Adnoc Distribution will open at least 13 new service stations in the UAE and Saudi Arabia in 2018 as part of its expansion plans in the region.
Three new service stations are planned in Dubai, nine in Abu Dhabi, Ajman and Fujairah and at least one site in Saudi Arabia under a franchise agreement, the company said in a statement on Abu Dhabi Securities Exchange.
In addition, the company will also be completing major extensions at three existing stations in Abu Dhabi this year.
Adnoc Distribution, the fuel and retail arm of Abu Dhabi National Oil Company (Adnoc), was listed on Abu Dhabi Securities Exchange on December 13 with the stock opening at Dh2.90 compared to the final IPO price of Dh2.50, a 16 per cent increase.
The company raised Dh3.1 billion after it offered 10 per cent of its shares through an initial public offering (IPO).
“Improving service, choice and convenience for our customers is our top priority for 2018, as we transform Adnoc Distribution into a more commercially minded and performance-driven company,” said acting CEO Saeed Mubarak Al Rashdi.
“This year we will deliver new stations quicker and at a lower cost while enhancing our customers’ experience and maintaining our 100 per cent focus on health and safety.”
Adnoc Distribution operates 360 retail fuel stations in the UAE as of December 31, 2017 along with a number of convenience stores. For the first time, the company would be opening its service stations in Dubai and Saudi Arabia in 2018.
According to the company, capital expenditure on a per site basis has been reduced in 2018 and capex on some future stations has been cut by as much as 40 per cent, through a rigorous approach to value engineering,
In the first quarter alone, four new stations and three major extensions will open in Abu Dhabi and Ajman including on highways like the Shaikh Mohammad Bin Rashid Al Maktoum Road, which links Dubai with Abu Dhabi city.
Source: Gulf News