ADNOC Distribution’s first quarter results demonstrate a company that is financially strong and has laid a solid foundation for further positive progress, driven by our growth strategy covering fuel, non-fuel and cost efficiency initiatives.
Gross profit for the first quarter increased by 14.3% to AED 1,185 million compared to the same period last year, EBITDA grew by 24.9% to AED 702.8 million, and profit for the period was AED 542 million, up 12.1% compared to the first quarter of 2017.
Our operational performance in Q1 remained solid, with total fuel volumes sold reaching 2.3 billion liters, up 0.9% from the same period last year. Gross profit in retail fuel grew by 14.1% year-on-year, reaching AED 724.5 million for the quarter. In our non-fuel retail business, gross profit increased by 37.1%, while average basket size in our 238 convenience stores rose by 12.5%.
The results show that ADNOC Distribution’s growth strategy is on track, with promising progress on initiatives covering fuel, non-fuel and cost efficiency. We successfully launched ADNOC Flex, which introduces a greater choice of fueling services, and will be rolling out throughout the UAE in Q2. Our convenience store revitalization plans are bearing fruit and our first Géant Express branded store has opened in Abu Dhabi. In addition, a strong discipline of cost efficiency has been embedded across the business in the first quarter.
Plans to expand our network into Dubai are ahead of schedule, with construction underway on three service stations in prime, high traffic locations and opening scheduled for late 2018.
A strong and profitable ADNOC Distribution is good for shareholders, but it’s also good for customers and the UAE as it allows us to continue investing in critical infrastructure, technology and human capital that supports the country’s development.
Looking back on the first months as a listed company, I am proud of our how we are transforming ADNOC Distribution into a more performance driven, commercially minded and customer centric company. We are well on our way to further strengthening our investment proposition by delivering on our commitments across a number of key areas.
As we progress through 2018 I am confident that, as our growth strategy advances further and market headwinds ease, shareholders will see continued positive results.
Saeed Mubarak Al Rashdi
Chief Executive Officer