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Abu Dhabi’s ADNOC Distribution said on Tuesday its third quarter net profit fell to 529 million dirhams, a drop of more than 21 percent compared to Q3 2020, due to lower fuel margin.
In a statement to Abu Dhabi Securities Exchange, the UAE's largest fuel retailer said revenue for the period was 5.4 billion dirhams, 34 percent higher year-on-year due to higher selling prices, growth in retail fuel volumes, as well as due to the growth in non-fuel revenues.
For the nine-month period ended September 30, the company’s net profit was 1.7 billion, 6 percent higher compared to 9M 2020.
The distributor said that the third quarter saw increase in fuel volumes as the travel restrictions eased within the country and schools and offices returned to in-person attendance. Volumes rose 10.6 percent in September compared to August.
CEO Bader Saeed Al Lamki said: “The green shoots of recovery are here and accelerated growth is clear to see.”
“We will continue to deliver on our expansion plans, domestically and internationally, which positions us as an even stronger fuel and convenience retail leader in the UAE and cements our place as a global fuel retailer.
He said the growth trend would be accelerated by strengthening economic recovery and an increase in visitors heading into holiday season, Expo 2020 and a number of sporting events being hosted by the UAE.
ADNOC Distribution plans to continue its expansion strategy both within UAE and in Saudi Arabia. It plans to open 40-45 new stations in the kingdom in 2021.
The company expects to pay a full-year dividend of 2.57 billion dirhams (20.57 dirhams per share).
(Writing by Brinda Darasha; editing by Seban Scaria)
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