Dubai: Higher fuel demand and consumers buying more at its convenience stores was the ballast for ADNOC Distribution’s 4.8 per cent jump in 9-month 2023 revenue to Dh25 billion. The only factor that did slow growth was lower fuel prices on average compared to last year.

It did pull net profit to Dh.92 billion, down 17.4 per cent. The ADNOC entity cites lower inventory gains as the prime reason. (If one excludes the inventory side of things, then net profit would be 1.7 per cent lower year-on-year, helped by the greater returns coming from the Saudi and Egypt operations.)

The numbers during the third quarter alone are on the robust side – a 9 per cent increase in net profit to Dh835 million derived from an EBITDA of Dh1.1 billion. “These results are among the strongest since the company’s IPO in 2017, supported by a double-digit growth in fuel volumes and non-fuel business, efficiency improvement initiatives, and a growing contribution from international operations,” ADNOC Distribution said in a statement.

It was last month that the company issued dividends of Dh1.28 billion (or 10.285 fils per share) for H1-23. It anticipates a ‘minimum’ Dh1.28 billion payout for the second-half, payable in April 2024.

“Our impressive third-quarter results are a testament to the continuous growth of our business as we witness strong momentum across both our fuel and non-fuel retail segments,” said Bader Saeed Al Lamki, CEO, in a statement.

By end September, the company’s fuel station network had risen to 828 locations, including 518 in the UAE and 67 in Saudi Arabia.

On an annualized basis, shareholders are up for a dividend yield of 5.9 per cent. The company will have received the boost it was looking out for from the third quarter numbers. The CEO makes that point: “These results mark one of the strongest quarterly performances since our IPO…”