Net profit for ADNOC Distribution in Q2 2024 reaches 624m

ADNOC Distribution, one of the leading fuel distribution companies in the UAE, recently announced its financial results for the second quarter of 2024. The company reported a strong performance with a 15.0 per cent year-on-year increase in EBITDA to 7 million and a net profit of AED 624 million.

When excluding the impact of the UAE corporate tax, the net profit would have seen an even more impressive increase of 24.5 per cent year-on-year to AED 686 million (7 million). This growth in profits is a clear indicator of the company’s solid financial health and strategic management.

The stellar financial performance in Q2 2024 can be attributed to various factors, including higher fuel volumes, increased contributions from international operations, and growth in the non-fuel retail business. ADNOC Distribution has been successful in expanding its market share both domestically and internationally, which has positively impacted its bottom line.

One of the key drivers of the company’s financial success in the second quarter was the growth in non-fuel retail gross profit, which increased to AED 205 million ( million). This growth was fueled by contributions from the company’s expanding car wash business, which has seen success due to new initiatives such as tunnels and upgraded automatic car washes. Additionally, enhanced convenience store offerings and other car services have also played a crucial role in driving revenue in this segment.

Furthermore, ADNOC Distribution has made significant progress in cost optimization, with AED 36 million ( million) in like-for-like OPEX savings achieved in the first half of 2024. This focus on efficiency and cost savings has further bolstered the company’s financial performance and positioned it for sustained growth in the future.

Overall, ADNOC Distribution’s financial results for the second quarter of 2024 reflect a company that is well-positioned for continued success in the fuel distribution and retail business. With a strong focus on operational excellence, cost efficiency, and strategic growth initiatives, the company is poised to maintain its leadership position in the market and deliver value to its shareholders.

In conclusion, ADNOC Distribution’s strong financial performance in the second quarter of 2024 is a testament to the company’s resilience and ability to navigate challenging market conditions. With a commitment to innovation, operational excellence, and customer satisfaction, the company is well-positioned for continued success in the future.