Adnoc Distribution to double EV charging points this year

UAE's largest fuel retailer expects to have 150 to 200 stations by end of 2024

An Adnoc Distribution fuel station. The company said its first-quarter profit increased by 2.3 per cent on an annual basis. Photo: Adnoc Distribution
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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.

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.

Updated: May 09, 2024, 12:21 PM