Emirates National Oil Company (Enoc) is eyeing foreign acquisitions and expansion because volatile oil prices are conducive to asset sales, the Dubai-based fuel retailer and energy company said yesterday.
“While the ongoing oil price instability is undoubtedly challenging, the flip side is that this environment is particularly fertile for acquisitions, as certain companies look to exit certain industry sectors and markets,” said Saif Al Falasi, Enoc’s chief executive.
Last year, Enoc acquired Dragon Oil for £1.7 billion (Dh8.84bn), ending a six-year battle to purchase the remaining 46 per cent it did not already own in the energy company. The acquisition means Enoc has assets capable of producing 100,000 barrels of oil per day, the Dubai-based company said.
Enoc is also planning to expand in the UAE by increasing the capacity of its condensate refinery in Jebel Ali in Dubai and adding more petrol stations to meet demand for fuels in the emirate. The firm did not say how big the increase in refining capacity would be.
Enoc Retail will raise its capacity by 40 per cent between this year and 2020 in Dubai and the Northern Emirates by adding more stations.
With 112 stations in the UAE, Enoc will renovate two stations and build 54 more in Dubai as part of the expansion plan. The company did not say how much the new stations would cost. In Saudi Arabia, the company plans to add 11 stations this year to the current three.
Enoc said the liberalisation of fuel prices last year has helped it to implement expansion plans.
“The Ministry of Energy’s decision to align gasoline and diesel prices with market prices enabled us to move forward with our expansion plans, and continue investing in technologies that enhance customer service and experience,” said Mr Al Falasi. “We will also meet the growing public demand for more service stations in line with the expected population growth in the UAE over the next five years.”
Enoc boosted its revenue by 45 per cent over the past five years due to higher fuel sales.
Sales of crude and petroleum products rose 16 per cent last year to a record high of 220 million barrels.
Enoc did not disclose revenues last year or the past five years.
“Our strategy is focused on diversifying our revenue streams by investing in operations that are well positioned to generate sustainable growth,” said Mr Al Falasi.
The Abu Dhabi-based fuel retailer Adnoc Distribution expects to post a profit this year for the first time since 2005 thanks to the new system of pricing petrol on a formula linked to the international oil price.
dalsaadi@thenational.ae
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