DUBAI: Adnoc Distribution, the UAE’s largest fuel and convenience retailer, reported a 50.1 per cent surge in its fourth-quarter revenue and the company expects positive growth in 2022 amid economic recovery.
Revenue for the three months to the end of December climbed to Dh6.2 billion ($1.68bn), the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. Revenue for the full year rose 29.7 per cent to Dh20.9bn, report agencies.
The UAE’s economy continued to recover from the coronavirus pandemic on the back of Dh388bn worth of stimulus measures as well as a successful vaccination programme.
The Arab world’s second-largest economy is expected to grow 4.6 per cent this year, according to Emirates NBD. That’s slightly higher than the central bank’s estimates which put growth at 4.2 per cent this year.
Adnoc Distribution plans to open 60 to 80 new stations this year, including 20 to 30 new stations in the UAE and 40 to 50 new stations in international markets including Saudi Arabia.
“Domestically, Dubai offers high growth potential for the company to gain market share and is at the heart of our smart growth strategy,” it said.
There are currently 10 stations in various stages of execution in Dubai, with an additional pipeline of 10 more stations approved for further development, it added.
“There is a strong pipeline in Saudi Arabia to expand the network further through different routes i.e. acquisitions, lease agreements and greenfield,” Adnoc Distribution said.
The company expects to invest approximately Dh918 million of capital expenditure this year, to deliver on its growth plans.
“We maintain a robust balance sheet and expect to continue to deliver strong financial performance in the future,” Bader Al Lamki, chief executive of Adnoc Distribution said.
Net profit, however, dropped 32.9 per cent to Dh571m in the fourth quarter. Full-year profit slid 7.4 per cent to Dh2.25bn, according to the statement.
The company’s board recommended a dividend of Dh1.285bn (10.285 fils per share) for the second half of 2021, taking full-year 2021 dividend to Dh2.57bn.
In May, Adnoc Distribution joined the MSCI Emerging Markets index, which is tracked by funds with assets worth billions of dollars. The company was also included in the FTSE Emerging Markets Index in September. The index tracks stocks from emerging markets globally and includes large and medium-cap securities.