Adnoc Distribution profits increase 8.2% to $653.5m in 2020
UAE fuel and convenience retailer announced $15.5m programme to expand network in Saudi Arabia
UAE fuel and convenience retailer Adnoc Distribution’s net profits totalled $653.5m in 2020, an 8.2 percent increase compared to 2018, despite the continued economic uncertainty caused by the coronavirus crisis.
The increase was achieved despite revenues dropping by 24.4 percent over the last year, from $5.8 billion to $4.4bn.
In a statement on Monday, the firm reported that EBIDTA (earnings before interest, tax, depreciation and amortisation) rose 12.3 percent to $868m.
Ahmed Al Shamsi, acting chief executive officer of ADNOC Distribution, said: “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.”
During last year, ADNOC Distribution opened 64 new stations, a rate of delivery ten times that of 2019, with 20 new service stations opened in Dubai alone. The company also added 38 ‘ADNOC On the Go’ stations across the country.
A total of 100 ADNOC Oasis convenience stores were refurbished throughout the year, which helped contribute to an increase in average gross basket size by 18.8 percent compared to 2019.
In addition to its growth in the UAE, international expansion was accelerated with the announcement in December that the company is to acquire 15 service stations in the eastern region of Saudi Arabia.
ADNOC Distribution also announced agreements worth $15.5m to acquire a further 20 stations in the eastern, central and Riyadh provinces of the kingdom.
Al Shamsi added: “These are important milestones for our company as we expand outside of the UAE and a key element of our profitable growth strategy too. We will continue to seek further international expansion opportunities and unlock incremental value for shareholders.
“ADNOC Distribution is well placed to continue building on recent success, in the UAE and beyond, in the year ahead and remains on track to reach EBITDA target of at least $1bn by 2023.”
As of December 31, 2020, the company’s liquidity was around $1.5bn in the form of $762m in cash and cash equivalents and $762m in unutilized credit facilities.