ADNOC Distribution Delivers Strong Q1 Earnings Fueled by Rising Demand

ADNOC Distribution, a leading UAE fuel and convenience retailer, announced impressive financial results for the first quarter of 2024. Highlighted by an 18% year-on-year increase in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), the company's performance demonstrates continued momentum following a successful 2023.

The robust Q1 showing underscores ADNOC Distribution's ability to capitalize on growing demand within the domestic and international markets it serves. The company's EBITDA climbed to $248 million in Q1 2024, compared to $210 million during the same period in 2023. This significant growth reflects a rise in customer traffic across the company's vast network of service stations, leading to a surge in both fuel and non-fuel sales.

ADNOC Distribution's non-fuel business also witnessed a notable uptick, with gross profit increasing by a healthy 16% year-on-year to $55 million. This segment encompasses various convenience store offerings, including food and beverage items, automotive care products, and other in-demand merchandise. The expansion of non-fuel revenue streams represents a strategic move by ADNOC Distribution to diversify its income and cater to the evolving needs of its customers.

The company's financial performance remained positive even after accounting for the recently implemented UAE Corporate Tax. Despite this new tax burden, ADNOC Distribution reported a net profit of $150 million in Q1 2024, exceeding the $146 million earned during the same period in 2023. Notably, when excluding the impact of the corporate tax, net profit exhibited an even stronger growth trajectory, rising by a substantial 13% year-on-year to $165 million.

ADNOC Distribution's positive financial results come amidst the backdrop of its recently unveiled five-year strategy for the 2024-2028 period. This strategic roadmap outlines the company's commitment to continued growth and value creation for its shareholders. The robust Q1 performance serves as a promising indicator of ADNOC Distribution's ability to execute its strategic vision and maintain its position as a dominant player within the region's fuel and convenience retail landscape.

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