2023-05-13 13:56:16
With the pressure of reducing the profit margin to 15.8%
The financial statements of ADNOC Distribution showed a decrease in net profits attributable to shareholders in the first quarter of this year by 20% to 537.3 million dirhams, compared to 670.7 million dirhams in the same quarter of the previous year.
The company said in a statement on the Abu Dhabi Stock Exchange, that the reason for the decline in profits in the first quarter is due to the decrease in the profit margin to 15.8%, compared to 21.5%, due to the increase in the cost of revenues by 27%.
The company indicated an increase in impairment losses and other operating expenses to reach 17.9 million dirhams, compared to 6.8 million dirhams in the first quarter of 2022.
Revenues increased by 19% to 7.99 billion dirhams in the first quarter, compared to 6.73 billion dirhams in the comparative period of 2022.
According to the statement, ADNOC Distribution witnessed an 8% increase year on year in the total quantities of fuel sold in both the UAE and Saudi Arabia during the first quarter of 2023, driven by the continued economic recovery and the expansion of the company’s network of stations across the country.
Total volumes of retail fuel sales – which represent regarding 65% of the total volumes of fuel sold – increased by 5.5% year-on-year. In addition, corporate fuel sales volumes witnessed a strong growth of 21% year-on-year compared to the same period in 2022, mainly driven by the company’s efforts to enhance its commercial business portfolio through business development programs and customer relationship management.
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