UAE oil giant making ‘good progress’ with expansion plans in Saudi Arabia, executive says
- August 14, 2018
- Posted by: consortiumconsultancy
- Category: Uncategorized
- ADNOC Distributions, UAE’s biggest fuel retailer, told CNBC there is good progress on expansion in the region.
- The company, which debuted on the Abu Dhabi Securities Exchange at the end of 2017, posted a net profit of 581 million dirhams ($158.2 million) over the second quarte
The United Arab Emirates’ biggest fuel retailer promised investors on Monday that there is “a lot more to come” regarding the firm’s expansion plans in Saudi Arabia.
John Carey, ADNOC Distribution’s deputy chief executive told CNBC’s “Capital Connection” that the company is making good progress on its plans to expand in the region.
“Our expansion plans: Firstly, across the UAE … we have made very, very good progress on that. We have got sites that we will be opening in the coming months across Dubai which gives us a stronger platform for our customers.”
“And, as you said, in Saudi Arabia, we have gained our license and we are in talks with a number of partners and people in Saudi Arabia to ensure we develop that market in a strong, responsible way as well. So good progress but a lot more to come,” he added.
ADNOC, which controls nearly all the proven oil reserves in the UAE region, reported a 24 percent rise in second-quarter net profit on Monday, despite a relatively challenging market environment.
The company, which debuted on the Abu Dhabi Securities Exchange at the end of 2017, posted a net profit of 581 million dirhams ($158.2 million) over the second quarter. Gross profit for the same period increased 33 percent, the company said in a statement, while gross profit margin rose to 25 percent, up from 22 percent from a year earlier.
ADNOC Distribution’s Carey described the fuel retailer’s earnings as “resilient,” before adding it showed the company was “on track” with its initiatives.
The oil giant’s initial public offering at the end of last year was part of a strategy by the UAE, as well as other Gulf nations, to privatize energy sector assets at a time when oil prices were relatively subdued.
Shares of the fuel distribution unit of Abu Dhabi National Oil Company have fallen more than 9 percent since the company’s IPO last December.