ADNOC Distribution today reported that its first quarter 2019 net profit increased by 6.6 percent to US$157 million, compared with the same period last year.
Excluding inventory gains recorded in Q1 2018, the 2019 first quarter’s underlying EBITDA grew by 16.5 percent compared to Q1 2018 to AED733 million. Free cash flow generation grew by 24.9 percent year-on-year to $187 million. Profitability has also shown continued momentum, with Q1 2019 EBITDA margin reaching 15.4 percent, up from 13.6 percent in Q1 2018.
ADNOC Distribution recorded Q1 2019 earnings per share of $0.013 up by 29.6 percent, compared to Q4 2018 and by 6.6 percent year-on-year. Moreover, ADNOC Distribution continues to maintain a low net debt to EBITDA ratio of 0.35x at 31st March 2019.
ADNOC Distribution’s UAE network reached 379 retail fuel stations, with the addition of three new stations during Q1 2019. The company’s convenience store network reached 252, including 14 Geant Express convenience stores.
Non-fuel gross profit increased by 9.2 percent, compared to Q1 2018.
convenience store revitalisation programme, which offers customers an improved shopping experience, is on track and is contributing to improvements in gross margins and an uplift in average basket size by 13.2 percent, compared to Q1 2018.
Commenting on the results, ADNOC Distribution’s Acting CEO Saeed Mubarak Al Rashdi, said, “Thanks to an unwavering focus on our customers and the resilience of our business model, we are off to a solid start in 2019. Our first quarter results confirm our ambition to sustain strong financial performance through operational excellence and premium customer service. ADNOC Distribution has once again demonstrated its ability to realise profitable long-term growth, driven by greater fuel offerings and service, an enhanced convenience store experience and improved quality of service.”
During the company’s general assembly meeting held on 4th April, 2019, ADNOC Distribution announced an enhanced dividend policy, reflecting its Board of Director’s confidence in the company and its commitment to reward shareholders for their trust in the company.
The new progressive dividend policy represents an increase of 63 percent for 2019 ($650 million) and 75 percent for 2020 ($700 million) compared to 2018, resulting in a 7.3 percent dividend yield for 2019, based on yesterday’s closing share price of AED2.60 per share.