Adnoc Distribution's 9-month net profit rises 6%

Adnoc Distribution's 9-month net profit rises 6%
Adnoc Distribution's net profit for the first nine months of the year rose more than 6 per cent to reach Dh1.68 billion ($457.8 million) due to the recovery of fuel volumes amid the ongoing post-pandemic growth in the UAE.

Revenue for the nine-month period ending in September rose about 23 per cent to Dh14.7bn.

The company credited its overall performance in the first nine months to the recovery in fuel volumes in September, which rose more than 6 per cent compared to the same period last year, driven by increase in retail fuel volumes. The ease in travel restrictions, as well as widespread Covid-19 vaccination efforts across the country and the reopening of schools and offices, also contributed to higher fuel volumes.

"We maintain a robust balance sheet and continue to bring new innovations to the market, which demonstrate exceptional customer experience. Looking ahead, we expect our growth trend to accelerate driven by strengthening economic recovery and an increase in visitors heading into [the] holiday season, Expo 2020 and a number of sporting events being hosted by the UAE," said Bader Al Lamki, chief executive at Adnoc Distribution.

"The green shoots of recovery are here and accelerated growth is clear to see," he added.

The UAE's largest fuel retailer, however, saw its third-quarter net profit decline 21 per cent to reach Dh529m compared to the same period last year before the vaccination roll out and easing of global travel restrictions.

Revenue for the three-month period rose 34 per cent to reach Dh5.4bn.

Adnoc Distribution has a total network of 459 fuel stations across the UAE as of the end of September, with 31 stations in Dubai contributing to incremental volumes.

The company has also received clearance to acquire 35 stations in Saudi Arabia, with 10 new stations added as of November 8. It is set to open up to 45 stations in the kingdom this year.
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