Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai
CAIRO - 8 August 2022: ADNOC Distribution’s entry into the Egyptian market will help create new revenue sources by diversifying the company’s business portfolio, and significantly enhance financial performance, CEO of the company, Bader Saeed Al-Lamki stated.
ADNOC Distribution has strengthened its global expansion by entering into a partnership with Total Energies.
Two weeks ago, it announced the largest investment deal in its history to acquire a 50% stake in the portfolio of "Total Energies", one of the four largest fuel distribution companies in Egypt.
The value of the deal was estimated at 683 million dirhams, with an additional profit of 63.5 million dirhams if certain conditions are met. This acquisition came within the framework of the company's vision to make ADNOC Distribution a regional leader in the fuel distribution sector.
Established in 1998, Total Energy Egypt has a diversified business portfolio that includes 240 retail fuel stations, over 100 retail stores, more than 250 oil change stations, car wash centers, wholesale fuel, jet fuel and lubricant operations.
Through the deal, ADNOC Distribution and Total Energies will develop the future growth opportunities for Total Energies Egypt by taking advantage of the available capabilities and exploring aspects of fruitful cooperation in the field of fuel and lubricant distribution and aviation business, enhanced by economic growth in the wake of the recovery from the repercussions of the COVID-19 pandemic..
The acquisition also includes the renovation of a number of service stations to comply with ADNOC's brand standards, as well as the establishment of selected new sites in the future bearing its brand, strengthening ADNOC's presence in the fast-growing Egyptian retail fuel distribution market.
The acquisition is expected to be completed during the first quarter of 2023, as the agreement is subject to the fulfillment of certain conditions, including approvals from the relevant regulatory authorities.
Earlier today, August 8, ADNOC Distribution announced that its profits increased by more than 70% in the second quarter of 2022, on an annual basis; driven by significant growth in total fuel sales.
The company attributed the rise in fuel sales to the country's continued economic growth and the easing of travel restrictions worldwide, noting that it continued to expand in Saudi Arabia by adding new stations; Which led to an increase in fuel volumes in the first half of this year, according to a statement by "ADNOC Distribution" issued, Monday.
ADNOC opened 26 new service stations in Saudi Arabia during the first half of 2022. The total number of its stations in the Kingdom reached 66 service stations, and 12 new ADNOC stations entered service in the UAE, bringing the number of its stations within the country to 472 service stations. The company aims to open 60-80 new sites in 2022.