ADNOC Distribution reported strong first-half results for 2022, recording an EBITDA of AED 1.99 billion (H1 2021 AED1.53 billion) and net profits of AED 1.56 billion compared to 1.15 billion for the same period last year.
The company saw year-on-year growth in total fuel volumes, up 9% in H1 2022 compared to H1 2021, while the company's corporate fuel volumes recorded sustained growth with a 27% year-on-year increase, underpinned by the UAE's economic growth and driven by the new corporate fuel sales agreements confirmed last year.
Financial Summary Source: ADNOC
Non-fuel business also continued to see momentum with customer-centric initiatives, increased traffic at stations and higher food and beverage sales, resulting in a 10% increase in gross profit for H1 2022 compared to the same period in 2021.
The company delivered on its growth strategy throughout H1 2022, with the opening of 12 new stations in the UAE, of which four were in Dubai, taking its domestic network to 472 (Dubai: 35 stations).
ADNOC Distribution's 2022 dividend policy is set at a minimum of AED2.57 billion, offering an annual dividend yield of 4.8% (at a share price of 4.32 as of 5 August 2022). The company expects to pay a minimum of AED1.285 billion for the first six-month dividend of 2022 (10.285 fils per share) in October of this year, followed by the second six-month dividend of 2022 (10.285 fils per share) in April 2023, subject to the discretion of the board and shareholders' approval.
The company's dividend policy for the years thereafter sets a dividend equal to at least 75% of distributable profits. The policy recognizes the company's strong financial position and cash-flow generation ability going forward, supporting growth opportunities and sustaining attractive shareholder distribution.
Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said, "In the first half of 2022, we have maintained a strong financial and operational performance while integrating cutting-edge solutions to our customer-focused offerings. We have demonstrated a healthy performance, with consistent growth and a strong balance sheet to support further growth investments and to sustain attractive capital distribution to our shareholders.
In Saudi Arabia, the company added 26 new stations in the first half of the year, taking its network in the Kingdom to 66. The company's total network stands at 538 stations (as of 30 June 2022), and it remains on track to deliver its target of 60-80 new sites in 2022.
In H1 2022, the total number of export network countries of ADNOC Distribution's VOYAGER lubricants portfolio also rose to 21 markets worldwide. The company also launched the ADNOC VOYAGER Green Series, an alternative 100% plant-based lubricant range for petrol and diesel engines.
The ADNOC Rewards loyalty program, launched in 2019, recorded a milestone in H1 2022 with over 1 billion ADNOC Rewards points redeemed in a single calendar month. The program now has over 1.4 million enrolled members, with 83 partners providing deals and discounts from some of the UAE's best leisure and entertainment brands through the ADNOC Distribution app.
