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Abu Dhabi’s ADNOC Distribution reported a Q1 2024 net profit of $165 million before tax, up 13% year-on-year (YoY), driven by growth in fuel volumes, the company stated. The provision for the UAE Corporate tax saw the net profit come to $150 million, indicating a 2% YoY uptick.
The company’s Q1 EBITDA increased by 18% YoY to $248 million, as total fuel volumes increased by 17% year-on-year, driven by growth in both retail and commercial segments, the company said.
The GCC region saw a 9% increase, fuelled by increased traffic across network, sustained economic growth, ongoing network expansion, and a higher contribution from international operations in Saudi Arabia. The company is looking at international expansion to fuel growth.
Non-Fuel-Retail transactions grew by 7% YoY, supporting an increase in NFR Gross profit of 16% YoY.
Engineer Bader Saeed Al Lamki, CEO of ADNOC Distribution stated investments in Artificial Intelligence are delivering growth with the company’s Fuel Demand AI Model projected to prevent potential lost sales totalling over $27 million in a five-year period.
During the last Annual General Meeting in March, ADNOC Distribution shareholders approved a five-year dividend policy, setting an annual dividend of $700 million or a minimum of 75% of net profit, whichever is higher. This policy provides long-term visibility on returns and potential upside.
The planed CAPEX for 2024 is set between $250 million and $300 million, 70% of which is earmarked for growth, while the company said it has already invested $46 million in Q1 2024.
(Writing by Bindu Rai, editing by Seban Scaria)
