PHOTO
Abu Dhabi’s ADNOC Distribution reported a 5% year-on-year (YoY) drop in full year 2023 net profit to 2.60 billion dirhams ($708 million) due to lower inventory gains during the year versus the year-ago period.
The results were slightly above analysts’ mean profit estimates of AED2.50 billion, according to LSEG data.
In a statement to the Abu Dhabi Securities Exchange (ADX) on Wednesday, the UAE's largest fuel retailer said revenue rose 8% YoY to AED34.6 billion driven higher fuel volumes sold, and higher non-fuel retail segment contribution, partially offset by lower pump prices as a result of lower oil prices in 2023 compared with 2022.
The company had a free cash flow of AED4 billion, up 19% YoY.
Bader Saeed Al Lamki, CEO of ADNOC Distribution said the company's board has approved a new five-year strategy for 2024-28.
"It includes optimizing existing assets to improve our profitability, doubling down on non-fuel retail, and generating new revenue streams offered by energy transition to future-proof our business and increase customer satisfaction."
The company also proposes to distribute a dividend of AED1.28 billion, equivalent to 10.285 fils per share, for the second half of 2023.
(Reporting by Brinda Darasha; editing by Seban Scaria)
