Abu Dhabi – Mubasher: The UAE’s largest fuel and convenience retailer, ADNOC Distribution, reported 10% year-on-year higher underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) to AED 698 million over the third quarter of 2019, owing to higher volumes and improved cost efficiencies.
The company’s net profit went down by 1.7% year-on-year to AED 549 million during Q3-19 due on the absence of non-operational inventory gains, the company reported on Thursday.
Total sold fuel volumes rose by 3.9% year-on-year in Q3-19, thanks to improvements in the core retail markets of Abu Dhabi and the Northern Emirates, contributions from new stations in Dubai, and growth in commercial volumes.
Over the first nine months of 2019, the net profit of ADNOC Distribution totalled AED 1.72 billion, 2.3% up from the corresponding period in 2018.
Underlying EBITDA, excluding inventory gains, increased by 10.6% to AED 2.06 billion from January to September 2018 when compared to the same period in 2018.
Commenting on the results, ADNOC Distribution’s acting CEO, Saeed Mubarak Al Rashdi, said, “We have delivered strong results in the third quarter as well as the first nine months of 2019 and have demonstrated our ability to realise profitable growth, supported by an increase in fuel volumes sold, an enhanced convenience store experience and improved quality of service.”
He added, “Looking ahead, we are focused on the acceleration of our domestic network expansion, particularly in the Dubai market, and the growth of our nonfuel business.”
It is worth pointing out that over the six-month period ended 30 June 2019, the net profit reached AED 1.173 billion, versus AED 1.124 billion in the corresponding period a year earlier.
