Adnoc Distribution, the UAE's largest fuel and convenience store retailer, has reported a net profit of AED2.4 billion ($635 million) for the full year 2020 while its underlying ebitda stood at AED3.6 billion ($980 million).
The net profit for the fourth quarter of 2020 stood at AED851 million, with underlying ebitda (excluding one-offs and inventory gains/losses) of AED1.1 billion, it stated.
Adnoc Distribution pointed out that it has maintained a strong balance sheet as of December 31, 2020, and remained well-positioned to expand both its domestic and international portfolio in-line with its smart growth strategy, as well as meet its dividend commitments.
The company’s liquidity was at AED5.6 billion in the form of AED2.8 billion in cash and cash equivalents and AED2.8 billion in unutilized credit facilities, it said.
Following a 24 percent quarter-on-quarter increase in total fuel volumes in Q3 2020, volumes for the fourth quarter of 2020 increased 2 percent compared to the third quarter of 2020.
During the year, Adnoc Distribution opened 64 new stations, ahead of its guidance to the market of 50-60 new stations; a rate of delivery ten times that of 2019.
There was a significant increase in its network in Dubai in 2020, with 20 new service stations opened in the emirate.
The company also added a sizeable number of new ‘ADNOC On the Go’ stations. A total of 38 were opened in 2020 across the country, it said.
Also, a total of 100 Adnoc Oasis convenience stores were refurbished throughout the year, above the market guidance of 80-90, it added.
Acting CEO Ahmed Al Shamsi said: "We set ambitious growth targets for 2020 and it is testament to our resilient business model that we not only met, but exceeded guidance in terms of both new station openings and convenience store refurbishments."
"Adnoc Distribution is well placed to continue building on recent success, in the UAE and beyond, in the year ahead and remains on track to reach ebitda target of at least $1 billion by 2023. We will continue to seek further international expansion opportunities and unlock incremental value for shareholders," stated Al Shamsi.
In addition to its growth in the UAE, international expansion was accelerated with the announcement that the company had signed a definitive agreement on December 30, to acquire 15 service stations in Saudi Arabia, he added.