ADNOC Distribution reported its first half 2020 results and despite the COVID-19 pandemic, the Company remained resilient, delivering a 7.6 per cent increase in underlying EBITDA for the first six months of 2020, compared to the first half of 2019.
The first half 2020 underlying EBITDA stood at US$387 million, with net profit at US$248 million. For the second quarter, underlying EBITDA was US$216 million with net profit of US$139 million.
ADNOC Distribution said it maintains a robust balance sheet and remains well-positioned to expand both its domestic and international portfolio in-line with its smart growth strategy. As of 30 June 2020, the company’s liquidity was at US$1.4 billion in the form of US$663 million in cash and cash equivalents and US$750 million in unutilised credit facility.
Following the ease of lockdown and movement restrictions in the UAE, the Company has experienced a recovery of fuel volumes. In July 2020, ADNOC Distribution’s retail fuel volumes recovered to 90 per cent of volumes for the same period last year.
ADNOC Distribution continues to show resilience in operations and, in line with the UAE’s efforts to reopen the economy, has successfully and safely relaunched services during Q2, including car wash and oil change, while ensuring stringent health and safety measures are implemented.
The Company remains on-track to deliver 50-60 new stations by full year 2020, which includes 20-25 in Dubai. Following the announcement of its new ‘On-the-go’ community station concept in November 2019, 17 new ‘On-the-go’ stations were brought into operation in H1 2020, with more coming soon.
Ahmed Al Shamsi, acting chief executive officer of ADNOC Distribution said: “I am very proud of the proactive course of action that ADNOC Distribution has adopted throughout the COVID-19 pandemic. Despite the challenging market conditions, we have continued to ensure access to our services, and introduced increased convenience. We have seen fuel volumes recover in line with the easing of movement restrictions. We have maintained our smart growth strategy to expand our domestic footprint and ensure our network has a wider reach across the Emirates, particularly in the heart of neighbourhood communities, which previously did not have convenient access to refuelling services.”