Abu Dhabi's ADNOC Distribution said on Monday it has executed two agreements to acquire 20 service stations in Saudi Arabia for 56.9 million dirhams ($15.5 million), increasing its total network in the Kingdom to 37. The acquisition is, however, subject to certain conditions (including obtaining regulatory approvals). The two transactions consist of 20 service stations in the Eastern, Central, and Riyadh regions of the Kingdom, with a total purchase consideration of up to 56.9 million dirhams ($15.5 million). The company signed an agreement on Dec. 30, 2020 to acquire 15 service stations in Saudi Arabia following the success of two stations launched in 2018. Commenting on the development, Ahmed Al Shamsi, acting chief executive officer of ADNOC Distribution, said, "We set ambitious growth targets for 2020 and it is testament to our resilient business model that we not only met but exceeded guidance in terms of both new station openings and convenience store refurbishments. "ADNOC Distribution is well placed to continue building on recent success, in the UAE and beyond, in the year ahead and remains on track to reach EBITDA target of at least $1.0 billion by 2023. We will continue to seek further international expansion opportunities and unlock incremental value for shareholders." The company on Monday reported that its net profit for the fourth quarter of 2020 grew to 851 million dirhams, with underlying EBITDA (EBITDA excluding one-offs and inventory gains/losses) of 1.1 billion dirhams. For the year 2020, net profit was 2.4 billion dirhams, while underlying EBITDA stood at 3.6 billion dirhams. ADNOC Distribution has maintained a strong balance sheet as of Dec. 31, 2020, and remained well-positioned to expand both its domestic and international portfolio in-line with its smart growth strategy, as well as meet its dividend commitments. As of Dec. 31, 2020, the company's liquidity was at 5.6 billion dirhams in the form of 2.8 billion dirhams in cash and cash equivalents and AED2.8 billion in unutilized credit facilities. Following a 24 percent quarter-on-quarter increase in total fuel volumes in Q3 2020, volumes for the fourth quarter of 2020 increased 2 percent compared to the third quarter of 2020. During the year, ADNOC Distribution opened 64 new stations, ahead of its guidance to the market of 50-60 new stations; a rate of delivery ten times that of 2019. There was a significant increase in ADNOC Distribution's network in Dubai in 2020, with 20 new service stations opened in the emirate. The company also added a sizeable number of new ‘ADNOC On the Go' stations. A total of 38 were opened in 2020 across the country. Also, a total of 100 ADNOC Oasis convenience stores were refurbished throughout the year, above the market guidance of 80-90. — SG
