Adnoc Distribution to double EV charging points this year

Adnoc Distribution, the UAE’s largest fuel and convenience retailer, plans to more than double its network of electric vehicle charging points by the end of this year as the company responds to growing sales.

The Adnoc subsidiary expects to have 150 to 200 charging stations by the end of 2024, compared with 89 in the first quarter, the company said in a filing on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.

“Adnoc Distribution is committed to future-proofing its business through a disciplined roll out of profitable fast and super-fast EV charging points,” the company said.

The UAE plans to increase the share of electric and hybrid vehicles on the roads to 50 per cent by 2050.

Currently, the country's share of electric and hybrid vehicles is about 1 per cent.

"We are definitely working on enabling the uptake of EVs as one of the sustainable mobility solutions. We have the expertise and we have the the network [as well as the] infrastructure," Bader Al Lamki, chief executive of Adnoc Distribution, told The National in an interview.

"We have our stations [on] key highways of the country [and] in residential areas, so having ... super fast chargers will also allow car owners to be comfortable to travel [and] be assured that the charging point ... is within reach."

Globally, EV sales are projected to slow this year as car manufacturers and suppliers grapple with a global downturn that has resulted in bankruptcies, cancelled initial public offerings and reduced production.

Electric car sales are projected to increase by about 21 per cent to 17 million this year, down from the 35 per cent expansion recorded last year, the International Energy Agency said in its Global EV Outlook last month.

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Tax impact

Adnoc Distribution said its first-quarter profit increased by 2.3 per cent on an annual basis, despite a Dh58 million ($15.79 million) UAE corporate income tax bill.

Last year, the Emirates introduced a 9 per cent corporate tax, marking a significant policy change and a step towards complying with international standards.

Net income attributable to equity holders of Adnoc Distribution for the three months to the end of March rose to about Dh550 million.

Meanwhile, revenue for the reporting period climbed by more than 9 per cent annually to Dh8.75 billion.

Fuel volumes sold in the UAE and Saudi Arabia rose 9.3 per cent annually in the first three months of 2024, supported by the region’s continued economic growth and higher mobility.

Adnoc Distribution recorded a 17.3 per cent year-on-year increase in total fuel volumes sold, with retail volumes up by nearly 18 per cent and commercial volumes up by 16.3 per cent, the company said.

The company added eight new stations in the UAE, Saudi Arabia and Egypt in the first quarter and is “on track” to open 15-20 new stations this year, it said.

It opened four new stations in the UAE, bringing its total network to 532, a 5 per cent increase from the same period a year earlier.

Adnoc Distribution will continue to expand, supported by continued growth in the UAE's economy, Mr Al Lamki said on Thursday.

A growing economy typically leads to increased demand for transportation services, resulting in the establishment of more fuel stations to meet growing consumption. The Emirates' economy is expected to grow by 4.2 per cent this year, according to the UAE Central Bank.

"We've also been [on a] good trajectory coming out of the Covid era ... the UAE economy is growing [and] the fundamentals are there. We expect that the same momentum [will] continue over the coming horizon," Mr Al Lamki said.

Fight card

1. Bantamweight: Victor Nunes (BRA) v Siyovush Gulmamadov (TJK)

2. Featherweight: Hussein Salim (IRQ) v Shakhriyor Juraev (UZB)

3. Catchweight 80kg: Rashed Dawood (UAE) v Khamza Yamadaev (RUS)

4. Lightweight: Ho Taek-oh (KOR) v Ronald Girones (CUB)

5. Lightweight: Arthur Zaynukov (RUS) v Damien Lapilus (FRA)

6. Bantamweight: Vinicius de Oliveira (BRA) v Furkatbek Yokubov (RUS)

7. Featherweight: Movlid Khaybulaev (RUS) v Zaka Fatullazade (AZE)

8. Flyweight: Shannon Ross (TUR) v Donovon Freelow (USA)

9. Lightweight: Mohammad Yahya (UAE) v Dan Collins (GBR)

10. Catchweight 73kg: Islam Mamedov (RUS) v Martun Mezhulmyan (ARM)

11. Bantamweight World title: Jaures Dea (CAM) v Xavier Alaoui (MAR)

12. Flyweight World title: Manon Fiorot (FRA) v Gabriela Campo (ARG)

How to invest in gold

Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.

A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).

Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.

Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”

Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”

Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”

By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.

You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.

You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.

War 2

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