The Abu Dhabi National Oil Company for Distribution (ADNOC Distribution) announced it would expand its facilities and services across the UAE, mainly in Dubai where it operates four stations.
The leading fuel distributor aims to boost the number of its stations in Dubai by building 75 new stations over the coming five years, acting CEO of the company said in a statement on the sidelines of the First Capital Markets Days in London and New York.
The company’s board of directors has agreed on the construction of three more stations in Saudi Arabia, following the success of two stations launched in the kingdom earlier in 2018, from which it gained profits of over 30%, Saeed Mubarak Al Rashdi added.
ADNOC Distribution’s expansion plan in Saudi Arabia will include fuel services, cars washes, and restaurants, he revealed.
The company has generated a profit margin of 10% per litre of fuel since August 2015, backed by its position as the UAE’s leading fuel supplier as well as the country’s top retail and business services provider, he highlighted.
Al Rashdi projected the company to maintain growth in its local and international fuel operations, adding that it plans to expand its retail operations, including fuel and non-fuel products, to new countries, along with Saudi Arabia.
“We want to explore investment opportunities in new markets outside the UAE, to meet our minimum target of achieving a 15% profit margin from our investments,” he said.
Al Rashdi further noted that the UAE and the GCC region will benefit from ADNOC Distribution’s expansion in the fuel and the business services sectors, upon which the company will consequently expand its activities to neighbouring countries.