ADNOC Distribution in Abu Dhabi reported a 27% decline in Q4 2022 net profit to $114M, mostly due to higher operational expenses and a lack of inventory growth from the prior quarter. The largest fuel retailer in the UAE reported an annual net profit of AED 2.75B, a 22% increase over the previous year.
According to data provider Refinitiv’s analysis, the results fell short of the analysts’ mean profit projections of AED 2.87B for the fiscal year and AED 618M for the fourth quarter. In a statement to the Abu Dhabi Securities Exchange (ADX) on Thursday, the UAE’s largest fuel retailer said Q4 revenue increased 32% year-on-year to AED 8.19B driven by growth in fuel volumes, higher selling prices on the back of higher crude oil prices as well as higher contribution of nonfuel business.
In line with its plans to expand, ADNOC Distribution invested AED 1.25B in 2022, of which nearly 65% was spent on growth. According to the corporation, it will investigate potential business expansion prospects and new revenue sources brought about by the energy revolution, including new mobility solutions like electric vehicle charging. The company’s board of directors has recommended paying a cash dividend of AED 1.3B at a share price of 10.285 fils for the second quarter of 2022. AED 2.57B is projected to be the total dividend for FY2022 (20.57 fils per share).
