Adnoc Distribution announces expansion plans in UAE and Saudi Arabia
Adnoc Distribution announced plans to open fuel retail outlets in the UAE and Saudi Arabia this year, as part of the company’s expansion plans in the region.
As of the end of 2017, Adnoc Distribution operated 360 service stations in the UAE, along with a number of convenience stores.
Adnoc Distribution, the fuel and retail arm of Abu Dhabi National Oil Company (Adnoc), was listed in the Abu Dhabi Securities Exchange on December 13, 2017, raising AED 3.1 billion (USD 843.8 million) for 10% of its shares through an initial public offering (IPO).
Three new service stations are planned to be built in Dubai, nine in Abu Dhabi, Ajman and Fujairah and at least one site in Saudi Arabia under a franchise agreement, the company said in a statement filed with the Abu Dhabi Securities Exchange.
In addition, the company also will complete major extensions at three existing stations in Abu Dhabi this year.
“Improving service, choice and convenience for our customers is our top priority for 2018, as we transform Adnoc Distribution into a more commercially minded and performance-driven company,” said Saeed Mubarak Al Rashdi, acting CEO.
“This year we will deliver new stations quicker and at a lower cost while enhancing our customers’ experience and maintaining our 100% focus on health and safety.”
According to the company, capital expenditure on a per-site basis has been reduced in 2018 and capital expenditures on some future stations have been reduced by as much as 40%, through a rigorous approach to value engineering.
In the first quarter alone, four new stations and three major extensions will open in Abu Dhabi and Ajman including along highways like the Shaikh Mohammad Bin Rashid Al Maktoum Road, which links Dubai with Abu Dhabi city.