DUBAI: ADNOC Distribution, the UAE’s largest fuel retailer, on Monday said that its six-month profit to June rose 18 percent to 1.124 billion dirhams from the same period last year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 30 percent to 1.443 billion dirhams during the same period, while gross profit was up 24 percent to 2.609 billion dirhams. Free cash-flow generation – or EBITDA less capital expenditures – rose a hefty 72 percent to 1.111 billion dirhams in the first half of the year.
Quarterly net profit to June also rose 24 percent to 579.86 million dirhams from 466.09 million dirhams of the same quarter of 2017, the company said in a statement. Gross profit for the three months was went up 33 percent to 1.423 billion dirhams, with the company’s performance ‘driven by higher fuel margins in retail and corporate segments combined with a more efficient cost base,’ ADNOC Distribution noted in its report.
ADNOC Distribution, which listed and started trading on the Abu Dhabi Securities Exchange on December 13, reported a minor decline in total fuel volumes sold in the first half to 4.763 billion liters, one percent lower from the same period last year.
“ADNOC Distribution’s second quarter and half-year results reflect our continued progress towards delivering on our strategy. We have made progress in all three of our strategic pillars: fuel, non-fuel and cost-efficiency,” ADNOC Distribution Acting CEO Saeed Mubarak Al-Rashdi said in the statement. “We are on track to hit our declared target of achieving approximately 190 million dirhams in cost savings in 2018.”
“Notably, we have been able to achieve these costs savings while continuing to grow our service station network, and without impacting safety, quality and our customer experience,” he said.
ADNOC Distribution opened five new refueling stations during the first half, and 8 more are expected to be opened before the year ends. It also rolled out the ADNOC Flex scheme, which provides customers with a choice in how and where they refuel, 152 stations in Abu Dhabi during the second quarter,
Operationally, ADNOC Distribution made important progress as it transforms the business into a more customer-centric organization and expands its fuel and non-fuel offerings. Initiatives delivered during the second quarter include the implementation of ADNOC Flex … the launch of two new retail brands – Géant Express convenience stores and Oasis Café coffee shops and bakeries; and the opening of eight new service stations and ten new convenience stores since last year’s second quarter, the company said.
ADNOC Distribution reports 18% rise in first-half profit
ADNOC Distribution reports 18% rise in first-half profit
Work suspended on Riyadh’s massive Mukaab megaproject: Reuters
RIYADH: Saudi Arabia has suspended planned construction of a colossal cube-shaped skyscraper at the center of a downtown development in Riyadh while it reassesses the project's financing and feasibility, four people familiar with the matter said.
The Mukaab was planned as a 400-meter by 400-meter metal cube containing a dome with an AI-powered display, the largest on the planet, that visitors could observe from a more than 300-meter-tall ziggurat — or terraced structure —inside it.
Its future is now unclear, with work beyond soil excavation and pilings suspended, three of the people said. Development of the surrounding real estate is set to continue, five people familiar with the plans said.
The sources include people familiar with the project's development and people privy to internal deliberations at the PIF.
Officials from PIF, the Saudi government and the New Murabba project did not respond to Reuters requests for comment.
Real estate consultancy Knight Frank estimated the New Murabba district would cost about $50 billion — roughly equivalent to Jordan’s GDP — with projects commissioned so far valued at around $100 million.
Initial plans for the New Murabba district called for completion by 2030. It is now slated to be completed by 2040.
The development was intended to house 104,000 residential units and add SR180 billion to the Kingdom’s GDP, creating 334,000 direct and indirect jobs by 2030, the government had estimated previously.
(With Reuters)
