UAE ADNOC Distribution is on track to achieve more expansion in Saudi Arabia as it is making good progress on its plans, according to the firm. Deputy chief executive of ADNOC Distribution, the United Arab Emirates’ oil giant, said on Monday that a lot of things regarding its expansion plans are ready to appear.
CEO Saeed Mubarak Al Rashdi said that ADNOC Distribution plans to achieve cost savings of approximately AED 190 million in ($51.73 million) in 2018.
Al Rashdi made an announcement as on Monday, the company reported a 24 percent increase in second-quarter net profit and 18 percent rise from the 2017’s same time period.
“Our expansion plans: Firstly, across the UAE … we have made very, very good progress on that. We have got sites that we will be opening in the coming months across Dubai which gives us a stronger platform for our customers,” said John Carey, ADNOC Distribution’s deputy chief executive.
“And, as you said, in Saudi Arabia, we have gained our license and we are in talks with a number of partners and people in Saudi Arabia to ensure we develop that market in a strong, responsible way as well. So good progress but a lot more to come,” he added.
The company, which controls nearly all the proven oil reserves in the UAE regions, revealed a net profit of 581 million dirhams ($158.2 million) over the second quarter. Gross profit increased by 33 percent, while the gross profit margin grew to 25 percent, 22 percent up from last year’s figures, the company said in a statement.
The results show that UAE ADNOC Distribution is on track and has made progress in its fuel, non-fuel, and cost-efficiency pillars, Al Rashdi said.