ABU DHABI - ADNOC Distribution today reported that its first-half 2019 net profit increased by 4.3 percent, to AED1.173 billion, compared with the same period last year.

Free cash flow (EBITDA minus capital expenditures) generation was up 21 percent year-on-year to AED1.345 billion in the first half of 2019. For the second quarter of 2019, EBITDA was AED750 million and net profit was AED 595 million, up 1.3 percent and 2.2 percent, respectively, compared to the second quarter of 2018.

Excluding inventory gains, underlying EBITDA for the first half of 2019 grew by 11 percent compared to H1 2018, to AED1.364 billion, driven by improved cost efficiencies and the positive results of the company’s convenience store revitalisation programme, which is on track and is contributing to improvements in gross margins and an uplift in average basket size by 6.8 percent in the first half of 2019 compared to the first half of 2018.

Non-fuel retail gross profit increased by 10 percent in the first half of 2019 compared to the first half of 2018. The company’s EBITDA margin has also shown continued momentum, reaching 14.4 percent in the first half of 2019, up from 13.2 percent during the same period last year.

Commenting on the results, ADNOC Distribution’s Acting CEO Saeed Mubarak Al Rashdi, said, "Thanks to an unwavering focus on our customers, the strength of our business model, and the successful execution of our strategic initiatives, we have once again delivered solid results in the first half of 2019. During the remainder of 2019, we are focused on the acceleration of our domestic network expansion, particularly in Dubai, and the growth of our non-fuel business to provide a superior experience to our customers." "Our priorities remain growth and shareholder returns underpinned by our progressive dividend policy. As previously announced, we intend to boost top-line growth in both our fuel and non-fuel businesses, and have targeted in excess of AED3.67 billion of EBITDA by 2023," he added.

In April 2019, ADNOC Distribution announced new dividend policy, representing an increase of 63 percent in the annual dividend for 2019 (AED2.39 billion) and 75 percent for 2020 (AED2.57 billion) compared to 2018. The company expects to pay the interim dividend of 2019 in October of this year, subject to board approval.

© Copyright Emirates News Agency (WAM) 2019.