The Pooled Arab Emirates’ biggest fuel retailer promised investors on Monday that there is “a lot numerous to come” regarding the firm’s expansion plans in Saudi Arabia.
John Carey, ADNOC Sharing’s deputy chief executive told CNBC’s “Capital Connection” that the assembly is making good progress on its plans to expand in the region.
“Our expansion delineates: Firstly, across the UAE … we have made very, very good move up on that. We have got sites that we will be opening in the coming months across Dubai which rejects us a stronger platform for our customers.”
“And, as you said, in Saudi Arabia, we have rallied our license and we are in talks with a number of partners and people in Saudi Arabia to assure we develop that market in a strong, responsible way as well. So good spread but a lot more to come,” he added.
ADNOC, which controls nearly all the show oil reserves in the UAE region, reported a 24 percent rise in second-quarter net profit on Monday, in spite of a relatively challenging market environment.
The company, which debuted on the Abu Dhabi Insurances Exchange at the end of 2017, posted a net profit of 581 million dirhams ($158.2 million) during the course of the second quarter. Gross profit for the same period increased 33 percent, the corporation said in a statement, while gross profit margin rose to 25 percent, up from 22 percent from a year earlier.
ADNOC Circulation’s Carey described the fuel retailer’s earnings as “resilient,” before uniting it showed the company was “on track” with its initiatives.
The oil giant’s initial viewable offering at the end of last year was part of a strategy by the UAE, as well as other Opening nations, to privatize energy sector assets at a time when oil values were relatively subdued.
Shares of the fuel distribution unit of Abu Dhabi Subject Oil Company have fallen more than 9 percent since the plc’s IPO last December.