ADNOC Distribution looks to expand retail arm in Saudi Arabia
ADNOC Distribution’s board of directors will hold a meeting to discuss the acquisition of fuel distribution assets in Saudi Arabia valued at $10 million.
ADNOC Distribution is planning to expand its fuel distribution assets in Saudi Arabia and will look to purchase more fuel stations in the country, the company announced in a statement to the Abu Dhabi Securities Exchange on Monday.
ADNOC Distribution’s board of directors will hold a meeting on 30 December to discuss the acquisition of fuel distribution assets in Saudi Arabia valued at SR37.5 million ($10 million), the statement said.
ADNOC Distrubution obtained a license to own, operate and manage fuel stations across Saudi Arabia in 2018, and opened two initial locations that same year - along the Riyadh-Dammam highway, and in the city of Hofuf in Al-Ahsa governorate.
Following the initial success of these first stations, with over 30% profits, ADNOC announced last year the company’s intention to expand operations in Saudi Arabi with additional services such as car wash and dining offering.
“We see the Saudi Arabian fuel market as large and fragmented with underdeveloped customer offerings,” said ADNOC’s 2020 Q3 Management Discussion and Analysis Report.
“We believe that ADNOC Distribution’s experience and strengths can be leveraged to introduce world-class fuel station and customer service standards in Saudi Arabia to capture growth.”
A subsidiary of the Abu Dhabi National Oil Corporation (ADNOC), ADNOC Distribution was established in 1973 and it’s today the UAE’s largest fuel retailer energy company owned by the emirate of Abu Dhabi. With more than 400 stations through the UAE, ADNOC operates across the hydrocarbon value chain, including exploration, production, storage, refining, marketing and distribution.
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