RIYADH: Abu Dhabi-based oil firm ADNOC Distribution posted net profit growth of 6.3 percent to 671 million dirhams ($183 million) in the first quarter.
The performance was boosted by higher fuel volume which climbed 11 percent in the first quarter over the same period last year, the company revealed in a press release.
The firm's corporate fuel volume also increased 19 percent year-on-year, helped by new sales agreements signed in the fourth quarter of 2021.
ADNOC also announced expanding its network in the first quarter with the addition of 15 new stations in Saudi Arabia, increasing its network in the Kingdom to 55. In the UAE, it opened three new stations, bringing the total domestic network to 464 in total. The company said it is on track to deliver 20-30 new sites in the UAE before the end of 2022.
“Our network expansion has maintained strong momentum throughout the first quarter of the year. This can be seen particularly in Saudi Arabia where we have grown our service station network by 40 percent,” Bader Saeed Al-Lamki, CEO of the company, said.
In addition, four new ADNOC Oasis convenience stores have opened in the UAE, while three other ADNOC Oasis stores were refurbished to improve the customer experience.
Earlier, ADNOC Distribution shareholders had approved a dividend of $350 million for the second half of 2021, bringing the total dividend to $700 million in 2021.
The CEO said they will continue to pursue growth opportunities and sustain attractive shareholder payback.
Its dividend policy has set a dividend of minimum 2.57 billion dirhams for 2022, providing visible payback to shareholders until April 2023.
“We have committed to ambitious national and international growth, which we remain on track to deliver in 2022,” he added.
The firm also focused on marketing programs and loyalty programs, with strong promotions during the first quarter of 2022.
With a total of 83 ADNOC reward program partners, the firm has over 1.3 million ADNOC reward program members.
