ADNOC Distribution today announced its first quarter 2023 results, reporting a 5.5 per cent year-on-year and 19.4 per cent Quarter-on-Quarter increase in net profit excluding inventory movements to AED 551 million, driven by strong performance and efficiency improvement measures across all operations and businesses.
The company continued to maintain a strong balance sheet by recording a solid Free Cash Flow of AED 1,048 million during the period. Total fuel volumes for the UAE and KSA increased by 8 per cent year-on-year during Q1 2023 supported by the continued rebound in economic activity and network expansion across the UAE. Retail fuel volumes – which account for c. 65 per cent of sales – increased by 5.5 per cent year-on-year.
Additionally, corporate fuel volumes witnessed strong growth during the first quarter of the year with a 21 per cent increase compared to the same period last year, mainly driven by the Company’s efforts to strengthen its commercial business portfolio through its business development and Customer Relationship Management programs.
Eng. Bader Saeed Al Lamki, CEO, of ADNOC Distribution, commented: “We focused our efforts during the first quarter of 2023 on streamlining operations across our local and international network while ensuring our cross-border teams were well-equipped to sustain the delivery momentum of our growth trajectory through 2023 and beyond. At the same time, we maintained a healthy cash flow generation and strong financial position to deliver incremental shareholder value through efficient capital allocation.”
ADNOC Distribution continued to expand its local footprint by opening six new service stations during the first quarter of the year, reaffirming its leadership across the UAE fuel retail sector with a network of 507 retail fuel stations nationwide as of 31 March 2023. It remains well-positioned to achieve its full-year network expansion targets of 25 to 35 new service stations.
The Company further advanced its international expansion in February 2023 by completing the acquisition of a 50 per cent stake in TotalEnergies Marketing Egypt, one of the top four fuel retail operators in Egypt.
The partnership includes a diversified downstream portfolio of 240 fuel retail stations, 100+ convenience stores, 250+ lube changing stations, and car washes, as well as wholesale fuel, aviation fuel, and lubricant operations.
Since then, TotalEnergies Marketing Egypt has successfully expanded its aviation fuels business by winning the right to supply aviation fuel to Etihad Airways for flights fuelled in Cairo. The Company plans to open the first ADNOC flagship service station in Cairo during Q2 2023.
