ADNOC Distribution, listed on the Abu Dhabi Securities Exchange, announced on Thursday its strong financial and operational results for the first quarter of 2024, recording an 18 percent year-on-year increase in earnings before interest, tax, depreciation and amortization (EBITDA) to $248 million, confirming the company’s progress towards achieving the goals of its new five-year strategy.
ADNOC Distribution said in a disclosure to the Abu Dhabi Securities Exchange, which was reviewed by Sky News Arabia, that this progress in performance came after the continued growth witnessed by the fuel and non-fuel retail sectors during the first quarter, during which ADNOC Distribution developed several key initiatives, including the development of more than 20 initiatives supported by artificial intelligence to accelerate growth and enhance operational efficiency, such as the Fill & Go service and a smart system that uses the latest technologies to accurately predict the level of future demand for fuel.
The statement showed that the quantities of fuel sold increased by 17 percent, and non-fuel retail transactions increased by 7 percent on an annual basis, confirming the continued growth momentum in the fuel and non-fuel retail sectors.
Commenting on the results, Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “Our strong first quarter results, with 18 per cent growth in EBITDA, are a testament to the effectiveness of the company’s recently announced five-year strategy, which focuses on local growth, international presence and future-proofing our business. We are confident that we are well positioned to achieve our operational targets by 2028, expanding ADNOC Distribution’s network to 1,000 service stations, increasing the number of electric vehicle charging points to at least 500 fast and ultra-fast charging points, and increasing non-fuel retail transactions by 50 per cent and the number of convenience stores by 25 per cent.”
“We continue to integrate AI technologies, which are an essential part of our strategy. They have contributed to achieving tangible results across our business sectors. For example, we are using our AI-based system to predict future demand levels to improve the management of fuel delivery across our network of stations, using specialized analytics. This system is expected to contribute to reducing potential sales losses by more than $27 million over 5 years,” added the CEO of ADNOC Distribution.
Financial performance
The company witnessed a double-digit growth in earnings before interest, tax, depreciation and amortization compared to the same period last year, as increased shopping traffic across its network of stations contributed to boosting fuel volumes sold and non-fuel retail transactions.
These profits increased during the first quarter of 2024 by 18 percent year-on-year to reach $248 million.
Net profit amounted to $150 million, compared to $146 million in the first quarter of 2023, despite the impact of the recently imposed corporate tax in the UAE.
Net profit increased by 13 percent to $165 million after excluding the impact of this tax.
The company achieved quarterly revenues of about $2.4 billion (about AED 8.75 billion), a growth rate of 10 percent, compared to $2.18 billion (about AED 7.99 billion) it had recorded during the same period last year.
The company also witnessed a strong growth in its total non-fuel profits by 16 percent year-on-year to reach $55 million.
The company maintained a strong balance sheet with net debt to EBITDA ratio of 0.50x, strengthening its financial position and enabling the company to invest in growth and generate attractive returns for shareholders.
