ABU DHABI / WAM
Adnoc Distribution released its financial results for the first quarter of 2018, with strong double-digit growth in net profit and EBITDA as well as impressive growth in gross profit in its convenience store business.
Gross profit for the period increased 14.3% compared to the same period last year to AED1.185 billion, EBITDA has grown 24.9% to AED702.8 million, and net profit was AED542.2 million, up by 12.1% compared to the first quarter of 2017.
In addition, a strong discipline of cost efficiency has been further embedded across the business in the first quarter, which puts the company on track to hit its cost reduction target for 2018.
Adnoc Distribution’s Acting CEO, Saeed Mubarak Al Rashdi, said: “Adnoc Distribution’s first quarter results illustrate a company that is financially strong and has laid a solid foundation for further growth, with its fuel, non-fuel and cost efficiency initiatives.”
Adnoc Flex, which introduces a greater choice of fuelling services, has launched successfully and will be rolled out throughout the UAE in Q2 and Q3. Adnoc Distribution’s convenience store revitalisation plans are bearing fruit and the company’s first of ten Geant Express stores, providing an improved experience, an entirely new design and product mix, has opened in Abu Dhabi earlier this month. The other nine stores will open at existing Adnoc Distribution sites during the second and third quarters of this year.
Adnoc, Ravago explore collaboration prospects at Ruwais complex
Dubai / WAM
Adnoc announced it has signed an MoU with Ravago Group (Ravago), a leading service solutions provider in global polymers and chemicals market, to explore opportunities for cooperation at Ruwais Industrial Complex.
As part of Adnoc’s efforts to maximise value across its value chain, Ravago and Adnoc will explore ways to upgrade and commercialise the non-prime product generated at Borouge, the joint venture between Adnoc and Austria-based Borealis. This process, known as compounding, would take place at the proposed facility, situated in the Ruwais Industrial Complex.
Ravago’s manufacturing segment, operates 24 plants across 4 continents, producing plastics, rubbers and chemicals, serving the automotive, electronics, and building and construction industries through the company’s global distribution network.