Adnoc Distribution has reported a 5.5% year-on-year and 19.4% quarter-on-quarter increase in net profit for the first quarter (excluding inventory movements) to AED551 million ($150 million), driven by strong performance and efficiency improvement measures across all operations and businesses. 

 

The company continued to maintain a strong balance sheet by recording a solid Free Cash Flow of AED1.05 billion during the period.

 

Total fuel volumes for the UAE and KSA increased by 8% year-on-year during Q1 supported by the continued rebound in economic activity and network expansion across the UAE. 

 

Retail fuel volumes – which account for 65% of sales – increased by 5.5% year-on-year. Additionally, corporate fuel volumes witnessed strong growth during the first quarter of the year with a 21% increase compared to the same period last year, mainly driven by the company’s efforts to strengthen its commercial business portfolio through its business development and Customer Relationship Management programs.

 

CEO Engineer Bader Saeed Al Lamki said: "We focused our efforts during the first quarter on streamlining operations across the local and international network while ensuring our cross-border teams were well-equipped to sustain the delivery momentum of the growth trajectory through 2023 and beyond."

 

"At the same time, we maintained a healthy cash flow generation and strong financial position to deliver incremental shareholder value through efficient capital allocation," he stated.

 

Adnoc Distribution said it continued to expand its local footprint by opening six new service stations during the first quarter of the year, reaffirming its leadership across the UAE fuel retail sector with a network of 507 retail fuel stations nationwide as of March 31, 2023. 

 

It remains well positioned to achieve its full-year network expansion targets of 25 to 35 new service stations.

 

The company further advanced its international expansion in February by completing the acquisition of a 50% stake in TotalEnergies Marketing Egypt, one of the top four fuel retail operators in Egypt. 

 

The partnership includes a diversified downstream portfolio of 240 fuel retail stations, 100+ convenience stores, 250+ lube changing stations, and car washes, as well as wholesale fuel, aviation fuel, and lubricant operations. 

 

Since then, TotalEnergies Marketing Egypt has successfully expanded its aviation fuels business through winning the right to supply aviation fuel to Etihad Airways for flights fueled in Cairo. The Company plans to open the first Adnoc flagship service station in Cairo during Q2.