ADNOC Distribution Records Strong Performance in H1 2022
ADNOC Distribution, the UAE’s largest fuel and convenience retailer, which is listed on the Abu Dhabi Securities Exchange (ADX), today reported strong first half results for 2022, recording an EBITDA of $541 million and Net Profits of $424 million.
In H1 2022 ADNOC Distribution achieved approximately 60% of its 2022 network expansion target, delivering 38 new stations across the UAE and Saudi Arabia, growing its total network to 538 stations
The company further signed an agreement to acquire a 50% stake in TotalEnergies Marketing Egypt, which includes 240 fuel retail stations, wholesale fuel, aviation fuel and lubricants operations, delivering on commitment to international growth
Year-on-year growth in total fuel volumes, up 9% in H1 2022 compared to H1 2021, while the company’s corporate fuel volumes recorded sustained growth with a 27% year-on-year increase, underpinned by the UAE’s economic growth and driven by the new corporate fuel sales agreements confirmed last year.
The company’s non-fuel business also continued to see momentum with customer-centric initiatives, increased traffic at stations, and higher food and beverage sales, resulting in a 10% increase in gross profit for H1 2022 compared to the same period in 2021.
ADNOC Distribution accelerated delivering on its growth strategy throughout H1 2022, with the opening of 12 new stations in the UAE, of which 4 in Dubai, taking its domestic network to 472 (Dubai: 35 stations).
In the Kingdom of Saudi Arabia, the company added 26 new stations in the first half of the year, taking its network in the Kingdom to 66.
The company’s total network stands at 538 stations (as of 30 June 2022) and it remains on track to deliver its target of 60-80 new sites in 2022.
In addition, ADNOC Distribution saw the progression of its store refurbishment program, with 5 ADNOC Oasis stores renovated in the first six months of the year. The newly refurbished stores feature fresh food, barista-brewed coffee and a wider menu selection, which have contributed toward a year-on-year increase in gross profit from non-fuel activities.
Eng. Bader Saeed Al Lamki, CEO, ADNOC Distribution, said, “In the first half of 2022, we have maintained a strong financial and operational performance while integrating cutting-edge solutions to our customer-focused offerings.
"We have demonstrated a healthy performance, with consistent growth and a strong balance sheet to support further growth investments and to sustain attractive capital distribution to our shareholders.
“Furthermore, our entry into Egypt will mark a significant milestone in our company’s journey that will help unlock new earnings potential through a diversified portfolio, further contributing to our financial performance."