Adnoc Distribution, the UAE's largest fuel retailer, reported a 2.1 per cent increase in second-quarter net income as revenue climbed, supported by higher fuel volumes and cost efficiencies.
Net profit for the three months to the end of June rose to Dh521 million ($141.96m), the company said in a statement to Abu Dhabi Securities Exchange, where its shares are traded.
Second-quarter revenue rose by 66.4 per cent annually to Dh5 billion ($1.36bn), compared with Dh3bn last year.
"These results reflect our focused drive towards delivering on our strategy and sustained progress in all of our strategic pillars: fuel, non-fuel and cost efficiency," said Bader Al Lamki, chief executive of Adnoc Distribution.
"We continue to make disciplined capital investments, achieving cost savings while growing our service station network and maintaining high levels of safety, quality and customer experience."
Fuel volumes made a "progressive recovery" towards their pre-Covid levels as consumer sentiment improved after a successful vaccination drive in the UAE.
The company also managed to lower its operating costs, which fell by 10 per cent in the first half of the year, compared with the same period last year.
The company will pay a dividend of Dh2.57bn in 2021, with the payment for the first half – of 10.285 fils per share – set for distribution in October, pending board approval.
In March, Adnoc Distribution's shareholders approved a proposal to raise the dividend for 2020 by 7.5 per cent and maintain a similar payout for the next two years.
The company set a minimum dividend payout of Dh2.57bn for 2022, compared with 75 per cent of distributable profit as per the previous policy.
In May, Adnoc said it had successfully raised $1.64bn through the sale of new shares and issuance of exchangeable bonds in Adnoc Distribution.
The company offered 375 million shares, equal to 3 per cent of its share capital and a three-year unsecured bond that could be exchanged for a further 7 per cent of shares, subject to certain conditions.
The placement of additional shares will leave the Adnoc Group with a 70 per cent interest in its fuel distribution arm.
Adnoc Distribution opened 12 new fuel retail stations in the UAE in the first half of the year. The company also obtained no-objection certificates from the Saudi General Authority for Competition to acquire 35 new stations in the kingdom.
The acquisition of the stations in Saudi Arabia was announced in December and in February.
In the UAE, the company also refurbished 24 of its Adnoc Oasis convenience stores in the first half of the year.
The fuel retailer also joined the MSCI Emerging Markets index on May 27. Adnoc Distribution joins nine other UAE-listed companies that are part of the index, which is tracked by funds with assets worth billions of dollars.
Virtual banks explained
What is a virtual bank?
The Hong Kong Monetary Authority defines it as a bank that delivers services through the internet or other electronic channels instead of physical branches. That means not only facilitating payments but accepting deposits and making loans, just like traditional ones. Other terms used interchangeably include digital or digital-only banks or neobanks. By contrast, so-called digital wallets or e-wallets such as Apple Pay, PayPal or Google Pay usually serve as intermediaries between a consumer’s traditional account or credit card and a merchant, usually via a smartphone or computer.
What’s the draw in Asia?
Hundreds of millions of people under-served by traditional institutions, for one thing. In China, India and elsewhere, digital wallets such as Alipay, WeChat Pay and Paytm have already become ubiquitous, offering millions of people an easy way to store and spend their money via mobile phone. Indonesia, Vietnam and the Philippines are also among the world’s biggest under-banked countries; together they have almost half a billion people.
Is Hong Kong short of banks?
No, but the city is among the most cash-reliant major economies, leaving room for newcomers to disrupt the entrenched industry. Ant Financial, an Alibaba Group Holding affiliate that runs Alipay and MYBank, and Tencent Holdings, the company behind WeBank and WeChat Pay, are among the owners of the eight ventures licensed to create virtual banks in Hong Kong, with operations expected to start as early as the end of the year.
The specs
Engine: 3.9-litre twin-turbo V8
Power: 640hp
Torque: 760nm
On sale: 2026
Price: Not announced yet
CRICKET%20WORLD%20CUP%20QUALIFIER%2C%20ZIMBABWE%20
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England v South Africa Test series:
First Test: at Lord's, England won by 211 runs
Second Test: at Trent Bridge, South Africa won by 340 runs
Third Test: at The Oval, July 27-31
Fourth Test: at Old Trafford, August 4-8
The specs
Engine: 5.0-litre supercharged V8
Transmission: Eight-speed auto
Power: 575bhp
Torque: 700Nm
Price: Dh554,000
On sale: now
Film: Raid
Dir: Rajkumar Gupta
Starring: Ajay Devgn, Ileana D'cruz and Saurabh Shukla
Verdict: Three stars
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
MATCH INFO
FA Cup final
Chelsea 1
Hazard (22' pen)
Manchester United 0
Man of the match: Eden Hazard (Chelsea)
SPECS
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The%20US%20Congress%20explained
%3Cp%3E-%20Congress%20is%20one%20of%20three%20branches%20of%20the%20US%20government%2C%20and%20the%20one%20that%20creates%20the%20nation's%20federal%20laws%3C%2Fp%3E%0A%3Cp%3E-%20Congress%20is%20divided%20into%20two%20chambers%3A%20The%20House%20of%20Representatives%20and%20the%20Senate%3C%2Fp%3E%0A%3Cp%3E-%C2%A0The%20House%20is%20made%20up%20of%20435%20members%20based%20on%20a%20state's%20population.%20House%20members%20are%20up%20for%20election%20every%20two%20years%3C%2Fp%3E%0A%3Cp%3E-%20A%20bill%20must%20be%20approved%20by%20both%20the%20House%20and%20Senate%20before%20it%20goes%20to%20the%20president's%20desk%20for%20signature%3C%2Fp%3E%0A%3Cp%3E-%20A%20political%20party%20needs%20218%20seats%20to%20be%20in%20control%20of%20the%20House%20of%20Representatives%3C%2Fp%3E%0A%3Cp%3E-%20The%20Senate%20is%20comprised%20of%20100%20members%2C%20with%20each%20state%20receiving%20two%20senators.%20Senate%20members%20serve%20six-year%20terms%3C%2Fp%3E%0A%3Cp%3E-%20A%20political%20party%20needs%2051%20seats%20to%20control%20the%20Senate.%20In%20the%20case%20of%20a%2050-50%20tie%2C%20the%20party%20of%20the%20president%20controls%20the%20Senate%3C%2Fp%3E%0A
MATCH INFO
Manchester City 2 (Mahrez 04', Ake 84')
Leicester City 5 (Vardy 37' pen, 54', 58' pen, Maddison 77', Tielemans 88' pen)
Man of the match: Jamie Vardy (Leicester City)
The specs
Price: From Dh180,000 (estimate)
Engine: 2.0-litre turbocharged and supercharged in-line four-cylinder
Transmission: Eight-speed automatic
Power: 320hp @ 5,700rpm
Torque: 400Nm @ 2,200rpm
Fuel economy, combined: 9.7L / 100km
FIGHT%20CARD
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The specs: 2017 Lotus Evora Sport 410
Price, base / as tested Dh395,000 / Dh420,000
Engine 3.5L V6
Transmission Six-speed manual
Power 410hp @ 7,000rpm
Torque 420Nm @ 3,500rpm
Fuel economy, combined 9.7L / 100km
Kill%20Bill%20Volume%201
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GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
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Shipping%20and%20banking%20
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India squad for fourth and fifth Tests
Kohli (c), Dhawan, Rahul, Shaw, Pujara, Rahane (vc), Karun, Karthik (wk), Pant (wk), Ashwin, Jadeja, Pandya, Ishant, Shami, Umesh, Bumrah, Thakur, Vihari
UAE currency: the story behind the money in your pockets
ELECTION%20RESULTS
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UAE currency: the story behind the money in your pockets
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BIRD%20BOX%20BARCELONA
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Command%20Z
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