Adnoc reports Dhs910m profit in HI

Adnoc Distribution on Thursday reported that its first half 2020 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Dhs1.422 million, with net profit at Dhs910 million. For the second quarter, underlying EBITDA was Dhs793 million with net profit of Dhs511 million, a company statement said on Thursday.

Although the COVID-19 pandemic caused unprecedented market conditions in the first half of the year, the company remained resilient, delivering a 7.6 per cent 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 30th June, 2020, the company’s liquidity was at Dhs5.2 billion in the form of Dhs2.4 billion in cash and cash equivalents and Dhs2.8 billion in unutilised 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 per cent of volumes for the same period last year. Through the swift introduction of rigorous health and safety measures, the company ensured that stations remained open to make services accessible to the healthcare sector and to keep customers moving on essential journeys. It has also successfully and safely relaunched services during the second quarter, including car wash and oil change, while ensuring stringent health and safety measures are implemented.

Adnoc Distribution also made significant progress in delivering its strategic smart growth plans during the first half of 2020.

WAM