ADNOC Distribution reported that its first half 2020 underlying EBITDA stood at $387 million (AED 1,422 million), with net profit at $247 million (AED 910 million). For the second quarter, underlying EBITDA was $216 million (AED 793 million) with net profit of $139 million (AED 511 million).
Although the COVID-19 pandemic caused unprecedented market conditions in the first half of the year, the company delivered a 7.6% increase in underlying EBITDA for the first six months of 2020, compared to the first half of 2019.
ADNOC Distribution maintains a robust balance sheet and remains well-positioned to expand both its domestic and international portfolio in-line with its smart growth strategy. As of 30 June 2020, the company’s liquidity was at $1.42 billion (AED 5.2 billion) in the form of $650 million (AED 2.4 billion) in cash and cash equivalents and $760 million (AED 2.8 billion) in unutilized credit facility.
Following the ease of lockdown and movement restrictions in the UAE, the company has experienced a recovery of fuel volumes. In July 2020, ADNOC Distribution’s retail fuel volumes recovered to 90% of volumes for the same period last year.
While keeping rigorous health and safety at the core of its operations, the company made significant progress in delivering its strategic smart growth plans during the first half of 2020. Twenty-five new stations were opened in H1, including 18 in Q2. The company remains on-track to deliver 50-60 new stations by full year 2020, which includes 20-25 in Dubai. Following the announcement of its new ‘On-the-go’ community station concept in November 2019, 17 new ‘On-the-go’ stations were brought into operation in H1 2020, with more coming soon.
Ahmed Al Shamsi, Acting Chief Executive Officer of ADNOC Distribution said: “I am very proud of the proactive course of action that ADNOC Distribution has adopted throughout the COVID-19 pandemic. Despite the challenging market conditions, we have continued to ensure access to our services, and introduced increased convenience. We have seen fuel volumes recover in line with the easing of movement restrictions. We have maintained our smart growth strategy to expand our domestic footprint and ensure our network has a wider reach across the Emirates, particularly in the heart of neighborhood communities, which previously did not have convenient access to refueling services.”
Al Shamsi continued: “Our ongoing focus to upgrade our digital solutions, particularly contactless payments, and widen our portfolio of products and services to expand our customer reach, has proven to be a success. We look forward to building on this through the introduction of further innovative products and services that allow our customers to enjoy ever-increasing levels of convenience that also encourage customer loyalty.”