ADNOC Distribution announced its third quarter results which showed a resilient and steadfast focus on smart growth, despite continued market uncertainty caused by the COVID-19 pandemic.
The retail arm of ADNOC, which is listed on the Abu Dhabi Securities Exchange, reported that its underlying EBITDA for the first nine months of 2020 grew to AED 2,554 million, with net profit of AED 1,581 million. For the third quarter, underlying EBITDA was AED 1,132 million, while net profit stood at AED 671 million.
ADNOC Distribution maintains a robust balance sheet and remains well-positioned to expand both its domestic and international portfolio in-line with its smart growth strategy.
Since the end of June 2020, and following the initial COVID impact on transport mobility, ADNOC Distribution’s retail fuel volumes continue to show steady recovery. Volumes for Q3 2020 increased by 24% as compared to the previous quarter.
The Company accelerated the delivery of its strategic smart growth plans during the first nine months of 2020. Thirty-seven new stations were opened in the UAE as at the end of September 2020, 11 of which were in Dubai. The Company said it remains on-track to deliver 50-60 new stations by full year 2020, of which 20-25 will be in Dubai.
Ahmed Al Shamsi, Acting Chief Executive Officer of ADNOC Distribution said: “ADNOC Distribution’s third-quarter results have continued to advance our strategic priorities of steady and sustainable growth, enhanced customer experience, and attractive capital returns for our shareholders. Our continued focus on innovation and accelerating our digital strategy, combined with steady recovery of fuel volumes, has bolstered our results throughout the first nine months of 2020. We continue to ensure our network has a wider reach across all Emirates, particularly in the heart of neighborhood communities, which previously did not have convenient access to refueling services. We maintain significant capacity to deploy capital through a disciplined investment strategy aimed at continuing our efforts to expand our fuel station network, with a focus on the Dubai market, as well as investing in our non-fuel and international business expansion.”
On 14 September 2020, ADNOC announced that it had successfully completed a placement of 1.25 billion of its shares in ADNOC Distribution with institutional investors. This represents 10% of ADNOC Distribution’s total share capital, and increases the Company’s free float to 20%, broadening the Company’s shareholder base and allowing for greater liquidity of its shares on the Abu Dhabi Securities Exchange. This transaction leverages significant investor demand for ADNOC Distribution shares following a robust performance with a resilient dividend since its initial public offering in 2017.