Arab News, Tuesday, Dec 29, 2020 | Jamadi Al Awwal 14, 1442
Abu Dhabi’s ADNOC Distribution looks to acquire more fuel stations in KSA
Saudi Arabia: The Abu Dhabi National Oil Co. (ADNOC) for
Distribution is planning fuel distribution assets in Saudi Arabia, 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 Dec. 30 to
discuss purchasing fuel distribution assets valued at SR37.5 million ($10
million), the statement said.
The company obtained a license to own, operate and manage fuel stations across
Saudi Arabia in 2018, and opened two initial service stations along the Riyadh-Dammam
highway and in the city of Hofuf in Al-Ahsa governorate that same year.
Following the initial success of the stations, which saw profits of over 30
percent, last year the company said it intended to expand its operations in
Saudi Arabia and add additional activities such as car wash and dining
facilities.
The UAE company has been actively looking for growth opportunities abroad for
its diverse range of business sectors.
ADNOC Distribution revealed in its 2020 third-quarter report results that its
Saudi expansion has been progressing well, and it is in advanced discussions to
finalize land leases in the Kingdom.
“We see the Saudi Arabian fuel market as large and fragmented with
underdeveloped customer offerings,” ADNOC said in its Q3 Management Discussion
and Analysis Report for 2020.
“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.”
ADNOC Distribution, a subsidiary of the ADNOC Group, was established in 1973. It
is the UAE’s largest fuel retailer energy company owned by the emirate of Abu
Dhabi, and operates across the hydrocarbon value chain, including exploration,
production, storage, refining, marketing and distribution.