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
Closing Bell: TASI sheds points to close at 10,416
RIYADH: Saudi equities closed sharply lower on Sunday, with the Tadawul All Share Index falling 109.44 points, or 1.04 percent, to 10,416.65.
Losses were mirrored across other benchmarks, with the MT30 Index declining 11.31 points, or 0.81 percent, to 1,378.35, while the Nomu Parallel Market Index dropped 186.91 points, or 0.80 percent, to 23,244.02.
Trading activity saw 136 million shares change hands, with a total value of SR2.40 billion ($640 million).
On the stock level, gains were led by Flynas Co., which closed at SR64.10, up SR3.10, or 5.08 percent.
Arabian Mining Co. ended the session at SR88, rising SR4, or 4.76 percent, while Saudi Industrial Export Co. settled at SR2.20, gaining SR0.10, or 4.76 percent.
Raoom Trading Co. also advanced, closing at SR62.75, up SR1.70, or 2.78 percent, and Saudi Cable Co. finished higher at SR148, adding SR3.40, or 2.35 percent, bucking the broader market weakness.
On the losing side, Mutakamelah Cooperative Insurance Co. posted the steepest decline, closing at SR10.54, down SR0.96, or 8.35 percent.
Wafrah Co. for Industry and Development followed, ending at SR19.50, falling SR1.50, or 7.14 percent.
Shares of Consolidated Grunenfelder Saady Holding Co. retreated sharply, closing at SR8.92, down SR0.68, or 7.08 percent, while Leejam Sports Co. slid to SR94, shedding SR6.80, or 6.75 percent.
Saudi Research and Media Group Co. also ended the session notably lower, closing at SR127, down SR9, or 6.62 percent.
On the announcements front, Naqi Water Co. said it has signed an addendum to its previously disclosed contract to purchase a bottled drinking water production line for its new factory in Riyadh, expanding the project scope to include two independent production lines instead of one.
The amendment increases total production capacity to 120,000 bottles per hour, up 20 percent from the previously targeted capacity, enhancing operational flexibility, reliability, and production stability.
The total contract value has been repriced to €9.58 million ($11.28 million), compared with the originally announced €8.54 million, reflecting the expanded scope and the adoption of innovative packaging solutions aimed at reducing plastic usage and lowering production costs.
The company said the financial impact is expected to commence in the fourth quarter of 2026.
Naqi Water Co.’s shares closed at SR57.40, declining SR1.60, or 2.71 percent, following the disclosure.
