ADNOC Distribution reported that its first half 2019 net profit increased by 4.3 per cent, to AED 1.173 billion, compared with the same period last year.
Free cash flow (EBITDA minus capital expenditures) generation was up 21 per cent year-on-year to AED 1.345 billion in the first half of 2019.
Commenting on the results, ADNOC Distribution’s Acting CEO, Saeed Mubarak Al Rashdi, said: “Thanks to an unwavering focus on our customers, the strength of our business model, and the successful execution of our strategic initiatives, we have once again delivered solid results in the first half of 2019. During the remainder of 2019 we are focused on the acceleration of our domestic network expansion, particularly in Dubai, and the growth of our non-fuel business to provide a superior experience to our customers”.
“Our priorities remain growth and shareholder returns underpinned by our progressive dividend policy. As previously announced, we intend to boost top-line growth in both our fuel and non-fuel businesses, and have targeted in excess of AED 3.67 billion of EBITDA by 2023.”
“ADNOC Distribution has once again demonstrated its ability to realise profitable long-term growth, driven by greater fuel offerings and service, an enhanced convenience store experience and improved quality of service. We are well on our way to making ADNOC Distribution a world-class fuel and convenience retailer and look forward to continuing our journey in the UAE and beyond”, Al Rashdi added.
In April 2019, ADNOC Distribution announced a new dividend policy, representing an increase of 63 per cent in the annual dividend for 2019 (AED 2.39 billion) and 75 per cent for 2020 (AED 2.57 billion) compared to 2018. The company expects to pay the interim dividend of 2019 in October of this year, subject to board approval.