Adnoc Distributions acting CEO Saeed Mubarak Al Rashdi announced that the company is planning to expand its facilities and investment services around the UAE, particularly in Dubai which currently serves four stations.
Al Rashdi said that the firm plans to increase the number of stations in Dubai over the next five years by constructing a total of 75 new stations at an average of 15 stations every year. Meanwhile, Adnoc Distributions board of directors have decided to set up three new station in Saudi Arabia. This is due to the success of two stations which were set up in the Kingdom in 2018, which has had profits over 30 per cent.
In Saudi Arabia, the company also plans to expand its activities and add fuel services, car washes, and restaurants, he said. Speaking on the sidelines of the first Capital Markets Day held in London and New York, Al Rashdi said that he expects Adnoc Distribution to achieve ongoing growth in its local and international fuel operations. He also noted the firms plans to expand its retail operations related to fuel and non-fuel products to new countries, along with Saudi.
“We want to explore investment opportunities in new markets outside the UAE, to meet our minimum target of achieving a 15 per cent profit margin from our investments.
Al Rashdi added that Adnoc Distribution obtained a profit margin of 10 cents per litre of fuel since August 2015 and that the expansion of the companys fuel sector and business services sector will benefit the UAE and the Gulf region.
