in Dubai was significantly expanded with 20 new service stations in the emirate.
The company also added a significant number of new “ADNOC On the Go” stations. 38 opened nationwide in 2020.
In addition, a total of 100 ADNOC Oasis convenience stores were renovated over the course of the year, above the market forecast of 80-90. – SG