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Abu Dhabi-based ADNOC Distribution reported a 45% rise in net profit to AED767 million ($209 million) in the third quarter of 2022, and said it expected the growth to continue into 2023.
In a statement to the Abu Dhabi Stock Exchange (ADX), the UAE’s largest fuel retailer said the higher net profit was driven by higher EBITDA and lower depreciation charges, as a result of the asset’s useful life. The related accounting estimates have changed. implemented this quarter. “This change resulted in a reduction of AED 125 million in depreciation of USD 9 million in 2022, with the full impact reflected in the third quarter of 2022.”
However, on a quarterly basis, net profit fell 14%.
Revenue for the period was AED8.55 billion, up 58% year-on-year, mainly due to higher fuel prices and volumes, as well as growth in non-fuel retailing, the company said. However, compared to the previous quarter, revenue slipped 1% as the company sold fewer fuels.
EBITDA rose 18 percent to AED868 million, and the company reiterated its target to reach EBITDA of at least AED3.67 billion by next year.
Total fuel sales reached 2.322 billion litres in the quarter, up 1.9% compared to the third quarter of 2021, the company said.
It plans to invest around AED918 million in capital expenditure in 2022 for new petrol stations and equipment.
The company expects to pay at least AED 1.285 billion (Phil 10.285 per share) in April next year as a dividend for the second half of 2022.
(Reporting by Brinda Darasha; Editing by Daniel Luiz)
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