WAM – ADNOC Distribution Company announced its financial results for the first half of 2018 with strong earnings growth indicating that it is moving in line with the growth plan, which focuses on increasing margins and improving operational cost efficiency across its business.
In the first six months ended June 30, 2018, ADNOC posted a total profit of AED 2.608 billion, an increase of 24 per cent over the same period last year. Earnings before tax, amortization and amortization increased to AED 1.443 billion, a 30 per cent increase.
Net profit reached AED 1,124 billion, an increase of 18 per cent. The company also made strong progress in enhancing its free cash flow by 72 per cent year on year, up to AED1.111 billion as of 30 June this year.
The company's net profit rose by 24 per cent compared to the second quarter of 2017 and gross profit rose by 33 per cent, bringing the gross profit margin to 25 per cent, compared to 22 per cent for ADNOC during the second quarter of the year. In the second quarter of last year.
The company's financial performance during the first half of 2018 remained strong despite market challenges and total fuel sales during the period were 4.763 million liters, a slight 1% decrease compared to the same period last year.
Saeed Mubarak Al Rashidi, Acting CEO of ADNOC Distribution, said: "The results of the second quarter and the first half of 2018 confirm the success of our efforts to achieve the strategy. We have made good progress in supporting the three pillars of our strategy, And initiatives to enhance financial efficiency.
"ADNOC Distribution continues to deliver strong financial results supported by improved profit margins and enhanced financial efficiency of operational costs as we move confidently towards our stated goal of saving AED 190 million in 2018 by cutting costs.
"As a newly listed company on the Abu Dhabi Securities Exchange, ADNOC Distribution continues to adhere to the highest levels of discipline in terms of capital investments, which has significantly reduced the capital expenditure budget compared to 2017. We have achieved this while expanding our network of stations and without any impact on safety Or quality of services and customer experience. "
"ADNOC Distribution witnessed a strong overall performance in the first half of 2018. The retail sector's contribution to EBITDA increased by 39 per cent and we achieved a 5 per cent increase in fuel sales to companies," he said. And we are confident that the company will be able to implement the business plan for 2018 and beyond, as we are steadily moving towards solidifying ADNOC's position as a global fuel and retail company. "
ADNOC Distribution has made significant progress in increasing its customer focus and expanding its fuel and other products and services. During the second quarter, ADNOC Distribution was able to implement a number of initiatives, including the launch of Flex, which allows customers to choose a refueling option through premium service or service As well as the launch of two new retail brands: Geant Express, Oasis Café and Bakery, and 8 new service stations and 10 retail outlets across the UAE since the second quarter of last year.
In the second quarter, ADNOC Distribution has installed 7000 additional RFID-enabled chips, bringing the total number of chipsets installed to 180,000 units to ADNOC's portfolio of world-class payment solutions that offer customers the ability to supply Fuel faster and more easily.
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