Adnoc distribution Q1 profit slides on provisions and inventory revaluation but revenue edges up – The National

Adnoc distribution Q1 profit slides on provisions and inventory revaluation but revenue edges up – The National

Despite unprecedented market conditions and challenges posed by the pandemic, the company says it remains in a strong financial position. Adnoc Distribution, the UAE's largest fuel and convenience retailer, reported a 31 per cent drop in first quarter net income on the back of provisions and revaluation of commercial business inventory but revenues edged up.. Net profit for the quarter ending March 31 declined to Dh400 million, the company said in a filing on Tuesday to the Abu Dhabi Securities Exchange, where its shares trade.. Despite the unprecedented market conditions and the uncertainties ahead, the company said it remains in a strong financial position and is well-placed to navigate the challenges posed by the coronavirus pandemic.. "We have shown strength and agility as a business," Ahmed Al Shamsi, acting chief executive of Adnoc Distribution, said.. Adnoc Distribution's retail fuel business posted strong operational performance, with retail fuel gross profit growing 13.1 per cent year-on-year in the first quarter, on higher margins and volume growth in the first two months of the year.. Although retail fuel volumes declined 1.9 per cent in the quarter, due mainly to the business impact of Covid-19 in March, commercial fuel volumes remained stable