ADNOC Distribution achieved net profits of 631 million dirhams during the first quarter of this year, an increase of 57.8% compared to the same period last year, driven by improved margins and reduced operating expenses, while EBITDA reached 817 million dirhams, with a growth 46.9%. The company stated, in a statement yesterday, during which it announced the financial results for the first quarter of 2021, that it recorded basic profits before deducting interest, tax, depreciation and amortization, amounting to 740 million dirhams, while the total profit amounted to 1.32 billion dirhams, a growth of 19.4% compared to the same period of the year. 2021, while the company maintained strong cash flow generation, with free cash flow reaching 835 million dirhams, an increase of 56.7%. Earnings per share increased during the current year by 57.9%, to reach 0.050 (dirhams / share), compared to 0.032 (dirhams / per share) in the same period last year. The company’s fuel distribution segment recorded a strong operating performance, with total retail fuel sales revenue increasing by 12.6% year-on-year in the first quarter, driven by higher margins. And «ADNOC Distribution» reduced operating expenses «excluding consumption expenses» by 6.5% compared to the same period of the previous year. This comes within the framework of the company’s endeavors to enhance operational efficiency, as the company has succeeded in reducing operating expenses despite its expansion of the network of retail stations. The reduction in operating expenses is thanks to the initiatives taken by the management to improve operating expenses in all sectors of the company.
At the end of the first quarter of this year, ADNOC Distribution maintained its strong financial position with a strong balance sheet, which qualifies it to continue its efforts to expand locally and internationally in line with its policy of smart growth. The company’s liquidity amounted to 5.1 billion dirhams, as of March 31, 2021, including 2.3 billion dirhams in the form of cash and its equivalent, and 2.8 billion dirhams in the form of unused credit facilities.
ADNOC Distribution continued to implement its smart growth strategy with the aim of providing local and international customers and communities with retail fuel services based on modern technologies. The company opened four new service stations in the UAE, including two “on-the-go” stations. , Which is designed to provide neighborhood fueling and convenience store service.
The company also intends to accelerate its achievements and adhere to its plans to open 70 to 80 new stations in the UAE and Saudi Arabia by the end of this year, as 30 to 35 new stations are expected to open in the country.
In line with the company’s ambitious strategy to boost non-oil sales, ADNOC Distribution invested in providing a modern and modern digital experience to its customers. During the first quarter, a total of 14 ADNOC Oasis stores were renovated.
The Acting CEO of ADNOC Distribution said: “We achieved an important milestone during the first quarter of 2021 by vaccinating all our frontline employees, and we are proud of their constant commitment to the highest health, safety and environment standards. In addition, the company continued to consolidate the successes achieved in 2020, and recorded a strong financial performance, which provided the company with ample cash liquidity that would enable it to take advantage of future growth opportunities, whether in the internal or external markets.
During its General Assembly meeting held on March 16, 2021, ADNOC Distribution shareholders approved total dividends for the fiscal year 2020, amounting to 2.57 billion dirhams, 20.57 fils per share, which represents an increase of 7.5% compared to the dividends distributions for the year 2019.
As a result of the strong performance and continuous growth of the company, the company was able to set a gradual dividend policy of 2.57 billion dirhams for the current year, and a minimum of 2.57 billion dirhams for the year 2022, compared to a minimum dividend of 75% of the distributable profits for the year 2022, as in Previous policy, which provides shareholders with transparent returns through April 2023.
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