ADNOC Distribution reported that net profit for the fourth quarter of 2019 was US$135 million, an increase of 11.3 per cent compared to same period last year.
EBITDA for the fourth quarter of 2019 was US$179 million, an increase of 6.5 per cent compared to the same period last year, driven by a solid operational performance in both fuel and non-fuel businesses. Total fuel volumes sold increased by 2 per cent in the fourth quarter of 2019 compared to the fourth quarter of 2018, driven by a continued recovery in the company’s retail business, growth in its corporate business and supported by new marketing initiatives.
ADNOC Distribution’s acting CEO, Ahmed Al Shamsi, said: “We have delivered strong results in the fourth quarter as well as for the full year 2019. We continue to transform ADNOC Distribution into a world-class, customer-focused, commercially driven company with a determined focus on driving profitable growth. As we sharpen our focus on customer experience and pursue growth opportunities, both domestically and internationally, we will expand all our distribution channels to reach larger market segments and sustain volume growth. Finally, OPEX reduction and optimisation of CAPEX also remain key priorities”.
For the full year 2019, net profit increased to US$604 million, an increase of 4.2 per cent compared to 2018. ADNOC Distribution continues to focus on realising cost efficiencies, which has contributed to 8.6 per cent reduction in operating expenses for 2019 compared to 2018.
In a press statement, ADNOC Distribution said its priorities remain customer focus, profitable growth and shareholder returns underpinned by a progressive dividend policy. To that end, the company’s Board of Directors has proposed a cash dividend of USD 325 million (9.55 fils per share) for the second half of 2019, which will be submitted to the Company’s shareholders for approval at the Annual General Assembly Meeting scheduled on 31st March 2020.