ADNOC Distribution reports net profit of 2.4 billion Dhs

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During the year ADNOC Distribution opened 64 new stations. file

ADNOC Distribution announced today on Monday that its net profit for the fourth quarter of 2020 increased to 851 million Dhs, with an adjusted EBITDA (EBITDA excluding one-time items and inventory gains / losses) of 1.1 billion Dhs. For 2020 the net profit was 2.4 billion Dhs, while the adjusted EBITDA was 3.6 billion Dhs.

ADNOC Distribution maintained a strong balance sheet as of December 31, 2020 and continues to be 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 Dhs 5.6 billion in the form of Dhs 2.8 billion in cash and Dhs 2.8 billion in unused credit lines.

After total fuel volumes increased 24 percent from the previous quarter in the third quarter of 2020, the volumes for the fourth quarter of 2020 increased 2 percent compared to the third quarter of 2020.

During the year ADNOC Distribution opened 64 new stations, ahead of the market forecast of 50-60 new stations; a delivery rate ten times higher than in 2019.


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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.

In addition to growth in the United Arab Emirates, international expansion was accelerated with the announcement that the company signed a definitive agreement to acquire 15 gas stations in the Kingdom of Saudi Arabia on December 30, 2020. The acquisition is subject to certain conditions (including obtaining regulatory approvals) and is driven by ADNOC Distribution’s long-term smart growth strategy.

This transaction was followed today by the announcement of two more definitive agreements to acquire a total of 20 stations in KSA subject to certain conditions (including obtaining regulatory approvals).

The two transactions include 20 gas stations in the East, Central and Riyadh provinces of KSA with a total purchase price of up to 56.9 million Dhs (15.5 million US dollars). The new transactions will expand the company’s entire network to 37 stations.

Ahmed Al Shamsi, Acting Chief Executive Officer of ADNOC Distribution, said: “We have ambitious growth targets for 2020 and it is evidence of our robust business model that we are forecasting both new station openings and convenience stores Renovations have not only met but exceeded.

“ADNOC Distribution is well positioned to build on recent successes in the United Arab Emirates 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 unlock added value for shareholders. “

ADNOC Distribution improved its customer-centric approach over the course of 2020. In July, the company’s ADNOC Rewards program, the UAE’s first loyalty program from a fuel company, was updated to allow customers to get even more from their in-store purchases by earning points for every dirham spent.

The program reached the significant milestone of one million registered customers in the fourth quarter. The total number of transactions with ADNOC Rewards since the introduction of the points program has now exceeded 8 million.

Bringing greater convenience to customers has been an integral part of the company’s core strategy, especially by accelerating its e-commerce strategy. It expanded its flagship partnership with delivery services Talabat and Carriage, which enables customers to order from more than 1,700 ADNOC Oasis products in over 100 convenience stores in the UAE.

The board of directors of ADNOC Distribution commended the management for vaccinating 100% of the frontline station staff to ensure the safety and wellbeing of customers and employees, and commended government agencies for assisting the process.

WAM

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