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Eshraq Investments announces AED 35.99 million profit for Q2
2023
• Total operating income sees a significant increase of 2,446.7%
• Net profit for Q2 2023 soars by 609.3%
• Marks record occupancy rates for Nuran and Marina Rise developments
Abu Dhabi, UAE; 7 August 2023: Eshraq Investments PJSC ("Eshraq" or
"Company"), listed on the Abu Dhabi Securities Exchange ("ADX"), Eshraq
Investments PJSC ("Eshraq" or "Company"), listed on the Abu Dhabi Securities
Exchange ("ADX"), announced its financial results for the first six months of the
year.
Eshraq Investments marks a strong turnaround in financial performance in Q2
2023. The Company reported a notable increase in total operating income and
net profit. The Total Operating Income showed a remarkable surge, increasing
by 2,446.7% to reach Total operating income of AED 44.31 million from Total
operating loss of AED 1.89 million in Q2 2022.
Similarly, Eshraq’s Net Profit showed substantial turnaround, reversing from Net
loss of AED 7.07 million in Q2 2022 to Net profit AED 35.99 million in Q2 2023.
This represents a significant increase of 609.3% year-on-year.
These robust figures underscore Eshraq’s operational efficiency and its ability to
navigate challenging market conditions while delivering solid returns for its
shareholders.
Land Monetisation
To date, Eshraq has sold 7 land plots, representing total 27% of its existing land
bank by book value for a total sale consideration of AED 208 million. The
Company will continue to progress its land sale programme over the next 3 years
and generate revenue by monetizing non-revenue generating land assets through
the sale or engagement of partners to develop the land bank and its subsequent
sale. Eshraq will continue to explore more such opportunities to achieve cash
flows from all its assets.
Share Buy-Back
Page 1 of 3The Company continued to demonstrate its commitment to delivering
shareholder value through its ongoing share buyback programme. At the end of
the second quarter, Eshraq purchased an additional 108 million ordinary shares
with an aggregate value of AED 55.5 million at an average price of 0.5144 per
share. The share buyback has resulted in a gain to shareholders of AED 46.37
million on account of share buyback at discount to Eshraq’s book value as of
end of Q2 2023.
Leasing and hospitality businesses:
The Company’s residential apartments in Marina Rise and Nuran Marina hotel
apartments continue to register record occupancy rates. Up to June 2023,
Eshraq’s Marina Rise and Nuran Marina hotel apartments registered 95% and
94% average occupancy rates YTD respectively, reflecting their premium
standing in the market. The commercial operations generated AED 8.3mn gross
profit in the first quarter.
In Q2 2023, Eshraq finalised the sale of 58 apartment units in Burj Daman for
a total consideration of AED 162.01 million in cash, enabling the Company to
settle the outstanding mortgage and redeploy the proceeds in other investment
opportunities.
Commenting on the results, Mr. Jassim Alseddiqi, Eshraq's Chairman, said:
“We are pleased to report incredibly strong results in the second quarter of 2023
as we accrue the benefits of steady progress in our diversification strategy,
supported by profitable real estate investments. We remain on track with our
three-year plan to divest non-income generating assets and deploy the proceeds
towards profitable investments that deliver value to shareholders.
“Our results demonstrate that Eshraq has embarked on a new phase of growth.
In line with our business updates, we will be soon making announcements about
senior appointments that will contribute to strengthening our investor
proposition. We will always remain strategic and opportunistic about
investments that strengthen our asset portfolio and create increased value for
our shareholders.”
-END-
Page 2 of 3***
About Eshraq Investments:
Eshraq Investments is an investment Company based in Abu Dhabi, UAE, with
assets of more than AED3 billion in real estate, public equities, fixed income,
private equity and debt products. For further information, please visit
www.eshraquae.com.
For media enquiries on Eshraq, please contact:
Omar Nasro
Associate Director
ASDA’A BCW
Dubai, UAE
Tel : 971-4-450-7600
Email : Omar.Nasro@bcw-global.com
Page 3 of 3 | positive |
نﻮﻴﻧﻮﻧﺎﻗ نﻮﺒﺳﺎﺤﻣ ﺖﻣﺎﻫ ﻲﺑ لا ﺶﺗا
HLB HAMT CHARTERED ACCOUNTANTS
Level 18, City Tower 2, Sheikh Zayed Road
P.O.Box : 32665, Dubai, United Arab Emirates
Tel: +971 4 327 7775, Fax: +971 4 327 7677
E-mail: info@hlbhamt.com
REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
TO THE BOARD OF DIRECTORS OF MANAZEL PJSC
Introduction
We have reviewed the accompanying interim condensed consolidated financial statements of Manazel
PJSC (the "Company") and its subsidiaries (together, the "Group") as of June 30 2023, comprising of
the interim consolidated statement of financial position as of June 30 2023, the related interim
statement of comprehensive income, changes in equity, cash flows for the six months period then
ended and explanatory notes. Management is responsible for the preparation and presentation of
these interim condensed consolidated financial statements in accordance with International Accounting
Standard 34, "Interim Financial Reporting (IAS. 34)". Our responsibility is to express a conclusion on
these interim condensed consolidated financial statements based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements 2410,
"Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review
of interim financial information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with International Standards on
Auditing and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying interim condensed consolidated financial statements are not prepared, in all material
respects, in accordance with IAS. 34.
Emphasis of matters
We draw attention to Note 16 to the consolidated financial statements; Group is carrying an
amount of AED 378 Million as receivable from Government related entities in respect of
infrastructure costs incurred by the Group on various developments amounting to AED 585
million during the period from 2007 to 2022. As per the management, they are in discussion
with the authorities and have submitted all the relevant documents to substantiate their claim.
But the outcome of the discussions and the timing of reimbursement is currently uncertain. Our
opinion is not modified in this regard.
We draw attention to Note 8 to the consolidated financial statements; one project with an
estimated cost of AED 622 million under development has been on hold for the past three
years. The management has restructured the development plan and appointed a main
contractor to resume the construction activities. According to the management, there is no
impairment as of June 30 2023, and all the costs incurred are recoverable. Our opinion is not
modified in respect of this matter.
Member of International, the global advisory and accounting network
www.hlbhamt.com
Dubai | Abu D habi | Sharjah | Fujairah | JAFZA | SAIF Zone | RAK
1REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
TO THE BOARD OF DIRECTORS OF MANAZEL PJSC
Emphasis of matters (continued)
We refer to Note 17 to the financial statements;The company recognizes the significance of
the ongoing financial restructuring and its potential impact on the financial statements. As
such, the notes to the financial statements provide information about the restructuring
initiatives, their objectives, and anticipated outcomes.
Dubai For HLB HAMT Chartered Accountants
August 12, 2023 Signed by Vijay Anand
Partner
Ref: HAMT/SUG/2022/6980 [Reg. No. 654]
Member of International, the global advisory and accounting network www.hlbhamt.com
2MANAZEL PJSC
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months period ended June 30 2023 (unaudited)
Notes Six months ended June 30
2023 2022
AED ’000 AED ’000
Revenue 5 49,329 45,340
Cost of revenue 5 (25,961) (30,434)
GROSS PROFIT 23,368 14,906
Changes in fair value of investment properties, net -
Loss on sale of investment properties -
Finance costs 6 (60,133) (42,016)
Selling and marketing expenses (1,224) (10)
General and administrative expenses 7 (22,342) (22,903)
Other income 242 7,342
LOSS FOR THE PERIOD (60,089) (42,681)
Attributable to:
Ordinary equity holders of the Parent (60,089) (42,681)
Non-controlling interest - -
(60,089) (42,681)
Other comprehensive income:
Items not to be reclassified subsequently to profit or loss:
Loss on revaluation of property, plant and equipment - -
Items to be reclassified subsequently to profit or loss:
Profit/(loss) on hedging transactions - -
Other comprehensive income/(loss) for the period - -
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (60,089) (42,681)
Attributable to:
Ordinary equity holders of the Parent (60,089) (42,681)
Non-controlling interest - -
(60,089) (42,681)
(Loss)/Earnings per share
Basic and diluted 4 (0.02) (0.02)
The attached notes 1 to 18 form part of these interim condensed consolidated financial statements.
3 | neutral |
Dubai Investments Acquires Additional Stake in UK’s Monument Bank
Dubai, UAE, 8th Nov 2023: Dubai Investments, the leading investment company listed on the Dubai
Financial Market [DFM] has acquired additional 7.68% equity stake in Monument Bank Limited, a UK Based
Digital Bank regulated by the Financial Conduct Authority (UK) and the Prudential Regulation Authority
(UK) further increasing the Group’s holding in the Bank from 9.25% to 16.93%. This investment is subject
to necessary regulatory approvals. Dubai Investments had made an initial investment in Monument Bank
earlier this year.
Monument Bank, the UK-based digital bank, is at the forefront of transforming the banking experience with
innovative solutions and is uniquely positioned as the only UK bank focused exclusively on the mass-
affluent segment, supporting customers with deposit products, lending nearly £100m during the first year
of operation.
“Dubai Investments’ increased stake in Monument Bank, not only reiterates the Group’s confidence in the
bank’s potential but also its strategy and vision. Monument Bank's resilience and successful capital raise
rounds exemplify their promising growth trajectory, and the bank's progress in monetizing its technology
and business service verticals demonstrates its commitment to innovation and customer-centric solutions.
This investment also solidifies Dubai Investment’s presence in the dynamic digital banking landscape and
aligns with the Group’s vision to foster international collaborations”,said Khalid Bin Kalban, Vice
Chairman and CEO, Dubai Investments.
“Dubai Investments increased stake in Monument Bank not only solidifies our financial foundation but also
signifies a strong vote of confidence in our unique approach to banking. We are pleased to have
successfully completed the Series B funding round. The milestone is another testament of our investors’
continued belief in the Bank’s strategy, as we continue to move forward in our journey and accelerate our
path to profitability. Monument remains committed to serving the overlooked ‘mass affluent’ segment in the
UK, and eventually beyond the UK, having launched new features and products to further enhance the
client experience. “The business’ growth continues to accelerate, with savings balances exceeding £700m,
383% growth year to date. Our proposition and quality of service has successfully attracted mass affluent
clients, with our average balance now over £60,000, enabling us to scale with a laser sharp focus on our
community”, said Ian Rand, Monument Bank’s Chief Executive Officer.
As part of its ongoing growth strategy, Monument Bank recently concluded its successful Series B round
of investments raising over £40 million, backed by a combination of existing and new investors and since
inception has raised an impressive total of over £103 million, further solidifying a strong position for
continued growth.
“As Monument Bank thrives in this dynamic landscape, it's fitting to acknowledge the firm's nimbleness in
pursuing rapidly evolving opportunities within the large, overlooked market segment that Monument targets.
Our strengthened partnership with Dubai Investments is a meaningful step in advancing our strategic plans,
allowing us to leverage technological capabilities, expand operations, and increase influence in
international markets. The successful conclusion of this funding round is a testament to the robust
relationship we've built, and I am confident it will continue to grow, enabling us to capitalize on both current
and future opportunities in the months and years ahead”, added Mintoo Bhandari, Founder of Monument
Bank.
Since inception, Monument Bank has nurtured a thriving community of members, delivering an unmatched
level of service through the bank’s app, using email, video, chat, or calls, with an impressive track record
of over 90% of calls being answered within just 20 seconds. Monument Lifestyle, an app launched earlier
this year, offers in excess of 35 services designed to save busy professionals, entrepreneurs, and their
families’ time in optimising wealth creation potential.
Alpen Capital (ME) Limited, a financial advisory firm in Dubai served as the advisor to the transaction.
Ends | positive |
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FINANCE HOUSE
P.J.S.C - s p un
Date: 9 November 2022
Ref: 36/FC/TKR/2022
Chairman's Report for the nine months ended 30 September 2022
On behalf of the Board of Directors, I am pleased to present the condensed consolidated interim financial
statements of Finance House PJSC and its subsidiaries (FH Group) as at 30 September 2022 and the results
of its operations for the nine months ended 30 September 2022.
FH Group has posted a Net Profit of AED 20.17 million for the nine months ended 30 September 2022
compared to AED 19.82 million registered during the corresponding period of the previous year.
Net Fee & Commission income was higher at AED 14.13 million in the first nine months of 2022 compared
to AED 12.44 million in the same period of the previous year.
Aggregate of Net Investment & Other Operating Income during the first nine months of 2022 was higher
at AED 35.22 million compared to AED 31.04 million in the corresponding period of the previous year.
We remain optimistic that local & global equity and fixed income markets will remain relatively stable
for the rest of this financial year, despite political uncertainties and continued monetary tightening by
central banks around the globe.
Net Interest Income and Income from Islamic Financing and Investing Assets held steady at AED 99.82
million in the first nine months of 2022 compared to AED 100.76 million in the same period last year. A
planned downsizing of our unsecured exposure in the Retail Finance lending book and accelerated
repayment of funded facilities by some of our existing corporate borrowers, were substantially mitigated
by sourcing new corporate borrowers. Due to intense price competition in the UAE Insurance Sector, Net
Insurance Income was lower at AED 25.47 million in the first nine months of 2022 compared to AED
31.26 million in the corresponding period of the previous year.
Net Loans & Advances including Islamic Financing & Investing Assets as of 30 September 2022 were
marginally lower at AED 2.08 billion compared to AED 2.11 billion as at 31 December 2021. Customers'
Deposits & Margin Accounts as of 30 September 2022 stood at AED 1.69 billion compared to AED 1.72
billion as at 31 December 2021. Consequently, the loan book continues to be substantially funded by the
deposit book, reflecting the Group's cautious and balanced approach to asset & liability growth.
Total Operating Expenses at the consolidated level were slightly higher at AED 121.61 million in the first
nine months of 2022 compared to AED 118.96 million in the corresponding period of the previous year.
Following the pandemic period, we are repositioning ourselves to resume business growth in targeted
segments, which has necessitated selective hiring of qualified personnel.
FH's loan loss provisioning policy continues to be prudent. With the implementation of IFRS 9 based
credit impairment provisioning (expected credit loss model) effective 1 Jan 2018, loan loss provision set
aside in the first nine months of 2022 was AED 28.94 million compared to AED 36.31 million in theJ---- jg— oJlJIjIzd
FINANCE HOUSE
P.J.S.C - fi.puil
Date: 9 November 2022
Ref: 36/FC/TKR/2022
corresponding period of the prior year. Effective collection and recovery strategies implemented across
Retail Finance and Commercial Finance Lending Portfolios are beginning to show encouraging results,
thereby moderating the requirement for incremental credit impairment provisions compared to the
previous year.
The FH Group's liquidity position as of 30 September 2022 continues to be strong, with Cash & Cash
equivalents accounting for 16.9% of Total Assets. Similarly, Capital Adequacy Ratio at the consolidated
level as of 30 September 2022 continues to be robust at 26.3%, providing a solid footing for sustained
future growth in assets.
With ongoing investments into shoring our digital sourcing and servicing capabilities, we are well
positioned to profitably leverage economic growth opportunities as local, regional and global economies
emerge from the adverse impacts of the pandemic, recent global events and monetary tightening by
central banks.
Vice Chairman
Abu Dhabi
09 November 2022
Page 2 of 2
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Finance House P.J.S.C; P.O. Box 7878, Abu Dhabi, U.A.E; Tel: *971 (2) 621g ggg
Public Joint Stock Company and the share capital is AED 310,049,961 y-aljlal YA f AA“H aj j. aj Jl «odj—j S— £. a .... S_S | positive |
Aldar posts 22% YoY increase in Q1 net profit with record
quarterly development sales of AED 4.5 billion and
strong contributions from recurring income portfolio
Abu Dhabi, UAE: 03 May 2023
Revenue Gross Profit EBITDA Net Profit
Q1 AED 3.1 bn AED 1.3 bn AED 955 mn AED 836 mn
2023 + 14% YoY + 18% YoY + 18% YoY + 22% YoY
Group Q1 2023 Highlights
▪ Cross-platform growth driven by ongoing ▪ Solid performance across Aldar’s diversified
execution of development revenue backlog, investment portfolio driven by a buoyant rental
strong quarterly development sales and rising market and rising occupancy across the
recurring income from investment properties, portfolio, with recent acquisitions performing
reflecting the evolution of Abu Dhabi’s real estate above expectations.
market.
▪ Significant dry powder for disciplined capital
▪ Record quarterly development sales of AED 4.5 deployment to drive earnings growth, build
billion supported by increased demand from scale, and enhance diversification.
overseas and resident expat buyers in the UAE.
▪ Healthy liquidity position with AED 6.1 billion of
▪ Highest ever development revenue backlog of free cash and AED 4.4 billion of committed
AED 18.8 billion providing revenue visibility over undrawn facilities; well placed to capture
the next 2-3 years. attractive growth opportunities.
▪ Expansion of Aldar's strategic landbank through ▪ Aldar leads the way in climate action with the
the acquisition of Al Fahid Island, adding a unique launch of its comprehensive Net Zero Plan
waterfront offering to its development pipeline. outlining its commitment to decarbonize the
business by 2050.
▪ Entry into Dubai real estate market through a joint
venture with Dubai Holding to develop three new ▪ In April, Moody’s reaffirmed Aldar Properties’
communities across 3.5 million sqm of land. Baa2 rating and Aldar Investment Properties’
Baa1 rating with a stable outlook for both,
▪ A joint venture partnership with Mubadala to
reflecting the company’s sizeable development
develop commercial assets in Al Maryah Island,
landbank, diversified recurring income portfolio,
capitalising on the high demand for prime office
strong liquidity position, and prudent approach
spaces in Abu Dhabi’s growing international
to financial management.
finance centre.TALAL AL DHIYEBI
“
GROUP CHIEF EXECUTIVE OFFICER OF ALDAR PROPERTIES
“Aldar has maintained positive momentum in the first quarter of 2023,
reporting a strong set of results against the backdrop of positive economic
fundamentals in the UAE.
During Q1, we launched a variety of new residential concepts in Abu Dhabi that proved
incredibly popular amongst investors locally and overseas. The success of these launches
paved the way for our highest ever quarterly sales of AED 4.5 billion and played a large part
in Aldar’s stellar performance during the first three months of the year. Aldar’s investment
platform continued to grow at pace driven by tenant occupancy of 93% across assets, strong
rental returns, and positive contributions from new acquisitions within the portfolio, particularly
the four office towers at ADGM.
As the UAE continues to broaden its appeal as a business and lifestyle destination, we expect
robust real estate market dynamics to sustain through 2023. Against this backdrop, Aldar will
continue to deploy capital in a disciplined manner across its platforms to drive our
transformational growth agenda.”
Business Unit Highlights
ALDAR DEVELOPMENT
This core business unit comprises three main segments: Property Development and Sales, which is responsible
for developing and marketing Aldar’s diverse and strategic land bank located in key investments zones across Abu
Dhabi, Dubai, and Ras Al Khaimah; Project Management Services, which manages Aldar's project management
business, including government housing and infrastructure projects in the UAE; and Egypt, which manages Aldar’s
investment in Egyptian real estate company SODIC.
Aldar Development Q1 2023 Q1 2022 % change
AED million
Revenue 1,917 1,777 8%
EBITDA 551 457 20%
Group Sales 4,549 2,191 108%
UAE sales 4,202 1,512 178%
▪ Aldar Development’s Q1 2023 revenue increased 8% YoY to AED 1.9 billion driven by ongoing
execution of the revenue backlog.
▪ Gross profit margin for the first quarter of 2023 stood at 40%, up from 37% in Q1 2022.
▪ EBITDA increased 20% YoY to AED 551 million.
▪ Group sales rose 105% to AED 4.5 billion, Aldar’s highest-ever quarterly sales, driven by strong
demand from a growing base of overseas and resident expat buyers in the UAE.
▪ Group revenue backlog reached a record AED 18.8 billion, providing strong visibility on the group’s
revenue across both the UAE and Egypt with revenue recognition expected over the next 2-3 years.▪ Project management services backlog of AED 62 billion demonstrates the long-term nature of the
franchise.
UAE Operations:
▪ Total sales for Q1 2023 reached a record AED 4.2 billion, up 178% YoY, driven by high demand for
existing inventory and new launches including The Sustainable City, Saadiyat Lagoons, Yas Park
Views, Fay Al Reeman, Reeman Living, and Manarat Living.
▪ Sales from overseas and expat buyers reached a record AED 1.9 billion demonstrating the
continued appeal of Aldar’s growing offering and Abu Dhabi’s emergence as a premier investment
and lifestyle destination.
▪ Revenue backlog of AED 14.7 billion with an average duration of 29 months.
▪ Cash collections for Q1 2023 stood at AED 1.2 billion.
Egypt Operations:
▪ SODIC contributed AED 177 million to Aldar Development’s Q1 2023 revenue, with EBITDA
standing at AED 23 million.1
▪ SODIC’s Q1 2023 sales reached AED 346 million (EGP 2.7 billion).1
▪ Revenue backlog for SODIC reached AED 4.1 billion (EGP 34 billion), with an average duration of
27 months, providing strong visibility on revenue over the next 2-3 years. 2
▪ SODIC continues to maintain a strong liquidity position with total cash and cash equivalents
amounting to AED 223 million (EGP 1.9 billion). 2
ALDAR INVESTMENT
Aldar Investment comprises four main segments representing over AED 32 billion of assets under management.
Investment Properties houses Aldar’s core asset management business comprising over AED 24 billion of prime
real estate assets across retail, residential, commercial, and logistics segments. Hospitality and Leisure owns a
AED 4.5 billion portfolio of hotel and leisure assets principally located on Yas Island, Saadiyat Island, and Ras Al
Khaimah. Aldar Education is the leading private education provider in Abu Dhabi with managed schools footprint
extending across UAE. Principal Investments includes Provis, the property management business, Khidmah, the
facilities management business, Spark Security Services, and Pivot, a construction services business.
Aldar Investment3 Q1 2023 Q1 2022 % change
AED million
Revenue 1,247 859 45%
Adjusted EBITDA4 536 374 43%
Occupancy (Investment Properties)5 93% 92% -
1 EGP figures stated at the average exchange rate during the quarter (EGP/AED 0.127990)
2 EGP figures stated based on exchange rate as at 31/03/2023 (EGP/AED 0.119)
3 Excludes Pivot.
4 Aldar Investment EBITDA adjusted for fair value movements (excluding amortization of leasehold assets), reversal of impairments, and one-
off gains/losses on acquisitions.
5 Contracted or leased occupancy as of 31/03/2023.▪ Aldar Investment’s Q1 2023 revenue reached AED 1.2 billion, representing a 45% YoY growth
while Q1 2023 Adj. EBITDA rose 43% YoY to AED 536 million. The standout performance was
driven by higher occupancy rates, strong rental rates, and significant contributions from new
acquisitions across the portfolio.
▪ The Investment Properties Q1 2023 Adj. EBITDA6 increased 16% YoY to AED 347 million. This
was primarily driven by higher occupancy and rental rates across the portfolio, as well as positive
contributions from new acquisitions. Occupancy across the portfolio rose to 93% compared with
92% for the same period last year.
˗ Residential Q1 2023 Adj. EBITDA declined 11% YoY to AED 95 million, mainly attributed
to the sale of strata units. The overall portfolio showed continued strength as NOI increased
by 2% on a like-for-like basis and occupancy reached 95%. This is due to the excellent
location of its prime residential communities, unwavering focus on delivering high quality,
and enduring commitment to providing an exceptional customer experience.
˗ Retail Q1 2023 Adj. EBITDA held firm at AED 117 million supported by a strong occupancy
rate at 90%. Tenant sales and footfall in Yas Mall rose 30% and 48% respectively.
Meanwhile, the occupancy rate at Yas Mall stood at 99%, representing a 3-percentage
point increase compared to the same period last year.
˗ Commercial Q1 2023 Adj. EBITDA increased 89% YoY to AED 141 million driven primarily
by the successful execution of Aldar’s leasing strategy and the ongoing high demand for
prime Grade A office space in Abu Dhabi. Since the time of acquisition, market leasing rates
at the ADGM office towers have increased by more than 10%, with occupancy rising to 97%
from 79%. Likewise, occupancy at International Tower and HQ Building increased to 91%
and 92% respectively driven by higher leases from both global corporate firms and GREs.
Al Maryah Tower, set to be tenant-ready in August 2023, continues to benefit from the
strong leasing pipeline with the emergence of Grade A commercial pre-leasing market in
Abu Dhabi.
˗ Aldar Logistics recorded a Q1 2023 Adj. EBITDA of AED 13 million. Occupancy across
the logistics portfolio stood at 89%.
˗ In April, Moody’s reaffirmed Aldar Investment Properties’ (AIP) Baa1 rating with stable
outlook citing AIP’s strong market position in Abu Dhabi, AIP’s high quality and diversified
investment property portfolio, and the ongoing recovery and positive real estate market
outlook in Abu Dhabi.
▪ The Hospitality and Leisure business continues to benefit from a busy entertainment, leisure, and
business events calendar and the return of travel and tourism more broadly. Q1 2023 EBITDA
surged 417% YoY to AED 116 million driven by positive contributions from new acquisitions as well
as higher occupancy and average daily rates (ADR). Occupancy across the portfolio stood at 74%,
up from 69% as at the end of Q1 2022. ADR increased to AED 596 across the portfolio, up 65%
compared to the same period last year.
▪ Aldar Education Q1 2023 EBITDA increased 14% YoY to AED 41 million driven by a 25% YoY
increase in enrolments to just under 33,000 students across 27 operated and managed schools, up
from over 26,000 students and 20 schools as at the end of Q1 2022.
▪ The Principal Investments7 witnessed a 96% YoY increase in Q1 2023 EBITDA to AED 32 million
largely driven by contributions from recent acquisitions – which have added considerable scale to
the platform – and significant growth in the value of contracts.
6 EBITDA adjusted for fair value movements (excluding amortization of leasehold assets), reversal of impairments, and one-off gains/losses
on acquisitions.
7 Excluding PivotESG Highlights
As one of the UAE’s leading real estate developers, Aldar has a duty to uphold best practice
international ESG standards. ESG is a core pillar of the company’s long-term growth strategy, with
strong governance and responsible environmental and social impact integrated into its
investment processes and business decisions. Highlights of Aldar’s ESG activities this quarter
include:
▪ In January, Aldar launched its Net Zero Plan, with a commitment to becoming a Net Zero carbon
business (“Net Zero”) across its Scope 1, Scope 2, and Scope 3 greenhouse gas (“GHG”) emissions
by 2050. Aldar also set science-aligned 2030 interim targets, which will see it achieve Net Zero in
its Scope 1 and Scope 2 GHG emissions and deliver a 45% reduction in the intensity of its Scope 3
GHG emissions relative to the company’s 2021 baseline.
▪ In February, Aldar and the Ministry of Climate Change and Environment (‘MOCCAE’) launched a
Real Estate Climate Pledge. By signing the Pledge, the signatories will be supporting the UAE’s Net
Zero by 2050 Strategic Initiative through a commitment to publishing their own decarbonisation
targets before COP 28 as well as sharing data and best practices to help improve carbon emissions
and reporting throughout the lifecycle of a real estate asset.
▪ In Q1 2023, Aldar renewed its strategic partnership with Special Olympics UAE until 2025 and
reinforced its long-standing partnership with Emirates Red Crescent by signing a new year-long
agreement to cooperate on humanitarian efforts.
▪ At the end of the first quarter, UAE Nationals represented 41% of Aldar’s head office employees,
with Emiratis now forming 66% of Aldar’s leadership team. Aldar also received awards from NAFIS
during Q1 in recognition of outstanding Emiratisation efforts within the private sector.
-ENDS-
For further information, please contact:
Media
Obaid Al Yammahi Sarah Abdelbary
Aldar Properties Brunswick
+971 2 810 5555 +971 2 234 4600
aldar@brunswickgroup.com
Investor Relations
Omar Nashaat
Aldar Properties
+971 2 810 5555
About Aldar
Aldar Properties PJSC is the leading real estate developer, investor, and manager in the UAE with a diversified and sustainable
operating model centered around two core businesses: Aldar Development and Aldar Investment.
Aldar Development is a master developer of integrated, liveable, and thriving communities across Abu Dhabi’s most desirable
destinations, including Yas Island, Saadiyat Island, Al Raha, and Reem Island. It is responsible for developing Aldar’s c. 69
million sqm land bank and includes three businesses: Aldar Projects, which is Aldar's dedicated project delivery arm and the
manager of its project management business; Aldar Ventures, which incubates and nurtures new business opportunities and
innovation areas; and Aldar Egypt, the platform focused on developing mixed-use communities in Egypt.
Aldar Investment houses Aldar’s core asset management business comprising over AED 32 billion portfolio of investment
grade and income-generating assets diversified across retail, residential, commercial, hospitality, and logistics segments. Aldar
Investment also manages three core platforms: Aldar Education, Aldar Estates, and Aldar Hospitality and Leisure. AldarEducation includes Aldar’s entire educational portfolio, with almost 33,000 students across 27 operated and managed schools,
and a growing network of 3,000 educators from over 100 nationalities, offering a wide range of curriculum and ancillary services
such as a Teacher Training Academy. Aldar Estates consolidates Aldar’s Retail Operations alongside existing Residential and
Commercial real estate operations within Provis and will further include Community Management under one integrated
property management platform. Aldar Hospitality and Leisure looks after Aldar’s portfolio of hotel and leisure assets, which
are anchored around Yas Island and Saadiyat, in addition to Ras Al Khaimah. It includes Aldar’s portfolio of 13 hotels,
comprising over 4,250 hotel keys and managing operations across golf courses, beach clubs, and marinas.
Aldar’s shares are traded on the Abu Dhabi Securities Exchange (Stock quote: ALDAR:UH), and is a profitable, cash-
generative business that provides recurring revenues, and benefits from a diverse and supportive shareholder base. Aldar
operates according to high standards of corporate governance and is committed to operating a long-term and sustainable
business in order to provide ongoing value for its shareholders.
Aldar is driven by a vision to be a leading real estate developer and manager in the region by playing a key role in the
development of quality, comfortable, desirable destinations that people can live in, work at and visit.
For more information on Aldar please visit www.aldar.com or follow us on: | positive |
Q2 2023 Results Report
Fertiglobe Reports Q2 2023 Results
Highlights:
•
Fertiglobe reported Q2 2023 revenues and adjusted EBITDA at $552 million and $218 million, respectively.
Adjusted net profit and free cash flows during the quarter were $84 million and $60 million, respectively.
•
Fertiglobe's H1 2023 revenues and adjusted EBITDA were $1,245 million and $516 million, respectively.
Adjusted net profit was $219 million in H1 2023, while free cash flows were $331 million.
•
In line with guidance, Fertiglobe's management proposed H1 2023 dividends of at least $250 million (subject
to Board approval in September 2023), underscoring the company's commitment to creating and returning
shareholder value. The exact payment date in October 2023 will be announced following Board approval.
•
Fertiglobe is making progress with its cost optimization initiatives and is on track to deliver $50 million
in annualized run rate savings as of the end of 2024. Approximately 25-30% of the run rate savings are
expected to be realized by the end of 2023, with the rest to be realized over 2024.
•
Fertiglobe is making progress with its sustainability-focused projects and is expected to start the Front End
Engineering Design (FEED) process for its green hydrogen to ammonia projects in the UAE and Egypt
during H2 2023. In addition, the final investment decision (FID) on the Ta'ziz 1mtpa low carbon ammonia
project is expected in the coming months.
•
Market Outlook:
◦
Nitrogen prices bottomed in Q2 and have begun rebounding into Q3, with Egypt urea prices up ~60%
from trough levels in June 2023, underpinned by demand recovery, record low inventories and very
tight supply.
◦
Decade-low grain stocks driving rising crop futures and favorable farm economics incentivize significant
increases in nitrogen demand, and support nitrogen price recovery
◦
New capacity that was added and ramped up during 2022 and early 2023 has been absorbed, with
limited new supply additions expected in the next four years
◦
Warm weather is leading to higher gas demand for residential cooling, and causing reductions in global
ammonia production in some countries as a result
Abu Dhabi, UAE – 02 August 2023: Fertiglobe (ADX: FERTIGLB), the strategic partnership between ADNOC
and OCI Global, the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen
fertilizer producer in the Middle East and North Africa (“MENA”) region, and an early mover in sustainable
ammonia, today reported Q2 2023 revenue of $552 million, adjusted EBITDA of $218 million, adjusted net profit of
$84 million, and free cash flow of $60 million. Q2 2023 results were impacted by lower selling prices, as volatility
in European gas prices continued while markets saw increased supply from capacities commissioned in 2022,
coinciding with the end of the demand season in the northern hemisphere.
Ahmed El-Hoshy, CEO of Fertiglobe, commented:
“We are pleased to see that nitrogen markets bottomed during the second quarter and are tightening rapidly, with
a strong price trajectory in recent weeks despite the traditional summer lull for fertilizers. Looking ahead, we
believe that limited incremental supply additions over the next several years, coupled with healthy farm economics,
which incentivize nitrogen fertilizer application, and elevated marginal production costs in Europe continue to
1Q2 2023 Results Report
support a favorable nitrogen outlook in the medium to longer term. We expect more permanent closures of
European marginal production, if ammonia pricing continues to persist below marginal production costs.
Our overall sales volumes were lower compared to Q2 2022, primarily due to a higher base effect given deferrals
from Q1 to Q2 last year. However, going into H2 2023, we are well-positioned to service demand emerging
from key regions, leveraging our centralized distribution capabilities and targeting demand centers that offer the
highest netbacks, further supported by the reinstatement of urea and ammonia import duties into Europe.
We are excited to continue to diversify our product offering via Diesel Exhaust Fuel (DEF) sales from our
plants in Egypt into Europe, where demand for the product is supported by increasingly stricter emission
regulations. We also continue to progress our sustainability-focused projects, including the Ta'ziz 1mtpa low
carbon ammonia project and the low carbon ammonia pilot in the UAE at Fertil. We expect to commence the Front
End Engineering Design (FEED) process for our green hydrogen project in the UAE and our full scale green
hydrogen project in Egypt during H2 2023. We continue to take significant steps towards achieving a more
sustainable footprint for our production as well as for others. We look forward to providing further updates in the
coming months.
Our solid balance sheet position and cash flow management allow us to pursue these growth initiatives while
also balancing shareholder returns. We are pleased to propose H1 2023 dividends of at least $250 million or the
equivalent of at least AED 11 fils per share, subject to board approval, expected to be paid during October 2023.
As previously highlighted, we are actively implementing several management initiatives aimed at supporting our
free cash generation across cycles. Our cost optimization initiatives target $50 million in recurring annualized
savings by the end of 2024, with 25-30% of these savings planned to be achieved this year. Our key focus areas
include operating model enhancements and improvements in logistical capabilities (together contributing ~60% of
the run rate savings) as well as operational cost and spending efficiencies. In addition, we are already starting to
see positive results from our manufacturing improvement plan, and are on track to deliver operational and cost
efficiencies by 2025. The commitment of the Fertiglobe team to maintaining best-in-class safety, performance, and
excellence standards is a significant factor in driving our success, and I am very thankful for their dedication.”
Market Outlook
Fertiglobe believes the outlook for nitrogen markets continues to be supported by crop fundamentals,
elevated European gas pricing and tightening supply dynamics in the medium-term
•
Nitrogen prices bottomed in Q2 and have begun rebounding into Q3, underpinned by several
factors, including:
◦
Demand recovery: The recent decline in nitrogen pricing has improved affordability for farmers
by ~20% since January 2023 and more than 30% since Q2 2022, accelerating demand growth
for nitrogen
◦
Record low inventory levels: The 2022-2023 fertilizer application season concluded with the lowest
inventory levels in the past five years particularly in North America
◦
Tightening supply: The new capacity that was added and ramped up during 2022 and early 2023 has
been absorbed, with limited new supply additions in the next four years
◦
El Niño impact: The rapid emergence of El Niño has raised concerns about crop yields in the
southern hemisphere, which could lead to higher crop prices, supporting the use of nitrogen fertilizers
in the medium-term; it is also reducing gas availability for the production of ammonia
2Q2 2023 Results Report
◦
Normalization of trade flows: Following the EU's removal of duty suspension on ammonia and
urea in June 2023, with North African product exempt, Fertiglobe is expected to benefit from a
normalization of trade flows
◦
India imports to step up: it is expected that import demand from India will increase from 2.5 Mt in
H1 to ~4 Mt urea in H2 2023, with potential further upside in H2 due to recent rains and flooding, an
earlier-than-expected new tender, and recent reduced domestic production run-rates
•
Medium to long term nitrogen fundamentals also remain healthy, with anticipated demand recovery
supporting the rebuilding of global grain stocks and a return of industrial demand:
◦
Global grain stock-to-use ratios remain at the lowest levels in 20 years, and it will likely take at least
until 2025 to replenish stocks
◦
Forward grain prices (US corn futures >$5/bushel to the end of 2025 compared to $3.7/bushel during
2015 - 2019, and US wheat futures >$7/bushel, compared to $4.8/bushel during 2015 - 2019) support
farm incomes and incentivize nitrogen demand to be above historical trend levels
◦
Ammonia markets appear to have stabilized, with higher cost economics, particularly in the East
of Suez region, setting a firm floor. The increased fertilizer demand due to improved affordability is
currently offsetting the lag in industrial demand recovery.
■ Industry consultants expect a recovery in global ammonia trade from trough levels of ~17 million
tons in 2022 and 2023 back towards historical levels of ~19+ million tons per annum
•
Nitrogen supply is expected to be tighter over 2023 – 2027:
◦
In 2022, 6 million tons of new urea capacity were commissioned, with some plants ramping up in
2023, but now largely absorbed
◦
Industry consultants do not anticipate any major greenfield urea supply additions in 2023 and limited
additions from 2024 to 2027, located mostly in Russia, generating a global supply/demand gap of
~4 million tons
◦
Chinese urea exports are expected to remain low over the medium term, in the range of 3 mtpa
•
Feedstock pricing is expected to remain well above historical averages:
◦
Despite a recent drop in gas prices, 2023 - 2025 forward European gas prices are c.$15/mmBtu (or
c.3x higher than 2015-2019), with higher prices anticipated for next winter
◦
It is expected that El Niño could increase the demand for natural gas for summer cooling, which could
result in upward pressure on natural gas prices and increased marginal cost of nitrogen production
◦
Current ammonia prices are below the marginal cash cost producer in Europe:
■ The gas forwards imply marginal cost support levels for ammonia of c.$750/t (including full
impact CO ) and ~$590/t (excluding CO ) for next winter and 2024, which could result in
2 2
temporary or permanent closures of European marginal production if pricing remains below cost
for an extended period
3Q2 2023 Results Report
Dividends and capital structure
As at the end of June 2023, Fertiglobe reported a net debt position of $66 million, compared to a net cash of
$287 million as of 31 December 2022, allowing the company to balance future growth opportunities and dividend
pay-out. Fertiglobe's management proposed H1 2023 dividends of at least $250 million, in line with guidance,
subject to board approval in September 2023. Payment is expected to follow in October 2023.
Cost savings
Fertiglobe recently launched an initiative to further optimize its cost structure and reinforce its top quartile cash
cost positioning, targeting $50 million in recurring annualized savings by the end of 2024, of which 25-30%
are planned to be achieved this year. Key focus areas will be operating model enhancements, improvement
in logistical capabilities and operational cost and spend efficiencies. In addition, Fertiglobe's manufacturing
improvement plan is on track to deliver operational and cost efficiencies by 2025.
4Q2 2023 Results Report
Consolidated Financial Results at a Glance1
Financial Highlights ($ million, unless otherwise stated)
$ million unless otherwise stated Q2 2023 Q2 2022 % Δ H1 2023 H1 2022 % Δ
Revenue 551.5 1,471.3 (63%) 1,245.2 2,656.1 (53%)
Gross profit 174.4 747.8 (77%) 443.5 1,335.6 (67%)
Gross profit margin 31.6% 50.8% 35.6% 50.3%
Adjusted EBITDA 218.2 770.0 (72%) 515.5 1,394.6 (63%)
Adjusted EBITDA margin 39.6% 52.3% 41.4% 52.5%
EBITDA 217.3 770.0 (72%) 512.5 1,389.6 (63%)
EBITDA margin 39.4% 52.3% 41.2% 52.3%
Adjusted net profit attributable to shareholders 83.9 438.2 (81%) 219.3 799.2 (73%)
Reported net profit attributable to shareholders 79.2 429.4 (82%) 214.9 786.0 (73%)
Earnings per share ($)
Basic earnings per share 0.010 0.052 (82%) 0.026 0.095 (73%)
Diluted earnings per share 0.010 0.052 (82%) 0.026 0.095 (73%)
Adjusted earnings per share 0.010 0.053 (81%) 0.026 0.096 (73%)
Earnings per share (AED)
Basic earnings per share 0.035 0.190 (82%) 0.095 0.348 (73%)
Diluted earnings per share 0.035 0.190 (82%) 0.095 0.348 (73%)
Adjusted earnings per share 0.035 0.194 (82%) 0.095 0.354 (73%)
Free cash flow 59.9 788.7 (92%) 331.3 1,309.5 (75%)
Capital expenditure 34.5 14.6 136% 47.2 24.0 97%
Of which: Maintenance Capital Expenditure 30.7 13.0 136% 41.7 19.8 111%
30 June 23 31 Dec 22 % Δ
Total Assets 5,451.2 5,530.6 -1%
Gross Interest-Bearing Debt 1,620.7 1,155.2 40%
Net Debt/(Cash) 66.3 (286.8) n/m
Q2 2023 Q2 2022 % Δ H1 2023 H1 2022 % Δ
Sales volumes (‘000 metric tons)
Fertiglobe Product Sold 1,414 1,540 (8%) 2,777 2,794 (1%)
Third Party Traded 148 236 (37%) 313 512 (39%)
Total Product Volumes 1,562 1,776 (12%) 3,090 3,306 (7%)
1 Unaudited
5Q2 2023 Results Report
Operational Highlights
Operational Performance Highlights:
•
12-month rolling recordable incident rate to 30 June 2023 of 0.13 incidents per 200,000 manhours.
•
Ammonia and urea production volumes were higher YoY in Q2 2023 despite the turnaround at
Sorfert (Algeria).
•
Fertiglobe's Q2 2023 performance was impacted by lower selling prices as well as lower sales volumes
compared to the same period last year, primarily due to a high base effect given deferrals from Q1 2022 to
Q2 2022 and higher ammonia ending inventories in Q2 2023.
•
Fertiglobe’s total own-produced sales volumes were down 8% to 1,414kt in Q2 2023 vs Q2 2022, driven by:
◦
A 19% decrease in ammonia own-produced sales volumes to 290kt from 357kt in Q2 2022
◦
A 6% decrease in urea own-produced sales volumes to 1,117kt YoY compared to 1,183kt in Q2 2022
•
Traded third party volumes decreased 37% YoY to 148kt in Q2 2023, compared to 236kt in Q2 2022.
•
Total own-produced and traded third party volumes of 1,562kt were down 12% in Q2 2023 compared to
Q2 2022.
•
In H1 2023, Fertiglobe’s total own-produced sales volumes were down marginally by 1% to 2,777kt
compared to H1 2022, driven by:
◦
A 9% decrease in ammonia own-produced sales volumes to 526kt from 580kt in H1 2022, and
◦
Relatively unchanged urea own-produced sales volumes of 2,244kt.
•
Traded third party volumes were down 39% YoY to 313kt in H1 2023.
•
Total own-produced and traded third party volumes of 3,090kt were down 7% in H1 2023 compared to
H1 2022.
6Q2 2023 Results Report
Product sales volumes
Sales volumes ('000 metric tons) Q2 2023 Q2 2022 % Δ H1 2023 H1 2022 % Δ
Own Product
Ammonia 290 357 (19%) 526 580 (9%)
Urea 1,117 1,183 (6%) 2,244 2,214 1%
DEF 7 - n/m 7 - n/m
Total Own Product Sold 1,414 1,540 (8%) 2,777 2,794 (1%)
Third-Party Traded
Ammonia 78 27 189% 109 79 38%
Urea 70 209 (66%) 204 433 (53%)
Total Traded Third-party Product 148 236 (37%) 313 512 (39%)
Total Own Product and Traded Third-party 1,562 1,776 (12%) 3,090 3,306 (7%)
Benchmark prices1
Q2 '23 Q2 '22 % Δ H1 2023 H1 2022 % Δ Q1 '23 % Δ
Ammonia NW Europe, FOB $/mt 386 1,240 (69%) 537 1,288 (58%) 688 (44%)
Ammonia Middle East, FOB $/mt 256 965 (73%) 436 992 (56%) 615 (58%)
Granular Urea Egypt, FOB $/mt 335 795 (58%) 372 818 (55%) 409 (18%)
Granular Urea Middle East, FOB $/mt 302 721 (58%) 330 748 (56%) 359 (16%)
Natural gas TTF (Europe) $ / mmBtu 11.4 30.8 (63%) 14.1 31.5 (55%) 16.8 (32%)
Natural gas Henry Hub (US) $ / mmBtu 2.3 8.1 (72%) 2.6 6.3 (59%) 2.8 (18%)
1Source: CRU, MMSA, ICIS, Bloomberg
In Q2 2023, ammonia Middle East benchmark were down 73% YoY, while the urea Egypt benchmark price was
down 58%. Compared to Q1 2023, the ammonia Middle East benchmark was down 58%, while the urea Egypt
benchmark price was down 18%.
The decrease in sales volumes and selling prices during the quarter resulted in a 63% YoY decrease in revenues
to $552 million in Q2 2023. This translated into a 72% decline in adjusted EBITDA to $218 million in Q2 2023 from
$770 million in Q2 2022. As a result, Fertiglobe’s adjusted EBITDA margin dropped to 40% in Q2 2023 from 52%
in Q2 2022.
7Q2 2023 Results Report
Segment overview Q2 2023
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 502.9 48.6 - 551.5
Gross profit 175.6 (1.2) - 174.4
Operating profit 161.8 (2.9) (10.5) 148.4
Depreciation & amortization (66.8) (1.2) (0.9) (68.9)
EBITDA 228.6 (1.7) (9.6) 217.3
Adjusted EBITDA 228.6 (1.7) (8.7) 218.2
Segment overview Q2 2022
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 1,275.4 195.9 - 1,471.3
Gross profit 749.8 (2.0) - 747.8
Operating profit 724.5 (2.0) (15.3) 707.2
Depreciation & amortization (62.5) - (0.3) (62.8)
EBITDA 787.1 (2.0) (15.1) 770.0
Adjusted EBITDA 787.1 (2.0) (15.1) 770.0
Segment overview H1 2023
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 1,112.8 132.4 - 1,245.2
Gross profit 441.5 2.0 - 443.5
Operating profit 403.8 0.3 (27.9) 376.2
Depreciation & amortization (132.4) (1.7) (2.2) (136.3)
EBITDA 536.2 2.0 (25.7) 512.5
Adjusted EBITDA 538.3 2.0 (24.8) 515.5
Segment overview H1 2022
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 2,265.8 390.3 - 2,656.1
Gross profit 1,337.4 3.2 (5.0) 1,335.6
Operating profit 1,291.5 3.2 (29.9) 1,264.8
Depreciation & amortization (124.4) - (0.4) (124.8)
EBITDA 1,415.9 3.2 (29.5) 1,389.6
Adjusted EBITDA 1,415.9 3.2 (24.5) 1,394.6
8Q2 2023 Results Report
Financial Highlights
Summary results
Consolidated revenue decreased by 63% to $552 million in the second quarter of 2023 compared to the same
quarter in 2022, driven by lower selling prices and sales volumes.
Adjusted EBITDA declined by 72% YoY to $218 million in Q2 2023 compared to $770 million in Q2 2022.
Q2 2023 adjusted net profit attributable to shareholders was $84 million compared to an adjusted net profit
attributable to shareholders of $438 million in Q2 2022. Reported net profit attributable to shareholders was
$79 million in Q2 2023 compared to a net profit attributable to shareholders of $429 million in Q2 2022.
Consolidated statement of income
$ million Q2 2023 Q2 2022 H1 2023 H1 2022
Net revenue 551.5 1,471.3 1,245.2 2,656.1
Cost of sales (377.1) (723.5) (801.7) (1,320.5)
Gross profit 174.4 747.8 443.5 1,335.6
Other income 1.6 - 1.6 -
SG&A (27.6) (39.6) (68.8) (70.0)
Other expense - (1.0) (0.1) (0.8)
Adjusted EBITDA 218.2 770.0 515.5 1,394.6
EBITDA 217.3 770.0 512.5 1,389.6
Depreciation & amortization (68.9) (62.8) (136.3) (124.8)
Operating profit 148.4 707.2 376.2 1,264.8
Interest income 3.4 0.5 5.7 0.9
Interest expense (31.2) (25.2) (52.7) (42.0)
Other finance (expense)/income 4.4 5.3 (17.2) 21.2
Net finance costs (23.4) (19.4) (64.2) (19.9)
Net profit before tax 125.0 687.8 312.0 1,244.9
Income tax (16.6) (64.7) (14.8) (154.7)
Net profit 108.4 623.1 297.2 1,090.2
Non-Controlling Interest (29.2) (193.7) (82.3) (304.2)
Net profit attributable to shareholders 79.2 429.4 214.9 786.0
Adjusted net profit attributable to shareholders 83.9 438.2 219.3 799.2
9Q2 2023 Results Report
Reconciliation to Alternative Performance Measures
Adjusted EBITDA
Adjusted EBITDA is an Alternative Performance Measure (APM) that intends to give a clear reflection of
underlying performance of Fertiglobe’s operations. The main APM adjustments at the EBITDA level relate to
the movement in provisions and pre-operating expenditures related to projects during the quarter.
Reconciliation of reported operating income to adjusted EBITDA
$ million Q2 2023 Q2 2022 H1 2023 H1 2022 Adjustment in P&L
Operating profit as reported 148.4 707.2 376.2 1,264.8
Depreciation and amortization 68.9 62.8 136.3 124.8
EBITDA 217.3 770.0 512.5 1,389.6
APM adjustments for:
Movement in provisions - - 2.1 5.0 Cost of sales
Pre-operating expenditures related to projects 0.9 - 0.9 - SG&A expense
Total APM adjustments 0.9 - 3.0 5.0
Adjusted EBITDA 218.2 770.0 515.5 1,394.6
Adjusted net profit attributable to shareholders
At the net profit level, the main APM adjustments relate to the impact on non-cash foreign exchange gains and
losses on USD exposure as well as non-controlling interest.
Reconciliation of reported net profit to adjusted net profit
$ million Q2 2023 Q2 2022 H1 2023 H1 2022 Adjustment in P&L
Reported net profit attributable to shareholders 79.2 429.4 214.9 786.0
Adjustments for:
Adjustments at EBITDA level 0.9 - 3.0 5.0
Finance income
Forex loss/(gain) on USD exposure 10.6 (18.4) 11.3 (33.0) and expense
Other financial expense - 9.7 - 9.7 Finance expense
Uncertain tax
Non-controlling interest (6.8) 17.5 (9.9) 31.5 positions / minorities
Total APM adjustments at net profit level 4.7 8.8 4.4 13.2
Adjusted net profit attributable to shareholders 83.9 438.2 219.3 799.2
10Q2 2023 Results Report
Free Cash Flow and Net Debt/(Cash)
Free cash flow before growth capex amounted to $60 million during Q2 2023, compared to $789 million during
the same period last year, reflecting performance for the quarter, dividends paid to non-controlling interest and
withholding tax, working capital outflows, maintenance capital expenditures, interest and lease payments.
Total cash capital expenditures including growth capex were $35 million in Q2 2023 compared to $15 million in
Q2 2022, of which $31 million was related to maintenance capital expenditures, compared to $13 million in the
previous year. For 2023, management maintains its guidance for capital expenditures (excluding growth capital
expenditure) of $100-130 million.
Reconciliation of EBITDA to Free Cash Flow and Change in Net Debt/(Cash)
$ million Q2 2023 Q2 2022 H1 2023 H1 2022
EBITDA 217.3 770.0 512.5 1,389.6
Working capital (16.7) 93.0 (6.8) 13.6
Maintenance capital expenditure (30.7) (13.0) (41.7) (19.8)
Tax paid (11.1) (77.3) (32.8) (133.7)
Net interest paid (18.2) (11.3) (26.8) (23.0)
Lease payments (4.9) (5.7) (10.9) (7.0)
Dividends paid to non-controlling interests and withholding tax (83.1) (63.5) (83.1) (67.3)
Ecremage 7.3 96.5 20.9 157.1
Free Cash Flow 59.9 788.7 331.3 1,309.5
Reconciliation to change in net debt/(cash):
Growth capital expenditure (3.8) (1.6) (5.5) (4.2)
Other non-operating items (1.1) (2.9) 13.1 (2.9)
Net effect of movement in exchange rates on net debt/(cash) 15.3 0.5 9.4 (25.2)
Dividend to shareholders (700.0) (340.0) (700.0) (340.0)
Other non-cash items (0.8) (2.1) (1.4) (5.6)
Net Cash Flow in Net Debt/(Cash) (630.5) 442.6 (353.1) 931.6
11Q2 2023 Results Report
Investor and Analyst Conference Call
On 2 August 2023 at 3:00 PM UAE (12:00 PM London, 9:00 AM New York), Fertiglobe will host a conference call
for investors and analysts. To access the call please dial:
International: +44 20 3936 2999
UAE: +971 800 0357 04553
UK: +44 20 3936 2999 / Toll free: +44 808 189 0158
United States: +1 646 664 1960 / Toll Free: +1 855 9796 654
Passcode: 996655
Participants may also join via the webcast. Please pre-register and join here.
About Fertiglobe:
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, and an early mover in
sustainable ammonia. Fertiglobe’s production capacity comprises of 6.6 million tons of urea and merchant
ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer of
nitrogen fertilizers in the Middle East and North Africa (MENA), and benefits from direct access to six key ports
and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered in Abu Dhabi
and incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,700 employees and
was formed as a strategic partnership between OCI Global (“OCI”) and the Abu Dhabi National Oil Company
(“ADNOC”). Fertiglobe is listed on the Abu Dhabi Securities Exchange (“ADX”) under the symbol “FERTIGLB” and
ISIN “AEF000901015. To find out more, visit:www.fertiglobe.com.
For additional information, contact:
Fertiglobe Investor Relations: For additional information on Fertiglobe:
Rita Guindy www.fertiglobe.com
Director
Email: rita.guindy@fertiglobe.com
Hans Zayed
Director
Email: hans.zayed@fertiglobe.com
Investor.relations@fertiglobe.com
12 | positive |
Zoho Sign Document ID: JURBO7OBCM9VCIPMS3XS727FA22FYPZUECHBABIJW3M
discussion report and analysis of the board of directors for Al
Wathba National Insurance Company (PJSC)
Date 11th Nov,2022
Name of the Listed Company Al Wathba National Insurance Company (PJSC)
The period of the financial
Q3, 2022 Financials
statements covered by the report
GWP: AED 237.62 M
Overview of the main results Net Underwriting Income: AED 2.98 M
during the financial period Net Investment Income: AED 29.36 M
Net Profit: 32.34 M
Securities issued during the
NA
financial period
Summary of the most
important non-financial events IFRS 17 implementation is in progress.
and developments during the AWNIC extends self-service portal to corporate clients.
financial period
During this period, we have achieved total premiums of
237.62 million and insurance profit of 2.98 million dirhams.
Summary of operational
performance during the
The company has also registered net Investment profit of
financial period
29.36 million.
Net profit for the period is AED 32.34 million dirhams
Summary of profit and loss
compared to net profit of AED 173.95 million dirhams for the
during the financial period
previous period.
Summary of financial position Total Deposits & Cash: AED 158.36 M
as at the end of the financial Total Technical Reserve: AED 339.63 M
period Total Share Holders Equity: AED 961.50 M
Net Cash generated from operating Activities: AED (54.95) M
Summary of cash flows during
Net Cash Generated in Investing Activities: AED 145.28 M
the financial period
Net Cash Generated in Financing Activities: AED (74.86) M
Page 1 of 2Zoho Sign Document ID: JURBO7OBCM9VCIPMS3XS727FA22FYPZUECHBABIJW3M
GWP Growth: (12) %
Net Loss Ratio: 60.82%
Main performance indicators
Net Expense Ratio: 37.02%
Combined Ratio: 97.84%
Expectations for the sector and Motor insurance premiums are expected to go back to pre-
the company's role in these pandemic levels on account of pressure in margins and
expectations escalation in servicing costs.
GDP of UAE is expected to grow more than 5% for the current
fiscal year and the economic buoyancy is expected to continue
Expectations regarding the on account of visa reforms and FDI flows in real estate.
economy and its impact on the Premium growth in the industry is expected to continue and
company and the sector the market is expected to see more consolidations in FY 2023
on account of pressures on solvency ratios and regulatory
changes such as IFRS 17.
AWNIC is revisiting its motor portfolio strategy and is
Future for growth and changes
expected to continue its growth on the commercial insurance
in operations in future periods
portfolio.
The size and impact of current
and projected capital Net Capital expenses for the period was AED 1 Million.
expenditures on the company
The developments of the
implementation of projects,
plans and transactions and
Board is evaluating the impact of rising interest rates and its
deals that were discussed by
impact on the current loan facilities.
the company's board of
directors in the report for the
previous fiscal year
Bassam Chilmeran
Chief Executive Officer
Page 2 of 2 | positive |
Commercial Bank International
2022 Second Quarter Financial Results
Management Discussion and Analysis Report
The content is classified as PublicCBI Announces Q2 2022 Net Profit of AED 34 million
Dubai, UAE, 27th July 2022: Commercial Bank International (‘CBI’ or ‘the Bank’) has announced its
second quarter 2022 financial results.
Key financial result highlights (quarter-on-quarter changes from Q1 2022 to Q2 2022 respectively):
• Net profit increased by 67% from AED 20.6 million in Q1 2022 to AED 34.4 million in Q2 2022.
• Operating profit increased by 82% from AED 40.3 million to AED 73.2 million.
• Net operating income increased by 42% from AED 110.8 million to AED 157.6 million.
Commenting on the Bank’s Q2 performance, Ali Sultan Rakkad Al Amri, CEO of Commercial Bank
International, said: “We continue to support our customers and contribute strongly to economic growth in
line with the UAE’s strategy that focuses on growth and development. By further strengthening our core
client-centric business model, we have increased our profitability substantially in the second quarter,
delivering a net profit of AED 34 million, mainly through loan growth. Despite the ongoing challenges in the
global macroeconomic environment, we will continue to focus on providing our customers with high quality
services and help them realize their ambitions.”
---ENDS---
Ali Sultan Rakkad Al Amri
Chief Executive Officer
The content is classified as Public | neutral |
Press release Emirates
REIT
g. MANAGED BY EQDITATIVA GROUP
13 June 2023
Equitativa reports healthy Q1 2023 results for Emirates REIT:NAV per share increases to
USD 1.19/share.
KEY HIGHLIGHTS
ti
•Fair Value of Investment Properties up 5% year-on-year, closing at USD 797m (AED 2.9b) as at March 31, 2023.
•Net Asset Value increased by 21% year-on-year, closing at USD 380m (AED 1.4b), amounting to USD 1.19 per
share
•Occupancy stood at 84%.
•Q1 Total Property Income reached USD 17m (AED 63m).
•Net Unrealized Revaluation Gain on fair value of investment properties amounted to USD 10m (AED 38m) in
Q1.
•Q1 Net Profit amounted to USD 8m (AED 28m).
The REIT delivered net profit of USD 8 million for the first quarter of 2023 (Q1 2022: USD 23 million). A net unrealized
gain on portfolio revaluation of USD 10 million in the current period, compared to USD 20 million for the same period a
year ago, weighed on profitability. This reflects the strong rebound in commercial property valuations in 2022 which is
now beginning to normalize.
Occupancy across Emirate’s REIT’s stood at 84% as of March 31, 2023 as demand for the REIT’s portfolio of high quality
commercial and retail assets remained strong. On a like-for-like basis (excluding Jebel Ali School, sold in May 2022), this
represents a year-on-year increase of 5 percentage points. Overall demand remains supported by the UAE’s robust
economic outlook which has led to a significant increase in new businesses entering or expanding in the country.
As a result, Emirates REIT’s core rental, fee, and other income for the first quarter of 2023 was a healthy USD 17 million,
compared to USD 15 million for the first quarter of 2022 excluding Jebel Ali School, representing a year-on-year
increase of 14%. The Net Property Income closed at USD 14 million, increased from the USD 12 million achieved in Q1
1,1
2022 excluding Jebel Ali School, which is a like-for-like increase of 16%.
The REIT maintained a strong focus on cost optimisation and discipline, resulting in a 5% year-on-year decline in Fund
Expenses to USD 4 million in Q1 2023. This helped the REIT report a 3% year-on-year increase in operating profit to
USD 10 million.
The fair value of the REIT’s portfolio as at 31 March 2023 was USD 797 million, representing a 5% increase year-on-year.
The Net Asset Value increased 21% year-on-year to USD 380 million, equating to USD 1.19 per share.
Commenting on Emirates REIT’s performance, Sylvain Vieujot, Executive Deputy Chairman of Equitativa, said: “Emirates
REIT delivered a healthy set of operational results for the first quarter of 2023, demonstrating the continued strong
demand we’ve seen for our portfolio of high quality commercial and retail real estate assets. Occupancy across our
portfolio continues to increase as robust local economy continues to drive demand for commercial real estate in the
UAE and we remain optimistic that the country’s status as a leading global commercial hub will help unlock various
strategic options for the REIT. We look forward to capitalizing on this momentum and creating further value for all of
EMIRATES REIT (CEIC) PLC I DIFC, INDEX TOWER, LEVEL 23, DUBAI, UAE I PO BOX: 482015 I REIT.AE PAGE 1 OF 2
LICENSED BY DFSAour stakeholders.
Abdullah Al Hashemi is retiring from the Investment Board after 9 years of dedicated service. We deeply appreciated
his continuous support and guidance and I would like to express him all our gratitude.
We are delighted to announce the appointment of Helal Tariq Lootah on the Investment Board.”
For further information, including the Q1 2023 Factsheet, please refer to our Investor Relations Page.
Best regards,
Investor relations
ir@reit.ae
Equitativa (Dubai) Limited
DIFC, Index Tower, Level 23, Dubai, UAE
TEL +971 4 405 REIT (+971 4 405 7348)
WEBSITE www.reit.ae
Regulated by the DFSA
Subscribe / unsubscribe to Emirates REIT's mailing list.
This message, including any attachments may contain confidential and privileged material; it is intended only for
the person to whom it is addressed. Its contents do not constitute a commitment by Equitativa (Dubai) Limited
except where provided for in a written agreement. Equitativa (Dubai) Limited assumes no liability or responsibility
for the consequences arising out of a delay and/or loss in transit of this message, or for corruption or other
error(s) arising in its transmission and for any misuse or fraudulent use which may be made thereof. If you are not
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published research and the recipient must have regard to all disclosures and disclaimers contained therein.
Equitativa (Dubai) Limited is duly licensed and regulated by the Dubai Financial Services Authority (DFSA).
ti
EMIRATES REIT (CEIC) PLC DIFC, INDEX TOWER, LEVEL 23, DUBAI, UAE PO BOX: 482015 REIT.AE PAGE 2 OF 2
I I I
LICENSED BY DFSA | positive |
Julphar
juLphar.net
Discussion report and analysis of the board of directors of the listed
public shareholding company
Date 09 November 2022
Name of the Listed Company Gulf Pharmaceutical Industries PSC julphar
The period of the financial statements
For Q3-2022
covered by the report
1. Net sales for the period reached 415.8 mAED as
compared to 362.8 mAED representing an increase of
14.6%
2. EBITDA from continuing operations reached in Q3
2022 to 47.5 mAED as compared to 40.6 mAED in Q3
2021 (EBITDA for Q3 2021 after eliminating onetime
events of acquisition and others of 59.1 mAED)
Overview of the main results during the
3. The continued growth in performance and profitability
financial period
from Q3 2022 due to:
• Increase in market share in its core markets
including United Arab Emirates, Kingdom of
Saudi Arabia and other GCC countries. Also,
overcoming geopolitical challenges in Algeria,
Lebanon, Ethiopia and Sudan
• Implementation of various cost saving initiatives
Securities issued during the financial
AED nil
period
1. Continued and increased focus on the development of
the Company's products pipeline
2. Successful licensing arrangements for the co
Summary of the most important non-
development of products
financial events and developments
3. Continued successful implementation of two-year
during the financial period
strategic turnaround plan
4. Approval of new products launches which is in line
with the strategic roadmap
Page 1 of 4
Julphar jlnh T +971 7 246 1461
POBox 997 Ras AL Khaimah djorJI jjjofj 997 ajjj 5 gala F +971 7 246 2462 cL-jujIgzUl oLxl i n I I j.4.l i JI
United Arab Emirates ozeHjcJI cwjsJI oljlolJI E info@julphar.net Gulf Pharmaceutical IndustriesJulphar
juLphar.net
The operational performance of the Company has shown a
strong and continued positive trend while overcoming
geopolitical challenges which is evident by the increase in net
Summary of operational performance sales as compared to Q3 2021.
during the financial period Q3 2022 production output remained strong with sustained
output and targeting to cross the 20 mio units milestone in
Q4 evidencing the strong progress towards strategic
roadmap
Key figures Q3 2022 Q3 2021*
Net sales (mAED) 415.8 362.8
Gross margin (%) 30.0% 24.3%
Net profit (mAED) 4.5 53.8
EBITDA from continuing 47.5 99.7
operations (mAED)
EBITDA from continuing 47.5 40.6
operations - normalized
(mAED)
Summary of profit and loss during the Plant Pharmacies LLC ("Planet") financial results were fully
financial period consolidated in julphar Group from 1 July 2021. During Q3
2022, Planet contributed 241.8 mAED in the net sales. The
Group's gross margins were affected by Planet's lower gross
margin on distribution business. However, the gross margins
continued to be sustained and reached 30.0% in Q3 2022 as
compared to 24.3% in Q3 2021 (if normalized, the gross
margins were 21.9% in Q3 2021 after eliminating the one
time events).
*after reclassification of Julphar Ethiopia as 'discontinued
operations'.
The total equity of the Group increased by 10.0 mAED and
reaching to 973.8 mAED. The increase was due to net profit
for theyear of 10.4 mAED followed by the increase in
Summary of financial position as at the
cashflow hedge reserve by 25.6 mAED. These increases were
end of the financial period
effected by sharp decline in foreign currency translation
reserve by 27.2 mAED. No significant changes in the financial
position of the Group compared to theyear-end 2021.
Summary ofcash flows during the Cashflow used in operating activities reached -45.7 mAED
financial period during the period from January to September 2022 as
Page 2 of 4
Julphar jlob T +971 7 246 1461
POBox 997 Ras AL Khaimah cboudJI jnlj 997 zujj (pgnita F+971 7 246 2462 d_jLj|gzLJI oLrl 1 n.1 J i..l. i JI
United Arab Emirates ozojuoJI cujj-qJI oljLolJI E info@juLphar.net Gulf Pharmaceutical IndustriesJulphar
juLphar.net
compared to 7.2 mAED in 2021. The cashflow from investing
activities has also contributed 23.9 mAED which is also
supported by cashflow from financing activities of 10.4
mAED.
Net sales 415.8 mAED
Main performance indicators Net profit 4.5 mAED
EBITDA from continuing operations 47.5 mAED
The size of the pharmaceutical market in Middle East &
North Africa is valued at USD 44.8 bn in 2021 and is
expected to reach USD 56 bn in 2025. The pharma market is
expected to grow at a CAGR of 5.7%.
Generics are showing about 9.5% CAGR. in the private
Expectations for the sector and the segment of the key markets, while the total market is
company's role in these expectations growing by 7.4% CAGR in the private segment of key
markets (UAE, KSA, Egypt, Algeria, Tunisia, Jordan, Kuwait
and Lebanon). It is expected that the generics market will
maintain higher growth for reasons like public budgetary
pressures, the support for the local manufacturers and patent
expiry. {Source IQVIA Data)
UAE witnessed a 2.2% real GDP growth in 2021. Continued
government stimulus, a gradual easing of the pandemic
Expectations regarding the economy
impact, Expo 2020, etc., are helping the economy to revert to
and its impact on the company and the its pre-COVID-19 crisis level, with full recovery expected by
sector 2022. The economy is expected to grow by 4.2% in 2022.
Source: Oxford economics, Reuters, IMF, Bloomberg,
Moody's, ENBD, Central Bank UAE
The future plans for growth of the Company are as follows:
1. Focus on strategic areas of business as the company
has divested from non-core subsidiaries.
2. Continue retail pharmacies expansion in UAE and KSA
3. Strengthen sales organization in core markets and
increase market share with existing portfolio.
Future plans for growth and changes in
4. New alliances and partnerships to strengthen the
operations in future periods
product portfolio of the company.
5. Launch new products in core therapeutic areas and
new therapeutic areas.
6. Invest in capital expenditure to increase production
capacity and new manufacturing technologies and
improve operations efficiency.
Page 3 of 4
Julphar jLoh T +971 7 246 1461
POBox 997 Ras AL Khaimah dcudJI jjdIj 997 ojjj Qgaiio F +971 7 246 2462 cLuujIgiJI oLd i n 1 J 3 . 1 5 II
United Arab Emirates ozmcJI cwpJI oljLolJI E info@julphar.net Gulf Pharmaceutical IndustriesJulphar
julphar.net
The Group continues to invest in capital expenditure for
achieving targeted growth and sustained performance by:
The size and impact of current and
1. Expanding the product portfolio with investing in new
projected capital expenditures on the product dossiers
company 2. Continuing upgrading the existing production facilities
3. Redesigning current processes to address new
requirements from government authorities
The developments of the
The implementation of the following projects have been
implementation of projects, plans and
discussed in the Board of Directors' meetings:
transactions and deals that were 1. Growth strategy 2030
discussed by the company's board of 2. New products launch to add in the product portfolio
3. License agreement for co-development of products
directors in the report for the previous
4. Divestment of non-core areas of business
fiscal year
The name of the chairman of the
Sheikh Saqr Humaid AlQasimi
company or the authorized signatory
Signature and Date 09 November
Company's Seal
Page 4 of 4
Julphar jlnb T +971 7 246 1461
POBox 997 Ras AL Khaimah dnpJI jjoIj 997 zuy ^gaia F +971 7 246 2462 cLjLjIgaJI ol_d i n 1 J ^jlJLAJI
United Arab Emirates oznioJI cwpJI oljLolJI E info@juLphar.net Gulf Pharmaceutical Industries | positive |
00
ADNOC Classification: Public
b;
AADDNNOOCC
DDIISSTTRRIIBBUUTTIIOONN
First Quarter 2023
Results
Management Discussion & Analysis Report
;
1 2 May 2023
Key highlights: Growth in underlying profitability driven by
higher fuel volume and opex optimization
1 | P ageADNOC Classification: Public
Key highlights: Strong operating performance and growth in
underlying profitability in Q1 2023
Fuel volumes – Q1 2023
3,143 +27.8% Y-o-Y
Retail fuel volumes: +29.7%, mainly attributable to acquisition of TotalEnergies Marketing Egypt
million liters
Commercial fuel volumes: +23.8%, mainly attributable to acquisition of TotalEnergies Marketing Egypt
2,654 +7.9% Y-o-Y
Retail fuel volumes: +5.5% supported by network expansion and growth in region’s ongoing economic
million liters
activities
sold in UAE
and KSA Commercial fuel volumes: +12.9% on a strong growth in the corporate business, new contracts signed
in 2022 and Q1 2023 as well as higher spot trading
Revenue – Q1 2023
7,998 +18.7% Y-o-Y
driven by growth in total fuel volumes and selling prices (as a result of higher crude oil prices) and higher
AED million non-fuel retail segment contribution
Gross profit – Q1 2023
1,264 -12.8% Y-o-Y
AED million
in Q1 22, ADNOC Distribution benefited from inventory gains in a rising oil price environment (AED 149
million), while in Q1 23 it recorded inventory losses (AED 14 million) due to falling international oil prices
804 Retail fuel: -8.7% Y-o-Y
AED million
inventory gains of AED 128 million in Q1 2022 vs. absence of inventory gains in Q1 2023 partially offset by
growth in retail fuel volumes
172 Non-fuel retail: +8.7% Y-o-Y
AED million
supported by strong growth in non-fuel transactions, higher conversion rate, improved customer offerings
following revitalization of stores, marketing and promotion campaigns, and higher Food and Beverage
(F&B) sales
288 Commercial: -29.8% Y-o-Y
AED million
growth in corporate fuel volumes offset by a margin reduction in a situation of declining prices as well as
inventory gains of AED 21 million in Q1 2022 vs. AED 14 million inventory losses in Q1 2023
EBITDA – Q1 2023
776 -11.9% Y-o-Y and +18.6% Q-o-Q
AED million
in Q1 22, ADNOC Distribution benefited from inventory gains in a rising oil price environment, while in Q1
23 it recorded inventory losses due to falling international oil prices
Underlying EBITDA (EBITDA excluding inventory movements) – Q1 2023
789 +7.8% Y-o-Y and +13.2% Q-o-Q
driven by volume growth, higher contribution from non-fuel retail business and company-wide efficiency
AED million
initiatives
Net profit attributable to equity holders – Q1 2023
537 -19.9% Y-o-Y and +28.1% Q-o-Q
AED million
due to lower EBITDA
Net profit excluding inventory movements – Q1 2023
551 +5.5% Y-o-Y and +19.4% Q-o-Q
AED million
driven by higher fuel volumes and company-wide efficiency initiatives
2 | P ageADNOC Classification: Public
Strong cash flow generation and balance sheet – Q1 2023
1,048 Free cash flow
AED million
Supports new dividend policy to pay min. AED 2.57 billion dividends for 2023
ADNOC Distribution maintained a strong financial position at the end of March 2023 with liquidity of AED 4.7
billion, in the form of AED 1.9 billion in cash and cash equivalents and AED 2.8 billion in unutilized credit
facility
1.06x Net debt to EBITDA ratio
Balance sheet remained strong with a Net debt to EBITDA ratio of 1.06x as of 31 March 2023
(0.78x as of 31 December 2022)
Operational highlights – Q1 2023
7 New stations in UAE and KSA 814 Total stations network
507 in UAE
67 in KSA
240 in Egypt*
345 Total convenience stores
network in UAE
42.5 Fuel transactions in UAE 10.6 Non-fuel transactions in UAE
flat Y-o-Y +10.7% Y-o-Y
million million
24% Conversion rate of
convenience stores in UAE
22% in Q1 2022
* Acquisition of 50% of TotalEnergies Marketing Egypt completed in Feb. 2023
3 | P ageADNOC Classification: Public
Strategy update: Sustained growth momentum in Q1 2023
following record 2022 results
ADNOC Distribution recorded positive underlying financial performance in Q1 2023 with net profit excluding
inventory movements increasing by 5.5% year-on-year to AED 551 million, driven by a 7.9% growth in the UAE
and KSA fuel volumes, a 9% increase in non-fuel retail gross profit, and like-for-like OPEX reduction of AED 33
million demonstrating significant progress towards the OPEX savings target. Continued execution momentum
on Smart Growth Strategy signals the Company’s commitment to delivering on its growth initiatives and
generating long-term shareholder value.
Fuel business (retail and commercial)
ADNOC Distribution’s UAE and KSA fuel volumes demonstrated strong growth in Q1 2023 of 7.9% year-on-
year, as economic activity continued to demonstrate robust momentum supporting retail and corporate fuel
consumption. The fuel volumes expanded year-on-year despite the start of Ramadan during the reporting period
and no positive impact of EXPO-2020 that we saw in Q1 2022. ADNOC Distribution added new stations in Dubai
and Saudi Arabia, resulting in incremental retail fuel volumes in Q1 2023 which increased by 5.5% compared to
Q1 2022. Finally, following completion of the acquisition of a 50% stake in TotalEnergies Marketing Egypt and
the subsequent financial consolidation, we recorded a 27.8% year-on-year increase in total fuel volumes and
added 240 retail stations to our network.
Network expansion: ADNOC Distribution further expanded its retail fuel activities by adding new stations in the
UAE and KSA and is on track to open 25-35 new stations in 2023.
o Domestically: ADNOC Distribution added six new stations in the UAE in Q1 2023 (one marine station in
Abu Dhabi was closed during the period) to reach 507 stations in our home market, which compares to 464
stations at the end of Q1 2022.
In Dubai, the Company opened one new station in Q1 2023. As a result, ADNOC Distribution’s service
station network in the emirate expanded to 40 stations at the end of the period, up from 31 stations at the
end of Q1 2022.
o Internationally: ADNOC Distribution continued to execute on its plans in the Kingdom of Saudi Arabia, with
one station opened during Q1 2023, taking its total network in the country to 67 stations at the end of the
period, up from 55 stations at the end of Q1 2022. The Company has revitalized and rebranded 76% of its
KSA stations as of the end of Q1 2023.
Beyond the GCC region, in Q1 2023 ADNOC Distribution successfully completed the acquisition of a 50%
stake in TotalEnergies Marketing Egypt LLC, which is among the top four fuel retail operators in Egypt.
The partnership with TotalEnergies, a leading global multi-energy company with a strong brand and
successful track record in Egypt, includes a diversified portfolio comprising 240 fuel retail stations, 100+
convenience stores, 250+ lube changing stations, and car wash sites, as well as wholesale fuel, aviation
fuel and lubricant operations.
The acquisition of TotalEnergies Marketing Egypt supports ADNOC Distribution’s objective to become a
regional leader in mobility retail and fuel distribution and provides sizeable operations in one of the largest
countries in MENA.
4 | P ageADNOC Classification: Public
Commercial business:
In Q1 2023, commercial segment fuel volumes in the UAE increased by 12.9% compared to Q1 2022 driven by
a material increase of 21.0% in corporate business volumes. This was a result of higher spot trading activity and
execution of new corporate contracts signed in 2022 and Q1 2023, as our business development team has been
proactively focusing on gaining market share in Dubai and Northern Emirates. The total number of export network
countries of ADNOC Distribution’s VOYAGER lubricants portfolio rose to 28 markets at the end of Q1 2023
compared to 20 markets at the end of the same period last year.
Non-fuel business - UAE
During Q1 2023, non-fuel business continued to gain momentum with a c.11% year-on-year increase in recorded
transactions, supported by a series of marketing campaigns and customer-centric initiatives in line with the
Company’s non-fuel retail strategy.
At the end of Q1 2023, the network of convenience stores stayed nearly unchanged compared to the end of Q1
2022 at 345. Our focus remains on revitalization of the convenience stores. Since the launch of the program, the
Company modernized a total of 193 ADNOC Oasis stores over 2020-2022, offering fresh food, barista-brewed
coffee and a wider menu selection, and providing support to key convenience stores operating metrics, including
number of transactions, conversion rate, gross margin, and gross basket.
ADNOC Distribution continued to enhance customer offerings through various initiatives, such as offering a
modern shopping environment, improvement in category management, a better assortment of products,
including introduction of fresh food and premium coffee products, and digital channels to order and transact. The
customer journey improvements are consistent with the Company’s ongoing non-fuel retail strategy to offer
modern and digitally enabled shopping experience.
ADNOC Distribution continued to expand its vehicle inspection services in the UAE with the addition of one new
center in Abu Dhabi. The number of vehicles inspected (fresh tests) in the Company’s vehicle inspection centers
increased by 33.3% in Q1 2023 year-on-year, partially driven by an increase of the number of vehicle inspection
centers from 30 as of the end of Q1 2022 to 33 as of the end of Q1 2023.
ADNOC Rewards loyalty program and customer focus
ADNOC Rewards loyalty program continued to add members throughout Q1 2023, with more than 1.6 million
members now enrolled and over 50 partner offers providing discounts and deals through the ADNOC Distribution
app. The program received a boost in February 2023 with an improvement in generosity of 3x and further
enhancements planned for 2023.
Customer experience has been integral to the Company, with continuing offering of promotions in-store and
through the ADNOC Rewards. This includes the Let’s Go Shop and Win Raffle, as well as comprehensive vehicle
inspection, car wash, and lube change offers.
In February, the Company became the region’s first fuel distributor to introduce the innovative ADNOC ‘Fill &
Go’ technology at its service stations. The AI-backed solution utilizes the latest innovations in computer vision
technologies, comprising machine learning models allowing computers to recognize vehicles and responds by
offering a hyper-personalized fueling experience, reaffirming ADNOC Distribution’s leadership position in the
UAE’s fuel and convenience retail sector.
5 | P ageADNOC Classification: Public
OPEX
During Q1 2023, ADNOC Distribution accelerated efficiency improvement measures across all our operations
and businesses including optimizing logistics costs, renegotiations of supply contracts with vendors,
centralization of key functions, etc. As a result, the Company’s OPEX decreased by 8.7% year-on-year and by
12.3% quarter-on-quarter.
The cost reduction took place despite the continued expansion of our operations and associated costs. Number
of stations in the UAE and KSA increased by nearly 11% at the end of Q1 2023 compared to the same period
of last year. In addition, ADNOC Distribution consolidated operations of TotalEnergies Marketing Egypt from 1
February 2023. The Company continues to implement management initiatives to increase operational efficiency
and achieve prudent cost controls.
CAPEX
In line with the plans to continue with its expansion strategy, ADNOC Distribution invested (including
accruals/provisions) AED 157 million in Q1 2023, of which nearly 80% spent on growth. Our target remains to
spend AED 0.9-1.1 billion ($ 250-300 million) on CAPEX in 2023.
Sustainability & futureproofing of business
ADNOC Distribution’s commitment to futureproof the business supports our drive to deliver long-term
shareholder value. During Abu Dhabi Sustainability Week in January 2023, the Company announced a series
of tangible steps to address energy transition as well as to decarbonize its operations through several initiatives:
I/ E GO
2
ADNOC Distribution continues to expand its network of EV charging stations, and has agreed with TAQA, one
of the largest listed integrated utility companies in the EMEA region, to work together to establish a new mobility
joint-venture, E GO. Once established, E GO will build and operate EV charging infrastructure in public and
2 2
private sites across Abu Dhabi and the wider UAE.
The two companies will utilize their wealth of experience, vast network, and innovation capabilities to meet the
evolving needs of EV customers nationwide and unlock new business revenue streams. E GO is to play a critical
2
role in delivering EV charging infrastructure across Abu Dhabi where an estimated 70,000 EV charging points
and up to nearly $200 million CAPEX is required to meet growing demand by 2030.
In parallel, ADD continues EV chargers rollout at its service stations with 36 charging points currently installed
across the UAE with a power ranging between 50 and 180 KW. 23 of our service stations are equipped with EV
charging services.
Through the development of modern mobility solutions, ADNOC Distribution intends to become a destination of
choice for charging and convenience for the UAE customers.
II/ Decarbonization roadmap
ADNOC Distribution plans to expand its sustainability-driven efforts to futureproof its business. In January 2023,
the Company unveiled its Decarbonization roadmap, committing to a reduction of carbon intensity of its business
by 25% by 2030. The Decarbonization roadmap covers Scope 1 emissions, which come directly from the
Company’s operations, and Scope 2 carbon emissions, which come from the energy ADNOC Distribution uses
to run its operations.
6 | P ageADNOC Classification: Public
The Company aims to cut emissions through a set of identified initiatives that will be implemented in 2023 and
beyond, such as installing solar panels at service stations, use of biofuels to power its fleet of vehicles and other
energy optimization initiatives. ADNOC Distribution also aims to utilize ‘green concrete’, that is eco-friendly and
has a smaller carbon footprint than traditional concrete, in the construction of new service stations.
In May, ADNOC Distribution announced partnering with Emerge, a joint venture between Masdar and EDF, to
install solar panels across its service station network in Dubai, as part of the Company’s phased approach to
UAE-wide solar rollout to provide the power needed for daily operations.
III/ Sustainability Linked Loan
ADNOC Distribution became the first UAE fuel and convenience retailer to tap into sustainable financing, by
converting in January 2023 an existing AED 5.5 billion ($ 1.5 billion) term loan into a Sustainability Linked Loan.
The Company committed to a penalty/incentive which ties the loan to sustainability-linked indicators, including
GHG emissions intensity and share of renewable energy contribution. By arranging the Sustainability Linked
Loan, ADNOC Distribution has aligned its funding strategy with the sustainability roadmap.
Eng. Bader Al Lamki – Chief Executive Officer:
"We focused our efforts during Q1 2023 on streamlining operations across our local and international network
while ensuring our cross-border teams were well-equipped to sustain the delivery momentum of our growth
trajectory through 2023 and beyond. At the same time, we maintained a healthy cash flow generation and strong
financial position to deliver incremental shareholder value through efficient capital allocation.
We continue to explore further growth of our business domestically and internationally through value-accretive
M&A opportunities, while considering profitability and the creation of new revenue streams to be among the main
driving factors in our decision-making process.”
7 | P ageADNOC Classification: Public
Outlook: Positive volume growth expected to sustain in 2023
with management focus on Growth and Profitability
ADNOC Distribution remains committed to delivering sustainable, profitable growth and attractive shareholder
returns. The Company expects positive volume growth to sustain in 2023, while also focusing on network
expansion and delivering higher non-fuel retail contribution. By executing management initiatives to increase
operational efficiency across all business units, implementing prudent cost controls and optimizing costs, in Q1
2023 the Company achieved OPEX savings of AED 33 million and is on track to achieve its guidance for like-
for-like OPEX savings in excess of AED 92 million in 2023.
ADNOC Distribution will continue to enhance customer experience, further optimize its operations to become a
leading cost-efficient fuel retailer and generate sustainable value for shareholders. The Company is confident
and steadfast in the delivery of its strategic commitments. As opportunities arise, ADNOC Distribution will pursue
expansion plans in a disciplined manner, supported by a robust balance sheet and ample liquidity with
confidence in the cash flow generation capability.
In its ongoing quest to futureproof its business, ADNOC Distribution continues to explore potential growth
opportunities and new revenue streams created through energy transition, including opportunities in mobility and
energy transition such as electric vehicle charging services and other sustainability-driven initiatives.
Fuel business
New stations: after achieving the 2022 target of opening 60-80 stations by adding 68 new stations in the UAE
and KSA, the Company expects delivery momentum to continue and targets 25-35 new stations during 2023. In
Q1 2023, ADNOC Distribution opened 7 new stations and operated at the end of the reporting period 574 service
stations in the UAE and KSA.
Egypt: ADNOC Distribution’s recent acquisition of a 50% stake in TotalEnergies Marketing Egypt reaffirms the
Company’s commitment to expanding business in attractive international growth markets. Egypt’s fuel retail,
lubricants and aviation markets are highly attractive with a potential for future growth. Due to its young and
expanding population, alongside a series of progressive economic reforms, Egypt has recorded GDP growth
with a positive outlook.
Through this transaction, ADNOC Distribution and TotalEnergies are expected to explore future growth
opportunities of TotalEnergies Marketing Egypt by unlocking value potential in fuel distribution, lubricants and
aviation businesses supported by economic growth. The Company plans to open the first ADNOC flagship
service station in Cairo during Q2 2023.
Other international: Beyond our successful acquisition in Egypt, the Company is evaluating inorganic growth
opportunities in international markets with a focus on efficient capital allocation towards growth.
Renewal of the Refined Products Supply Agreement: at the beginning of 2023, ADNOC Distribution
successfully renewed its supply agreement with ADNOC for a new five-year term, reaffirming the Company’s
strong value proposition driven by predictable margins and highly cash generative core business. The renewal
also demonstrated strong and ongoing support from the majority shareholder, ADNOC.
8 | P ageADNOC Classification: Public
Non-fuel business
ADNOC Distribution invests in offering customers a modern and engaging retail experience. In line with the
ambitious non-fuel strategy, the focus remains on offering a modern environment and a better assortment of
products to customers, including fresh food and premium coffee, bundle offers and digital channels to order and
transact.
The convenience store revitalization program has ensured that the Company is well-positioned to capitalize on
benefits of its customer-centric initiatives and generates consistent growth in its convenience stores business.
Efficient capital allocation
ADNOC Distribution has demonstrated a proven track record of value creation since IPO, by pursuing new
opportunities in domestic and international markets and allocating cash towards growth. The Company expects
to invest AED 0.9-1.1 billion in 2023 to deliver on its growth plans after investing AED 1.25 billion in 2022, of
which nearly 65% was spent on growth. The guidance does not include any potential M&A opportunities. In Q1
2023, the CAPEX amounted to AED 157 million.
Through efficient capital allocation, ADNOC Distribution has consistently achieved healthy rates of return,
including Return on Capital Employed (ROCE) of 28.3% in Q1 2023 (26.6% in Q1 2022) and Return on Equity
(ROE) of 97.0% in Q1 2023 (87.5% in Q1 2022).
In Q1 2023, ADNOC Distribution generated robust free cash flow of AED 1,048 million. At the end of March
2023, the Company maintained a strong financial position with liquidity of AED 4.7 billion, in the form of AED 1.9
billion in cash and cash equivalents and AED 2.8 billion in unutilized credit facility. The balance sheet remained
strong with a net debt to EBITDA ratio of 1.06x as of 31 March 2023 (0.78x as of 31 December 2022). Together
with the consistent cash generation this provides support to potential future international expansion through
value-accretive M&A transactions.
Operating and investment efficiency
ADNOC Distribution aims to become one of the leading cost-efficient fuel retailers and remains on track to take
structural costs out, make its operations leaner and more efficient. The Company remains committed to
achieving further operational excellence and expects to realize like-for-like OPEX savings in excess of AED 92
million ($ 25 million) in 2023.
The key drivers for further OPEX savings include staff optimization, with the more efficient deployment of staffing
levels for stations and convenience stores, energy efficiency through smart technology, outsourcing of logistics,
centralization of key functions, etc.
Dividend policy
The Company’s continued growth and robust cash generation have enabled a progressive dividend policy for
the shareholders. ADNOC Distribution is committed to delivering sustainable, profitable growth and attractive
shareholder returns.
In March 2023, ADNOC Distribution shareholders approved a new attractive dividend policy with a minimum
dividend of AED 2.57 billion (20.57 fils per share) for 2023 (compared to a minimum 75% of distributable profits
as per the previous policy), offering higher payback visibility for shareholders for another year. For years
thereafter, the dividend is set equal to at least 75% of distributable profits. The dividend policy recognizes the
Company’s strong financial position, confidence in its growth prospects and cash-flow generation ability going
forward.
In accordance with the dividend policy, the Company expects to continue to pay half of the annual dividend in
October of the relevant year and the second half to be paid in April of the following year. The payment of dividend
is subject to the discretion of ADNOC Distribution’s Board of Directors and to the shareholders’ approval.
9 | P ageADNOC Classification: Public
Financial summary
AED million Q1-23 Q4-22 QoQ % Q1-22 YoY %
Revenue 7,998 8,187 -2.3% 6,736 18.7%
Gross profit 1,264 1,225 3.2% 1,449 -12.8%
Gross margin, % 15.8% 15.0% 21.5%
EBITDA 776 654 18.6% 881 -11.9%
EBITDA margin, % 9.7% 8.0% 13.1%
Underlying EBITDA (1) (2) 789 697 13.2% 732 7.8%
Operating profit 626 499 25.5% 718 -12.9%
Net profit attributable to equity holders 537 419 28.1% 671 -19.9%
Net margin, % 6.7% 5.1% 10.0%
Earnings per share (AED/share) 0.04 0.03 28.1% 0.05 -19.9%
Net profit excluding inventory movements 551 461 19.4% 522 5.5%
Net cash generated from operating activities 1,257 1,522 -17.4% 2,066 -39.2%
Capital expenditures 155 490 -68.4% 196 -20.6%
Free cash flow (3) 1,048 1,142 -8.2% 1,866 -43.9%
Total equity 2,793 3,445 -18.9% 2,620 6.6%
Net debt (4) 3,605 2,735 31.8% 1,446 149.3%
Capital employed 10,176 10,441 -2.5% 9,305 9.4%
Return on capital employed (ROCE), % 28.3% 28.5% 26.6%
Return on equity (ROE), % 97.0% 79.8% 87.5%
Net debt to EBITDA ratio (4) 1.06 0.78 0.46
Leverage ratio, % 56.3% 44.3% 35.6%
(1) Underlying EBITDA is defined as EBITDA excluding inventory movements
(2) Underlying EBITDA for Q4 2022 and Q1 2022 has been restated as per definition in (1)
(3) Free cash flow is defined as net cash generated from operating activities less payments for purchase of property, plant & equipment,
and advances to contractors
(4) Cash and bank balances used for net debt calculation include term deposits with banks
Notes: See the Glossary for the calculation of certain metrics referred to above
10 | P ageADNOC Classification: Public
Operating and financial review
Fuel volumes
Q1 2023 total fuel volumes sold reached 3,143 increased by 12.9% year-on-year driven by a
million liters, increasing by 27.8% year-on-year significant growth of 21.0% in corporate volumes,
mainly attributable to acquisition of TotalEnergies partially offset by a reduction of 51.3% year-on-year
Marketing Egypt. in aviation volumes due to lower uptake from
strategic aviation customers.
In GCC markets (UAE and KSA), Q1 2023 total fuel
volumes amounted to 2,654 million liters, up by Compared to Q4 2022, Q1 2023 GCC total fuel
7.9% year-on-year despite start of Ramadan during volumes were almost flat, including unchanged
the reporting period and no effect of EXPO-2020 quarter-on-quarter retail fuel volumes. However,
which had a positive impact on our volumes in Q1 daily Q1 2023 total fuel volumes increased by 1.8%
2022. quarter-on-quarter, including by 2.2% in retail
segment and by 1.1% in commercial segment, as
In Q1 2023, GCC retail fuel volumes increased by Q1 2023 had two days less than Q4 2022.
5.5% year-on-year, while commercial fuel volumes
Fuel volumes by segment (million liters) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Retail (B2C) 2,148 1,747 23.0% 1,656 29.7%
Of which GCC 1,746 1,747 0.0% 1,656 5.5%
Of which Egypt 402
Commercial (B2B) 995 918 8.4% 804 23.8%
Of which GCC 907 918 -1.1% 804 12.9%
Of which Egypt 88
Of which Corporate 926 868 6.6% 713 29.7%
Of which GCC 863 868 -0.5% 713 21.0%
Of which Egypt 62
Of which Aviation 70 50 39.7% 90 -22.9%
Of which GCC 44 50 -11.7% 90 -51.3%
Of which Egypt 26
Total 3,143 2,664 18.0% 2,459 27.8%
Fuel volumes by product (million liters) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Gasoline (1) 1,773 1,612 10.0% 1,525 16.3%
Diesel 1,081 832 29.8% 656 64.7%
Aviation products 70 50 39.7% 90 -22.9%
Others (2) 220 170 29.3% 188 17.0%
Total 3,143 2,664 18.0% 2,459 27.8%
Of which GCC 2,654 2,664 -0.4% 2,459 7.9%
Of which Egypt 490
(1) Includes grade 91, 95 and 98 unleaded gasoline
(2) Includes CNG, LPG, kerosene, lubricants, and base oil
11 | P ageADNOC Classification: Public
Results
In Q1 2023, revenue increased by 18.7% year-on- Reported EBITDA declined by 11.9% year-on-year
year to AED 7,998 million. The increase was driven to AED 776 million mainly due inventory gains in Q1
by higher selling prices as a result of higher crude 2022 and inventory losses in Q1 2023. This was
oil prices, growth in fuel volumes, and higher partially offset by the higher fuel volumes and a
contribution of non-fuel retail business. reduction in cash operating expenses.
Q1 2023 gross profit decreased by 12.8% year-on- Q1 2023 underlying EBITDA (EBITDA excluding
year to AED 1,264 million. In Q1 2022, inventory inventory movements) increased by 7.8% year-on-
gains amounted to AED 149 million (AED128 million year to AED 789 million driven by higher volumes
in fuel retail and AED 21 million in Corporate and management initiatives to reduce costs and
business), while in the reporting period, the improve efficiency of operations.
Company did not record any inventory gains in the
fuel retail business and incurred AED 14 million Q1 2023 net profit attributable to shareholders
inventory losses in the Commercial business. In Q1 decreased by 19.9% year-on-year to AED 537
2023, gross profit received support from higher fuel million due to lower EBITDA. Net profit attributable
volumes and growth in non-fuel retail business. to shareholders excluding inventory movements
increased by 5.5% year-on-year to AED 551 million.
Revenue by segment (AED million) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Retail (B2C) 5,260 5,297 -0.7% 4,600 14.3%
Of which fuel retail 4,937 4,985 -1.0% 4,316 14.4%
Of which non-fuel retail (1) 323 312 3.4% 284 13.5%
Commercial (B2B) 2,739 2,890 -5.2% 2,136 28.2%
Of which corporate 2,430 2,630 -7.6% 1,820 33.5%
Of which aviation 308 259 19.0% 316 -2.4%
Total 7,998 8,187 -2.3% 6,736 18.7%
Gross profit by segment (AED million) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Retail (B2C) 976 928 5.2% 1,039 -6.1%
Of which fuel retail 804 766 4.9% 881 -8.7%
Of which non-fuel retail (1) 172 162 6.7% 159 8.7%
Commercial (B2B) 288 298 -3.4% 410 -29.8%
Of which corporate 232 227 1.9% 292 -20.6%
Of which aviation 56 70 -20.4% 118 -52.6%
Total 1,264 1,225 3.2% 1,449 -12.8%
EBITDA by segment (AED million) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Retail (B2C) 545 399 36.6% 598 -9.0%
Commercial (B2B) 222 255 -12.8% 282 -21.3%
Of which corporate 168 191 -12.0% 232 -27.4%
Of which aviation 54 64 -15.3% 50 6.8%
Unallocated(2) 9 1 NM 1 NM
Total 776 654 18.6% 881 -11.9%
NM: Not meaningful
(1) Non-fuel retail includes convenience stores, car wash, lube change, property management and vehicle inspection
(2) Unallocated includes other operating income/expenses not allocated to specific segment
12 | P ageADNOC Classification: Public
Distribution and administrative expenses
In Q1 2023, distribution and administrative
expenses were AED 669 million, a reduction of Excluding depreciation, the OPEX of AED 519
8.7% compared to Q1 2022, despite an increase of million decreased in Q1 2023 by 9.0% year-on-year.
nearly 11% in the Company’s network in the UAE
and KSA and associated costs as well as acquisition
of TotalEnergies Marketing Egypt.
AED million Q1-23 Q4-22 QoQ % Q1-22 YoY %
Staff costs 361 380 -5.2% 393 -8.3%
Depreciation 150 156 -3.5% 163 -7.6%
Repairs, maintenance, and consumables 44 62 -29.2% 46 -5.0%
Distribution and marketing expenses 4 9 -51.9% 29 -85.0%
Utilities 34 57 -40.5% 40 -16.4%
Insurance 5 5 1.7% 4 22.8%
Others (1) 71 94 -24.5% 57 24.8%
Total 669 763 -12.3% 733 -8.7%
(1) Other costs include lease cost, bank charges, subscriptions, legal fees, consultancies, etc.
Capital expenditures
The Company’s capital expenditures (CAPEX) In Q1 2023, total CAPEX decreased by 19.7% to
primarily consist of (i) investments related to the AED 157 million mainly due to normalization of the
development and construction of new service investment activity following the post-COVID
stations and fuel terminal projects and capitalized acceleration seen during 2022. Nearly 80% of the
maintenance costs related to properties, (ii) the CAPEX comprised development and construction of
purchase of machinery and equipment, and (iii) new service stations.
other capital expenditures related to properties,
including structural upgrades, technology The table below presents the breakdown of capital
infrastructure upgrades and other improvements. expenditures for the reviewed period.
AED million Q1-23 Q4-22 QoQ % Q1-22 YoY %
Service stations projects 122 277 -56.0% 128 -4.4%
Industrial and other projects 8 57 -86.1% 37 -78.4%
Machinery and equipment 13 76 -82.4% 10 28.8%
Distribution fleet 0 4 NM 3 NM
Technology infrastructure 12 60 -80.8% 16 -26.9%
Office furniture and equipment 2 17 -86.2% 2 8.6%
Total 157 490 -68.0% 196 -19.7%
NM: Not meaningful
13 | P ageADNOC Classification: Public
Business segments operating review
Retail segment – B2C (fuel and non-fuel)
Volumes
In Q1 2023, retail fuel volumes increased by 29.7% remained flat compared to Q4 2022 but on a daily
year-on-year, mainly attributable to acquisition of basis increased by 2.2% quarter-on-quarter.
TotalEnergies Marketing Egypt.
The Company continued to expand in Saudi Arabia
In GCC markets (UAE and KSA), the volumes and Dubai by adding new stations, resulting in
increased by 5.5% year-on-year driven by the incremental fuel volumes in Q1 2023 compared to
region’s ongoing economic growth. The volumes the same period of 2022.
Retail segment volumes (million liters) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Gasoline 1,701 1,536 10.8% 1,461 16.4%
Diesel 389 155 150.6% 144 170.0%
Other (1) 58 55 5.2% 51 15.3%
Total 2,148 1,747 23.0% 1,656 29.7%
Of which GCC 1,746 1,747 0.0% 1,656 5.5%
Of which Egypt 402
(1) Includes CNG, LPG, kerosene, and lubricants
Results
In Q1 2023, retail segment revenue increased by 2022 and absence of inventory gains in Q1 2023,
14.3% compared to Q1 2022, driven by higher partially offset by the higher fuel volumes in the
volumes and prices in the fuel retail segment, as reporting period. Non-fuel retail gross profit
well as growth in non-fuel retail revenue. increased by 8.7% in Q1 2023 compared to Q1
2022.
Q1 2023 retail segment gross profit decreased by
6.1% compared to Q1 2022, due to inventory gains Q1 2023 retail segment EBITDA declined by 9.0%
of AED 128 million in Q1 2022 and absence of compared to Q1 2022, mainly due to inventory gains
inventory gains in the reporting period. Gross profit in Q1 2022 and absence of inventory gains in Q1
was supported by higher fuel volumes and higher 2023, partially offset by the higher fuel volumes and
non-fuel business contribution. lower operating expenses in the reporting period.
Retail segment underlying EBITDA (EBITDA
Fuel retail segment gross profit decreased by 8.7% excluding inventory movements) increased by
year-on-year principally due to inventory gains in Q1 15.8% year-on-year.
Retail segment (AED million) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Revenue 5,260 5,297 -0.7% 4,600 14.3%
Of which fuel retail 4,937 4,985 -1.0% 4,316 14.4%
Of which non-fuel retail (1) 323 312 3.4% 284 13.5%
Gross profit 976 928 5.2% 1,039 -6.1%
Of which fuel retail 804 766 4.9% 881 -8.7%
Of which non-fuel retail (1) 172 162 6.7% 159 8.7%
EBITDA 545 399 36.6% 598 -9.0%
Operating profit 408 255 59.9% 450 -9.3%
Capital expenditures 99 347 -71.6% 129 -23.8%
(1) Non-fuel retail includes convenience stores, car wash, lube change, property management and vehicle inspection
14 | P ageADNOC Classification: Public
Other operating metrics
Q1 2023 fuel transactions in the UAE were nearly Q1 2022. The number of fuel transactions was
unchanged year-on-year despite the start of supported by the network expansion, improving
Ramadan and no effect of EXPO-2020 which had a customer sentiment, as well as the ongoing growth
positive impact on the number of fuel transactions in in economic activity in the UAE.
Fuel operating metrics Q1-23 Q4-22 QoQ % Q1-22 YoY %
Number of service stations – UAE(1)(2) 507 502 1.0% 464 9.3%
Number of service stations – Saudi Arabia(1) 67 66 1.5% 55 21.8%
Number of service stations – Egypt(1) 240
Total number of service stations(1) 814 568 43.3% 519 56.8%
Throughput per station – GCC (million liters) 3.0 3.1 -1.1% 3.2 -4.6%
Number of fuel transactions – UAE (million) 42.5 44.3 -4.0% 42.7 -0.4%
(1) At end of period
(2) One marine station was closed Q1 2023
In Q1 2023, non-fuel transactions in the UAE Average gross basket size increased by 2.5% year-
increased by 10.7% year-on-year driven by on-year in Q1 2023 compared to Q1 2022.
improving consumer sentiment, enhanced customer
offerings following the revitalization of the stores, and In its property management business, the Company
marketing and promotion campaigns under ADNOC continues to transition its tenancy business to a
Rewards loyalty program to attract higher footfall and revenue-sharing model to maximize revenues and
increase customer spending. profitability. In Q1 2023, the number of occupied
properties increased by 2.4% year-on-year driven by
The UAE convenience stores revenue increased by proactive non-fuel growth strategy to bring in new
11.6% to AED 201 million in Q1 2023 compared to tenants.
Q1 2022, mainly driven by higher number of
transactions compared to the same period of last A number of vehicles inspected (fresh tests) in the
year. In Q1 2023, convenience stores gross profit Company’s vehicle inspection centers increased by
increased by 11.7% to AED 66 million, driven by 33.3% in Q1 2023 compared to Q1 2022, driven by
higher number of transactions as a result of a higher number of vehicle inspection centers.
enhanced customer offerings following revitalization
of the stores, marketing, and promotion campaigns
as well as the higher F&B sales.
15 | P ageADNOC Classification: Public
Non-fuel operating metrics – UAE Q1-23 Q4-22 QoQ % Q1-22 YoY %
Total number of non-fuel transactions (million)(1) 10.6 10.8 -2.2% 9.6 10.7%
Number of convenience stores – UAE(2) 345 362 -4.7% 350 -1.4%
Convenience stores revenue (AED million) 201 207 -2.7% 180 11.6%
Convenience stores gross profit (AED million) 66 64 3.2% 59 11.7%
Gross margin, % 32.9% 31.0% 32.9%
Conversion rate (C-store sites only), %(3) 24% 24% 22%
Average basket size (AED)(4) 22.5 22.5 -0.2% 22.4 0.2%
Average gross basket size (AED)(5) 26.9 26.3 2.5% 26.3 2.5%
Number of Property Management tenants(2) 305 315 -3.2% 330 -7.6%
Number of occupied properties for rent(2) 997 1,022 -2.4% 974 2.4%
Number of vehicle inspection centers(2)(6) 33 32 3.1% 30 10.0%
Number of vehicles inspected – fresh tests (thousands) 297 223 33.3% 223 33.3%
Other vehicle inspection transactions (thousands)(7) 54 88 -38.6% 85 -36.2%
(1) Includes convenience stores, car wash and oil change transactions
(2) At end of period
(3) Number of convenience stores transactions divided by number of fuel transactions at sites with convenience stores
(4) Average basket size is calculated as convenience store revenue divided by number of convenience store transactions
(5) Average gross basket size is calculated as convenience store revenue (including revenue from consignment items shown under other
operating income) divided by number of convenience store transactions
(6) Includes one permitting center
(7) Other vehicle inspection transactions include number of vehicles inspected (re-tests) and sale of safety items at vehicles inspection
centers
16 | P ageADNOC Classification: Public
Commercial segment – B2B (corporate and aviation)
Volumes
In Q1 2023, commercial fuel volumes increased by corporate volumes as a result of higher spot trading
23.8% year-on-year, mainly attributable to activity and execution of new corporate contracts
acquisition of TotalEnergies Marketing Egypt. signed in 2022 and Q1 2023. The increase in
Corporate volumes was partially offset by a 51.3%
In GCC markets (UAE and KSA), the volumes year-on-year decline in the aviation fuel volumes
increased by 12.9% compared to Q1 2022, driven sold to strategic customers.
by a significant increase of 21.0% year-on-year in
Commercial segment volumes (million liters) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Gasoline 72 76 -5.1% 64 13.0%
Diesel 691 677 2.1% 512 35.1%
Aviation 70 50 39.7% 90 -22.9%
Other (1) 162 115 41.0% 138 17.6%
Total 995 918 8.4% 804 23.8%
Of which GCC 907 918 -1.1% 804 12.9%
Of which Egypt 88
(1) Includes LPG, lubricants, and base oil
Results
Q1 2023 commercial segment revenue increased strategic customers and a reduction in margins. In
by 28.2% compared to Q1 2022, mainly attributable addition, in its corporate business ADNOC
to acquisition of TotalEnergies Marketing Egypt. Distribution recorded AED 21 million inventory gains
The growth was driven by corporate business which in Q1 2022 and incurred AED 14 million inventory
increased the revenue by 33.5% in Q1 2023 losses in Q1 2023.
compared to Q1 2022, on the back of higher selling
prices as a result of increase in crude oil prices and Q1 2023 commercial segment EBITDA declined by
the material growth in corporate volumes. 21.3% year-on-year, due to the gross profit
reduction. Commercial segment underlying EBITDA
Q1 2023 commercial segment gross profit declined (EBITDA excluding inventory movements)
by 29.8% year-on-year as a result of a significant decreased by 9.5% year-on-year.
decline in the aviation business fuel volumes sold to
Commercial segment (AED million) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Revenue 2,739 2,890 -5.2% 2,136 28.2%
Of which corporate 2,430 2,630 -7.6% 1,820 33.5%
Of which aviation 308 259 19.0% 316 -2.4%
Gross profit 288 298 -3.4% 410 -29.8%
Of which corporate 232 227 1.9% 292 -20.6%
Of which aviation 56 70 -20.4% 118 -52.6%
EBITDA 222 255 -12.8% 282 -21.3%
Of which corporate 168 191 -12.0% 232 -27.4%
Of which aviation 54 64 -15.3% 50 6.8%
Operating profit 208 243 -14.3% 267 -22.2%
Capital expenditures 10 16 -37.6% 3 239.6%
17 | P ageAADDNNOOCC CCllaassssiiffiiccaattiioonn:: PPuubblliicc
Share trading and ownership
ADNOC Distribution shares are traded on the Abu An average of 10.4 million shares traded daily in Q1
Dhabi Securities Exchange (ADX) under the symbol 2023 (0.8x 2022 level). In Q1 2023, the average
ADNOCDIST. The closing share price as of 31 daily traded value of the Company’s shares was
March 2023 was AED 4.18. In the period from 1 approximately AED 45.5 million (0.9x 2022 level).
January 2023 through 31 March 2023, the share
As of 31 March 2023, ADNOC owned 77%, while
price ranged between AED 4.12 and AED 4.64 at
23% of ADNOC Distribution outstanding shares
close. ADNOC Distribution market capitalization
were publicly owned by institutional and retail
was AED 52.3 billion as of 31 March 2023.
investors.
Potential risks
Key risks potentially affecting ADNOC Distribution’s exposure to these risks. For more detailed
financial and operational results include supply information on risks and risk management, please
chain risks, asset integrity and information refer to the Risk Factors section of the international
technology risks. The Company has identified and offering memorandum dated 26 November 2017
implemented several key controls and mitigation relating to ADNOC Distribution IPO, which is
strategies to ensure business continuity, including available on the Company’s website at
engineered controls and managed controls as well www.adnocdistribution.ae
as contractual safeguards to limit its financial
18 | P ageADNOC Classification: Public
Q1 2023 Earnings conference call details
A conference call in English for investors and analysts will be held on Monday, May 15, 2023, at 4 p.m. UAE /
12 p.m. London / 8 a.m. New York. To access the management presentation, followed by a Q&A session, please
connect through one of the following methods:
Webcast
Click here to join the webcast
Please note that participants joining by webcast will be able to ask questions via a chat box within the webcast
player
Note: Click on the link above to attend the presentation from your laptop, tablet, or mobile device. Audio will
stream through your selected device. If you have technical difficulties, please click the “Listen by Phone” button
on the webcast player and dial one of the numbers provided therein.
Audio Call Dial in Details:
UAE (Toll Free): 8000 3570 2606
KSA (Toll Free): 800 844 5726
UK (Toll Free): 0800 279 0424
US (Toll Free): 800-289-0462
Passcode: 100965
For other countries, please connect to the above webcast link, select the “Listen by Phone” option on the webcast
player and click on the audio numbers to access the dial in information
The presentation materials will be available for download in English on Monday, May 12, 2023 at
https://www.adnocdistribution.ae/en/investor-relations/investor-relations/downloads/
Reporting date for the Q2 2023
We expect to announce our second quarter 2023 results on or around August 10, 2023.
Contacts
Investor Relations
Tel.: +971 2 695 9770
Email: ir@adnocdistribution.ae
Athmane Benzerroug
Chief Strategy, Sustainability and Transformation Officer
Email: athmane.benzerroug@adnocdistribution.ae
May 12, 2023
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
19 | P ageADNOC Classification: Public
Glossary
▪ Net debt is calculated as total interest bearing debt less cash and bank balances (including term deposits
with banks).
▪ Free cash flow is calculated as net cash generated from operating activities less payments for purchase
of property, plant & equipment, and advances to contractors.
▪ Capital employed is calculated as the sum of total assets minus non-interest bearing current liabilities.
▪ Return on capital employed is calculated as operating profit for the twelve months ended divided by
capital employed on the last day of the period presented.
▪ Return on equity is calculated as profit distributable to equity holders of the Company for the period of
twelve months ended divided by equity attributable to owners of the Company on the last day of the
period presented.
▪ Net debt to EBITDA ratio is calculated interest bearing net debt as of the end of the period presented,
divided by EBITDA for the twelve months ended on the last day of the period presented.
▪ Leverage ratio is calculated as (a) interest bearing net debt, divided by (b) the sum of interest bearing
net debt plus total equity.
▪ Average basket size is calculated as convenience store revenue divided by number of convenience
store transactions
▪ Average gross basket size is calculated as total convenience store sales revenue (including revenue
from consignment items shown under other operating income) divided by number of convenience store
transactions.
20 | P ageADNOC Classification: Public
Cautionary statement regarding forward-looking statements
This communication includes forward-looking statements which relate to, among other things, our plans,
objectives, goals, strategies, future operational performance, and anticipated developments in markets in which
operate and in which we may operate in the future. These forward-looking statements involve known and
unknown risks and uncertainties, many of which are beyond our control and all of which are based on
management’s current beliefs and expectations about future events. Forward-looking statements are sometimes
identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “will”, “could”, “should”,
“would”, “intends”, “estimates”, “plans”, “targets”, or “anticipates” or the negative thereof, or other comparable
terminology. These forward-looking statements and other statements contained in this communication regarding
matters that are not historical facts involve predictions and are based on the beliefs of our management, as well
as the assumptions made by, and information currently available to, our management. Although we believe that
the expectations reflected in such forward looking statements are reasonable at this time, we cannot assure you
that such expectations will prove to be correct. Given these uncertainties, you are cautioned not to place undue
reliance on such forward looking statements. Important factors that could cause actual results to differ materially
from our expectations include, but are not limited to: our reliance on ADNOC to supply us with substantially all
of the fuel products that we sell; an interruption in the supply of fuels to us by ADNOC; changes in the prices
that we pay ADNOC for our fuels and to the prices that we are allowed to charge our retail customers in the
UAE; failure to successfully implement our operating initiatives and growth plans, including our mixed-mode
service offering, our convenience store optimization initiatives, our cost savings initiatives, and our growth plans;
competition in our markets; decrease in demand for the fuels we sell, including due to general economic
conditions, improvements in fuel efficiency and increased consumer preference for alternative fuels; the dangers
inherent in the storage and transportation of the products we sell; our reliance on information technology to
manage our business; laws and regulations pertaining to environmental protection, operational safety, and
product quality; the extent of our related party transactions with ADNOC and our reliance on ADNOC to operate
our business; the introduction of VAT and other new taxes in the UAE; failure to successfully implement new
policies, practices, systems and controls that we implemented in connection with or following our IPO; any
inadequacy of our insurance to cover losses that we may suffer; general economic, financial and political
conditions in Abu Dhabi and elsewhere in the UAE; instability and unrest in regions in which we operate; the
introduction of new laws and regulations in Abu Dhabi and the UAE; and other risks and uncertainties detailed
in our International Offering Memorandum dated 26 November 2017 relating to our initial public offering and the
listing of our shares on the Abu Dhabi Securities Exchange, and from time to time in our other investor
communications. Except as expressly required by law, we disclaim any intent or obligation to update or revise
these forward-looking statements.
21 | P age | positive |
Aramex reports AED 2.97 billion in H1 2022 revenue
• Increased activity in Industrials, Retail, Pharmaceuticals, and SMEs are contributing
positively to the Freight-Forwarding and Logistics business
• Normalization in e-Commerce activity combined with the current macroeconomic
pressures are leading to volume declines in the Courier business in line with the industry
• Sustained gross profit margins at a Group level driven by strong growth in Freight-
Forwarding and Logistics business and operational efficiencies in Courier business
• Robust balance sheet, conservative leverage, and strong cash position underpin expansion
and upcoming M&A activity, including the recently announced MyUS acquisition
• Continuous investment in digital and tech infrastructure to unlock operational efficiencies
Dubai, UAE – Thursday, 11th August 2022: Aramex (DFM: ARMX) a leading global provider
of comprehensive logistics and transportation solutions, today announced its financial results
for the second quarter (“Q2”) and first half (“H1”) ending 30 June 2022.
Yo Y Yo Y
In Thousands of AED Q2 2022 Q2 2021 H1 2022 H1 2021
Cha nge Change
Revenue 1,516,589 1,570,923 (3%) 2,965,521 2,995,856 (1%)
Gross Profit 378,623 388,665 (3%) 722,723 747,310 (3%)
Gross Profit Margin 25.0% 24.7% - 24.4% 24.9% -
Operating Profit 63,569 99,552 (36%) 138,575 179,005 (23%)
Normalized Operating Profit - - - 143,577 179,005 (20%)
Operating Profit Margin 4.2% 6.3% - 4.7% 6.0% -
Normalized Operating Profit
- - - 4.8% 6.0% -
Margin
EBITDA 155,534 192,711 (19%) 324,202 362,556 (11%)
Normalized EBITDA - - - 329,204 362,556 (9%)
EBITDA Margin 10.3% 12.3% - 10.9% 12.1% -
Normalized EBITDA Margin - - - 11.1% 12.1% -
Net Profit 44,568 65,466 (32%) 91,871 111,479 (18%)
Normalized Net Profit - - - 96,873 111,479 (13%)
Net Profit Margin 2.9% 4.2% - 3.1% 3.7% -
Normalized Net Profit Margin - - - 3.3% 3.7% -
Group Financial Performance Highlights
• H1 2022 Revenue was AED 2.97 billion, a 1% decline from the same period a year ago. The
lower performance of the Courier business was offset by solid progress in Logistics and
Freight Forwarding business. Q2 2022 Revenue declined 3% YoY to AED 1.52 billion due to
lower Courier volumes.
• On a group level, GP margins remained stable over both the Q2 and six-month periods,
driven by accelerated growth in the Logistics and Freight-Forwarding business and
efficiencies in the Courier business.• In H1 2022 Net Profit declined by 18% YoY to AED 91.9 million mainly attributed to softer
revenues, and also partially impacted by the exchange rate impact, namely the Lebanese
Pound and Egyptian Pound. Net Profit in Q2 declined 32% to AED 44.6 million. Excluding
the impact of write-offs from discontinued technologies and other one offs, Normalized
Net Profit for H1 2022 decreased 13% YoY to AED 96.9 million.
• Year to date, the Company has sustained a very healthy liquidity profile with positive free
cash flows, a cash balance of AED 592 million and a debt to EBITDA ratio of 0.5x excluding
IFRS 16. Aramex’s strong balance sheet will support the Company’s growth strategy
including investments in digital and technological infrastructure as well as its active M&A
pipeline.
• During the reporting period, in May 2022, the Company distributed FY 2021 dividends of
AED 0.13 per share, or AED 190.3 million, to its shareholders.
Othman Aljeda, Chief Executive Officer of Aramex, said: “One of the greatest
changes we have seen in our business in the first half of 2022 is the change in our revenue
mix. Our Freight-Forwarding and Logistics business was the star performer, helping offset
the softness we have seen in the Courier business.
The double-digit top-line growth of Freight-Forwarding, and the growth in Logistics is
owed to our strategic investment in expanding our operations and market share, and
boosting our capabilities in that business. The organic growth year to date is
predominately driven by high growth sectors such as industrials, SMEs, Retail and
Pharmaceuticals.
Our courier business is facing industry headwinds. Despite this, we have been able to
protect and maintain our gross profit margin.
The softness in e-commerce activity is a global, industry-wide trend as consumers
returned to brick-and-mortar shopping as COVID restrictions eased. We are also seeing
rising inflation rates globally, which puts downward pressure on discretionary spending.
Going forward, our focus is on quality earnings and better efficiencies, by optimizing
resources, and strengthening our end-to-end product and service offering across
Courier, Freight, Logistics, Warehousing, and Supply Chain.
During the period, we announced the acquisition of MyUS, a global cross-border e-
commerce enabler, which is set to bolster Aramex’s cross-border business and expand our
geographic reach and footprint in the US, a key growth market. The transaction is expected
to be fully completed during the third quarter of this year.”Notable Developments
• DPDgroup, Aramex’s largest single shareholder, increased its equity stake in the
Company to 28% during the reporting period, demonstrating its confidence in Aramex’s
ability to create value over the long term. The strategic collaboration continues to
progress nicely with new trade lanes opened in the first half of the year to increase
connectivity between GCC and Europe.
• Operational efficiency continues through the automatization of warehouses and roll out
of AI solutions across the entire logistics life cycle. The Company also scaled its presence
for a more efficient last mile operation by expanding its pick up drop off locations and
FLEET, Aramex’s crowd-based delivery platform.
• Aramex’s investments in new technologies are progressing well including the optimization
of internal systems and enhancements in operational infrastructure, particularly in high-
volume markets such as Egypt and Qatar.
Business Performance Highlights
Courier Business: Aramex’s Courier business includes International Express and Domestic
Express and offers delivery and last mile solutions serving the B2B and B2C customer base
including Shop & Ship, e-commerce, FMCG, SMEs and others.
Courier Business Financial Highlights
%Y oY %Y oY
In Thousands of AED Q2 2022 Q2 2021 H1 2022 H1 2021
Change Change
Courier Business Revenue 936,163 1,100,781 (15%) 1,847,255 2,102,924 (12%)
International Express Revenue 587,091 733,556 (20%) 1,144,836 1,380,080 (17%)
Domestic Express Revenue 349,072 367,226 (5%) 702,419 722,844 (3%)
Courier Business Operating
40,109 104,627 (62%) 92,555 172,420 (46%)
Profit
Courier Business Shipment Volumes
%Y oY %Y oY
Q2 2022 Q2 2021 H1 2022 H1 2021
Change Change
International Express 5,930,134 7,200,104 (18%) 11,269,903 13,403,931 (16%)
Domestic Express 24,101,160 25,800,486 (7%) 49,109,504 51,189,324 (4%)
Total 30,031,294 33,000,590 (9%) 60,379,407 64,593,255 (7%)
• In H1 2022 Revenue for the Courier Business decreased by 12% YoY to AED 1.85 billion,
and in Q2 Revenue declined 15% to AED 936 million. The lower revenue in both periods is
owed predominately to lower volumes from the cross-border International Express
business, which saw a 16% YoY and 18% YoY decline in volumes in the H1 and Q2 periods,
respectively.
• Domestic Express business remained relatively resilient, with H1 2022 Revenue dipping 3%
YoY to AED 702 million, reflecting the 4% YoY decline in volumes for that period.
• Despite softening volumes, Courier business gross profit margin held firm at 28% in H1
2022 and 29% in Q2 2022.Alaa Saoudi, Chief Operating Officer – Express, said: “The COVID years of 2020 and
2021 drove hyper-activity in the express and last mile sector, however this phenomenon is
starting to fade. This year, we started to see a normalization in e-Commerce activities as
well as macroeconomic headwinds. This has undoubtedly impacted our performance
during this period on a top line level, however, we remain focused on driving greater
efficiencies to maintain stable gross profit margins.
In this context, we concentrate efforts on driving quality earnings and lowering our cost to
serve. We are progressing with the launch of our premium product, and are introducing
innovative solutions including paperless returns and e-commerce fulfilment solutions. We
continue to take a prudent approach to cost management.
Furthermore, we worked on enhancing the last mile journey by expanding our fleet of pick-
up and drop-off locations (PUDO) in the GCC by 22% compared to Q1 2022, as well as
adopting a fleet management platform to help optimize our fleet performance.
Meanwhile, our strategic alliance with DPDgroup enabled us to execute on our
commitment to facilitating global trade as we opened three new trade lanes in Italy,
Germany, France and Netherlands.”
Logistics & Freight Forwarding: Aramex’s Logistics & Freight Forwarding business
includes air freight, sea freight, land freight, and warehousing and distribution solutions. It
serves a B2B customer base across multiple verticals including industrials, healthcare &
pharmaceutical, aerospace, retail & fashion, amongst others.
Logistics & Freight Forwarding Business Financial Highlights
%YoY %YoY
In Thousands of AED Q2 2022 Q2 2021 H1 2022 H1 2021
Change Change
Logistics & Freight
544,166 437,404 24% 1,047,404 830,270 26%
Forwarding Revenue
Freight Forwarding
432,410 328,595 32% 823,542 616,875 34%
Revenue
Integrated Logistics &
Supply Chain Solutions 111,756 108,809 3% 223,862 213,395 5%
Revenue
Logistics & Freight-
Forwarding Operating 22,371 (4,917) 555% 42,942 4,610 832%
ProfitFreight-Forwarding Shipment Volumes
%Y oY %Y oY
Q2 2022 Q2 2021 H1 2022 H1 2021
Change Change
Land Freight (FTL) 6,768 5,981 13% 14,038 11,932 18%
Land Freight (LTL KGs) 7,755,561 7,394,215 5% 15,773,676 13,791,148 14%
Sea Freight (FCL TEU) 7,179 9,183 (22%) 15,398 17,849 (14%)
Sea Freight (LCL CBM) 4,066 28,129 (86%) 9,396 41,281 (77%)
Air Freight (KGs) 16,897,577 11,538,110 46% 30,310,592 23,066,952 31%
• In H1 2022, Revenue for the Logistics & Freight-Forwarding business increased 26% YoY
to AED 1.05 billion and Q2 2022 registered a 24% YoY increase to AED 544 million on the
back of strong performance of the Freight-Forwarding business, as well as the steady
pace of growth of the Logistics business.
• Freight-Forwarding Revenue surged 34% YoY in H1 2022 to AED 824 million and by 32%
YoY in Q2 2022 to AED 432 million. The remarkable growth is predominantly driven by
solid demand from the industrial and SME sectors, as well as higher contributions from
high-growth sectors including retail and pharmaceuticals. In Q2 2022, Gross profit and
EBIT are growing at a much faster rate than revenue, indicating the success of the
initiatives to improve capabilities and operational efficiencies.
• Integrated Logistics & Supply Chain Solutions revenues rose 5% YoY in H1 2022 to AED
224 million and 3% YoY in Q2 2022 to AED 112 million attributed to strong retail activity,
increased volumes from industrial clients, and new business wins in GCC, Egypt and
Ireland. The segment also witnessed significant growth in margins driven by robust client
management and strong operational and cost efficiencies. The gross profit margin in Q2
2022 was 25% up from the 6% in the same period last year. Meanwhile, the gross profit
margin in H1 2022 was 19%, up from 12% in the previous year.
Mohammad Alkhas, Chief Operating Officer – Logistics & Freight-Forwarding, said:
“The Logistics & Freight-Forwarding business sustained a remarkable growth momentum
as we focused on capitalizing on verticals where Aramex has a dominant position while
adopting a solutions-oriented customer approach to attract new customers.
During the period, we continued our efforts to enable global trade and enhance
connectivity, as well as consolidated trade lanes between Europe and the Middle East. We
also progressed our digital strategy to drive efficiencies across the business including
automation, optimization of storage methods, and wider improvements in our IT and data
systems.”
- Ends –About Aramex:
Since its foundation in 1982, Aramex has grown to become a global leader in the logistics and transportation industry,
recognized for its customized and innovative services for businesses and consumers. Listed on the Dubai Financial
Market (DFM) and headquartered in the UAE, Aramex’s location bridges the path between East and West, enabling its
reach to more customers with the provision of effective logistics solutions worldwide. Aramex currently has business
operations in 600+ cities across more than 60 countries worldwide and employs over 16,000 professionals. Aramex
offers innovative services and solutions, including international and domestic express delivery, freight-forwarding,
integrated logistics and supply chain management and e-Commerce solutions. Aramex is strategically leveraging
technology for better and more efficient last-mile delivery solutions. This approach has significant benefits, and that’s
why Aramex considers itself to be a technology-driven enterprise, selling transportation and logistics solutions without
owning heavy assets.
For more information, please visit us: www.aramex.com
Follow us on:
For more information, please contact:
Aramex
Mohammad Al Qassem Anca Cighi
Senior Manager – Corporate Communications Investor Relations Director
mohammadalah@aramex.com Investorrelations@aramex.com
Brunswick Group
Celine Aswad
Director
ARAMEX@brunswickgroup.com | positive |
Foodco National Foodstuff Co PJSC
Disclosure of the appointment of the General Manager
of a Subsidiary.
Date 10/08/2023
Abu Dhabi National Foodstuff L.L.C
Name of the Listed Company A subsidiary of
Foodco National Foodstuff PrJSC
Name of the appointed
Ahmed Gawish
General Manager
Starting date of appointment 10/07/2023
Mr. Ahmed Gawish is an adept leader and visionary with a rich
background in FMCG business management, marketing, and sales.
His extensive achievements showcase his pivotal role in fostering
growth and enhancing profitability. Holding an MBA in marketing
A brief summary of the management and recognized as a certified digital marketer, Mr.
appointed General Manager: Gawish's years of professional expertise and dynamic leadership
will propel Foodco to unparalleled success. His journey serves as a
compelling testament to the influence of innovation, unwavering
determination, and exceptional leadership in shaping industries
and attaining remarkable milestones.
Taysir Mokashfi
Board Secretary
10/08/2023
Page 1 of 1Foodco National Foodstuff Co PJSC
Results of the Board of Directors meeting
Date 10/08/2023
Name of the Listed Company Foodco National Foodstuff PJSC
Thursday 10/08/2023
Date and day of the meeting:
Via Video Conference (Microsoft Teams)
The starting time of the meeting 12:00 PM
The ending time of the meeting 01:00 PM
Number of board members present 5
Quorum achieved (%) 100%
1. The previous minutes of meeting has been approved.
2. The financial statement for the period ending 30/06/2023 has
been discussed and approved (Net loss AED10.426 million,
Decisions / Resolutions of the compared to net loss AED8.198 million for the same period of
meeting 2022).
3. Other operation matters have been discussed and the
appropriate decisions have been taken.
Taysir Mokashfi
Board Secretary
10/08/2023
Page 1 of 1 | positive |
ADSB
,414-1±19 °mull ci -41
Discussion
Management
and Analysis
HIGHLIGHTS
Revenue for the period ending 30 June 2022 was AED 373 million, more than 3 times ahead of the AED 104 million for the comparable period in 2021. The increase was primarily due
to the current period's contribution of the prestigious Falaj3 contract to build four new
Offshore Patrol Vessels for the UAE Navy which started in the late fourth quarter of last
year. The first milestone of the project has been completed ahead of schedule during the
current period with two further milestones scheduled in the second half of the year.
The net profit for the period was AED 5.2 million, compared with a net loss of AED (10.2)
million for the same period in 2021, even after a gain of AED 17.6 million on disposal of
floating dock was realized in April 2021, though the Company eventually reported a net
profit of AED 11 million for the full year 2021, after realizing AED 23.7 million of other
income attributed to the net reversal of provisions, and which saw the Company return to
profit after three years of net losses.
The net profit for the period would have been AED 11.7 million before the effect of an
increased IFRS 9 provision on receivables and contract assets resulting from a significant
increase in Central Bank interest rates impacted by the current economic situation. It is
expected that a proportion of this provision will be reversed on receipt of payments in due
course.
The Company has successfully delivered in the period the contract for the procurement
and refurbishment of a tug for one of its major customers, and delivered the order to build
three VIP Limos during the period. Additionally, the Company completed the delivery and
commission of specialized equipment under a military program while continuing its MSS
Military and Commercial repair and maintenance operations. During the period a total of
Mussafah Industrial Area atLAticui ddbin
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Military
and Commercial
repair
and
maintenance
operations.
During
the
period
a total
of
commission
of
specialized
equipment
under
a
military
program
while
continuing
its
MSS
three
VIP Limos
during
the
period.
Additionally,
the
Company
completed
the
delivery
and
and
refurbishment
of
a
tug
for
one
of
its
major
customers,
and
delivered
the
order
to
build
The
Company
has
successfully
delivered
in
the
period
the
contract
for
the
procurement
course. expected
that
a proportion
of
this
provision
will
be reversed
on
receipt
of
payments
in due
increase
in Central
Bank
interest
rates
impacted
by
the
current
economic
situation.
It
is
increased
IFRS
9
provision
on
receivables
and
contract
assets
resulting
from
a
significant
The
net
profit
for
the
period
would
have
been
AED
11.7
million
before
the
effect
of
an
profit
after three
years
of
net
losses.
income
attributed
to
the
net
reversal
of
provisions,
and
which
saw
the
Company
return
to
profit
of AED
11
million
for
the
full
year
2021,
after
realizing
AED
23.7
million
of
other
floating
dock
was
realized
in
April
2021,
though
the
Company
eventually
reported
a net
million
for the
same
period
in 2021,
even
after
a gain
of
AED
17.6
million
on
disposal
of
The
net
profit
for
the
period
was
AED
5.2
million,
compared
with
a
net
loss
of
AED
(10.2)
current
period
with
two
further
milestones
scheduled
in
the
second
half
of
the
year.
year.
The first
milestone
of the
project
has
been
completed
ahead
of
schedule
during
the
Offshore
Patrol
Vessels
for the
UAE
Navy
which
started
in
the
late
fourth
quarter
of last
to
the
current
period's
contribution
of
the
prestigious
Falaj3
contract
to
build
four
new
of
the
AED 104
million
for
the
comparable
period
in
2021.
The
increase
was
primarily
due
Revenue
for the
period
ending
30
June
2022
was
AED
373
million,
more
than
3
times
ahead
HIGHLIGHTS
and
Analysis
Management
Discussion
°mull
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41
,414-1±19 ADSBADSB
04--b9
dearth cl
94 dockings were completed, and ADSB received an LOI from its major customer for the
major refit of the second of class vessel of a previously delivered naval ship build program.
Though the five-year Falaj3 contract will provide ADSB with a sustainable basis for future
growth and profitability, ADSB continues to be very active in pursuing both additional
domestic and export sales opportunities. The Company now has a significant pipeline of
new business opportunities and expects to be able to announce contract signatures in the
second half of 2022.
After payments made to major Falaj3 sub -contractors during the period the net cash
position at June 30 was AED 255 million. The cash position is expected to remain healthy
for the remainder of 2022 but will return to a cash neutral position on the Falaj contract as
payments are made according to the agreed schedules with sub -contractors.
David Massey
Chief Executive Officer
Mussafah Industrial Area ascli011 Euibia
P.O. Box 8922 8922 :y.,p
Abu Dhabi, UAE avian apjall c.)1iLo)11,,n4bg4i
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P.O.
Box
8922
8922
:y.,p
Mussafah
Industrial
Area
ascli011
Euibia
Chief
Executive
Officer
David
Massey
payments
are
made
according
to
the
agreed
schedules
with
sub
-contractors.
for
the
remainder
of
2022
but
will
return
to
a
cash
neutral
position
on
the
Falaj
contract
as
position
at
June
30
was
AED
255
million.
The
cash
position
is
expected
to remain
healthy
After
payments
made
to
major
Falaj3
sub
-contractors
during
the
period
the
net
cash
second
half
of
2022.
new
business
opportunities
and
expects
to
be
able
to
announce
contract
signatures
in
the
domestic
and
export
sales
opportunities.
The
Company
now
has
a
significant
pipeline
of
growth
and
profitability,
ADSB
continues
to
be
very
active
in
pursuing
both
additional
Though
the
five-year
Falaj3
contract
will
provide
ADSB
with
a
sustainable
basis
for
future
major
refit
of
the
second
of
class
vessel
of
a
previously
delivered
naval
ship
build
program.
94
dockings
were
completed,
and
ADSB
received
an
LOI
from
its
major
customer
for
the
wadi
cl
04--b9 ADSB | positive |
Q1 2023 Results Report
Fertiglobe Reports Q1 2023 Results
Highlights:
Financial and Outlook
•
Fertiglobe reported Q1 2023 revenues and adjusted EBITDA at $694 million and $297 million, respectively.
Adjusted net profit was $135 million in Q1 2023, and the company generated free cash flow of $271 million
in Q1 2023.
•
Fertiglobe delivered 9% higher own-produced sales volumes in Q1 2023 compared to Q1 2022, supported
by a disciplined commercial strategy and centralized distribution capabilities.
•
Fertiglobe is well positioned to balance dividend payments while selectively pursuing value-creative growth
opportunities below replacement cost, supported by its balance sheet (net cash: $564 million as of
31 March 2023).
•
Fertiglobe's management guides for H1 2023 dividends of at least $250 million, payable in October 2023.
The final dividend amount will be announced with Q2 2023 results in August 2023.
•
In addition to its manufacturing improvement plan, Fertiglobe has recently launched a cost optimization
initiative targeting an annualized run-rate of $50 million in savings to reinforce its first quartile cost
positioning, planned to be achieved over the next 12 - 18 months. In addition, the recent devaluation of
the Egyptian pound is expected to have a positive impact on the company's cost base.
•
Market Outlook: Nitrogen prices declined as result of energy price volatility, short term buying patterns
and ramp-up of new supply commissioned in 2022, but markets have begun to tighten into the second
quarter and prices started to improve in some regions. Decades low grain stocks and high farmer profitability
continue to support a demand recovery with limited new supply from 2023 onwards.
Corporate Updates
•
Fertiglobe produced on-spec green ammonia at its Egypt facilities in Q1 2023, following the start of
commissioning of Egypt Green Hydrogen in November 2022. The Final Investment Decision (FID) on the
full-scale 100MW plant is targeted during 2023.
Abu Dhabi, UAE – 09 May 2023: Fertiglobe (ADX: FERTIGLB), the strategic partnership between ADNOC and
OCI Global, the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertilizer
producer in the Middle East and North Africa (“MENA”) region, and an early mover in sustainable ammonia, today
reported Q1 2023 revenue of $694 million, adjusted EBITDA of $297 million, adjusted net profit of $135 million,
and free cash flow of $271 million. This is driven by lower selling prices during the quarter on continued declines
in European gas prices and demand delays in several key regions, primarily due to weather conditions, as well as
the deferral of 100kt in urea shipments to Ethiopia, with an estimated EBITDA impact of $35 million.
1Q1 2023 Results Report
Ahmed El-Hoshy, CEO of Fertiglobe, commented:
“The nitrogen outlook remains favorable in the medium to longer term. New supply that commisioned in 2022,
has been absorbed by the market, and limited major greenfield supply additions are expected in the next four
years. Agricultural demand is buoyed by attractive farmer economics, incentivizing nitrogen fertilizer application to
replenish decade-low grain stocks. European gas futures over next winter and 2024 are pricing in expectations
of a tighter market than current levels, implying ammonia cost support of ~$815/t (including CO ) and ~$650/t
2
(excluding CO ). This should result in closures of European marginal production if pricing remains below cost for a
2
sustained period.
Natural gas prices declined sharply in Q1 2023 due to a mild winter and resulted in lower marginal costs in
Europe, causing deferred buying in several key regions. This, combined with relatively muted industrial demand,
led to selling prices well below their levels in the same period last year, impacting our earnings growth in Q1
2023 on a year on year basis. In Q1 2023, we have delivered revenues of $694 million, adjusted EBITDA of
$297 million, and free cash flow of $271 million, below Q1 2022 levels of $1,185 million, $625 million, and
$521 million, respectively.
I am pleased to report that despite slower price momentum in Q1 2023 and a deferral of two 50kt urea shipments
to Ethiopia at a weighted average price of $700/t, our team was able to deliver 9% higher own-produced sales
volumes during the quarter. This is driven by our disciplined commercial strategy and centralized distribution
capabilities, targeting demand centres that offer attractive netbacks. We continue to have a strong order book for
the coming months.
In line with our continued commitment to creating and returning shareholder value, we are pleased to announce
our guidance for H1 2023 dividends at a minimum of $250 million or the equivalent of at least AED 11 fils per
share, payable in October 2023, with the exact amount to be disclosed with Q2 2023 results in August 2023.
We are progressing several initiatives to further support free cash generation, including our manufacturing
improvement plan announced last year, which is on track to deliver operational and EBITDA efficiencies over the
next 2-3 years. In addition, we also recently launched an initiative to further optimize Fertiglobe's cost structure,
targeting $50 million in annualized savings, aimed to reinforce our top quartile cash cost positioning, and we
expect to achieve these savings over the next 12 - 18 months. In addition, we expect a positive impact from the
recent devaluation of the Egyptian pound on our cost base.
Following the commissioning of the first phase of Egypt Green Hydrogen in Ain Sokhna during COP27 in Q4 2022,
we are excited to announce the production of on-spec green ammonia at our facilities in Egypt during the quarter.
We expect volumes to ramp up over the year, and target 2023 FID on the full scale 100MW electrolyzer plant,
planned to produce up to c.15,000 tons of green hydrogen as feedstock for production of up to 90,000 tons of
green ammonia per year in Fertiglobe’s existing ammonia plants.
With these projects and initiatives, we reiterate our commitment to delivering on our sustainability agenda, and to
showing serious progress towards a more sustainable production footprint for ourselves, while contributing to the
decarbonization of other industries in our value chain, including power and transport.
I am grateful to the Fertiglobe team for a continued focus on safety, performance and excellence and look forward
to our journey towards a more sustainable future for our industry and for others.”
2Q1 2023 Results Report
Markets
Fertiglobe believes the outlook for nitrogen markets continues to be supported by crop fundamentals and
tight supply dynamics in the medium term
i. Nitrogen demand is expected to recover to support rebuilding of global grain stocks:
◦
Global grain stock-to-use ratios remain at the lowest levels in 20 years, and it will likely take at least
until 2025 to replenish stocks.
◦
Forward grain prices (US corn futures >$5 / bushel to the end of 2025, compared to $3.7 / bushel
from 2015 - 2019) support farm incomes and incentivize nitrogen demand to be above historical
trend levels.
◦
The recent decline in nitrogen pricing is supportive of improving affordability and demand.
ii. Nitrogen supply is expected to be tighter over 2023 – 2027:
◦
In 2022, six million tons of new urea capacity commissioned, with some plants ramping up in 2023.
Industry consultants expect no new major greenfield urea supply in 2023 and limited additions
to 2027.
◦
Chinese urea exports are expected to remain low over the medium term in the range of 3 – 4 mtpa.
iii. Feedstock pricing is expected to remain well above historical averages:
◦
2023 - 2025 forward European gas prices are c.$16/mmBtu (c.3x higher than 2015-2019), with higher
prices anticipated for next winter
◦
The gas forwards imply marginal cost support levels for ammonia of c.$815/ton including CO for next
2
winter and 2024, which should result in closures of European marginal production if pricing remains
below cost for a sustained period of time.
Dividends and capital structure
On 22 December 2022, Fertiglobe refinanced its existing bridge loan facility with a new three-year facility
amounting to $300 million, with a margin of 1.5% and a new five-year facility amounting to $600 million, with
a margin of 1.75%, extending Fertiglobe’s weighted average debt maturity from 2 years to 4 years. In addition,
the company increased the capacity of its existing Revolving Credit Facility (RCF) by $300 million to reach
$600 million, and extended the maturity to December 2027 (from August 2026), providing ample liquidity.
As at the end of March 2023, Fertiglobe reported a net cash position of $564 million (0.3x net cash / adjusted LTM
EBITDA), compared to net cash of $287 million as at 31 December 2022 (0.1x net cash / adjusted LTM EBITDA),
supporting future growth opportunities as well as dividend pay-out.
Fertiglobe remains committed to its dividend policy to substantially pay out all excess free cash flows after
providing for growth opportunities, while maintaining investment grade credit ratings (S&P: BBB-, Moody’s: Baa3,
Fitch: BBB-; all with stable outlooks). Fertiglobe paid a total of $1,450 million in cash dividends for 2022, including
H1 2022 dividends of $750 million paid in October 2022, and H2 2022 dividends of $700 million paid in April 2023.
Management guides for H1 2023 dividends of at least $250 million or the equivalent of at least AED 11 fils per
share, payable in October 2023.
3Q1 2023 Results Report
Consolidated Financial Results at a Glance1
Financial Highlights ($ million, unless otherwise stated)
$ million unless otherwise stated Q1 2023 Q1 2022 % Δ
Revenue 693.7 1,184.8 (41%)
Gross profit 269.1 587.8 (54%)
Gross profit margin 38.8% 49.6%
Adjusted EBITDA 297.3 624.6 (52%)
Adjusted EBITDA margin 42.9% 52.7%
EBITDA 295.2 619.6 (52%)
EBITDA margin 42.6% 52.3%
Adjusted net profit attributable to shareholders 135.4 361.0 (62%)
Reported net profit attributable to shareholders 135.7 356.6 (62%)
Earnings per share ($)
Basic earnings per share 0.016 0.043 (62%)
Diluted earnings per share 0.016 0.043 (62%)
Adjusted earnings per share 0.016 0.043 (62%)
Earnings per share (AED)
Basic earnings per share 0.060 0.158 (62%)
Diluted earnings per share 0.060 0.158 (62%)
Adjusted earnings per share 0.060 0.160 (62%)
Free cash flow 271.4 520.8 (48%)
Capital expenditure 12.7 9.4 35%
Of which: Maintenance Capital Expenditure 11.0 6.8 62%
31 Mar 23 31 Dec 22 % Δ
Total Assets 5,662.1 5,530.6 2%
Gross Interest-Bearing Debt 1,113.8 1,155.2 (4%)
Net (Cash)/Debt (564.2) (286.8) n/m
Q1 2023 Q1 2022 % Δ
Sales volumes (‘000 metric tons)
Fertiglobe Product Sold 1,363 1,254 9%
Third Party Traded 165 276 (40%)
Total Product Volumes 1,528 1,530 (0%)
1 Unaudited
4Q1 2023 Results Report
Operational Highlights
Highlights:
•
12-month rolling recordable incident rate to 31 March 2023 of 0.24 incidents per 200,000 manhours.
•
Fertiglobe's Q1 2023 performance was impacted by lower selling prices compared to peak pricing in the
same period last year, mainly on lower European gas prices combined with demand delays in several
key regions.
•
Fertiglobe’s total own-produced sales volumes were up 9% to 1,363kt in Q1 2023 vs Q1 2022, driven by:
◦
A 6% increase in ammonia own-produced sales volumes to 236kt from 223kt in Q1 2022
◦
A 9% increase in urea own-produced sales volumes to 1,127kt YoY compared to 1,031kt in Q1 2022
•
Traded third party volumes decreased 40% YoY to 165kt in Q1 2023, compared to 276kt in Q1 2022.
•
Total own-produced and traded third party volumes of 1,528kt were largely unchanged in Q1 2023 compared
to Q1 2022.
•
Middle East ammonia benchmark prices were down 31% in Q1 2023, while Egypt urea benchmark prices
were down 51% compared to the same period in 2022 (29% and 34% lower compared to Q4 2022).
Product sales volumes
Sales volumes ('000 metric tons) Q1 2023 Q1 2022 % Δ
Own Product
Ammonia 236 223 6%
Urea 1,127 1,031 9%
Total Own Product Sold 1,363 1,254 9%
Third-Party Traded
Ammonia 31 52 (40%)
Urea 134 224 (40%)
Total Traded Third-party Product 165 276 (40%)
Total Own Product and Traded Third-party 1,528 1,530 (0%)
5Q1 2023 Results Report
Benchmark prices1
Q1 '23 Q1 '22 % Δ Q4 '22 % Δ
Ammonia NW Europe, FOB $/mt 688 1,335 (48%) 1,109 (38%)
Ammonia Middle East, FOB $/mt 615 897 (31%) 868 (29%)
Granular Urea Egypt, FOB $/mt 409 841 (51%) 616 (34%)
Granular Urea Middle East, FOB $/mt 359 776 (54%) 565 (36%)
Natural gas TTF (Europe) $ / mmBtu 16.8 32.2 (48%) 28.4 (41%)
Natural gas Henry Hub (US) $ / mmBtu 2.8 4.6 (39%) 6.1 (54%)
1 Source: CRU, MMSA, ICIS, Bloomberg
Operational Performance
Total own-produced sales volumes were up 9% during the first quarter of 2023 to 1,363kt compared to the same
period last year.
Ammonia prices were well below peak prices in Q1 2022, with ammonia Middle East benchmark down 31%
YoY, while the urea Egypt benchmark price was down 51%. Compared to Q4 2022, the ammonia Middle East
benchmark was down 29%, while the urea Egypt benchmark price was down 34%.
The lower selling prices during the quarter resulted in a 41% YoY decrease in revenues to $694 million in Q1
2023. This translated into a 52% decline in adjusted EBITDA to $297 million in Q1 2023 from $625 million in Q1
2022. As a result, Fertiglobe’s adjusted EBITDA margin dropped to 43% in Q1 2023 from 53% in Q1 2022.
6Q1 2023 Results Report
Segment overview Q1 2023
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 609.9 83.8 - 693.7
Gross profit 265.9 3.2 - 269.1
Operating profit 242.0 3.2 (17.4) 227.8
Depreciation & amortization (65.6) (0.5) (1.3) (67.4)
EBITDA 307.6 3.7 (16.1) 295.2
Adjusted EBITDA 309.7 3.7 (16.1) 297.3
Segment overview Q1 2022
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 990.4 194.4 - 1,184.8
Gross profit 587.6 5.2 (5.0) 587.8
Operating profit 567.0 5.2 (14.6) 557.6
Depreciation & amortization (61.9) - (0.1) (62.0)
EBITDA 628.8 5.2 (14.4) 619.6
Adjusted EBITDA 628.8 5.2 (9.4) 624.6
7Q1 2023 Results Report
Financial Highlights
Summary results
Consolidated revenue decreased by 41% to $694 million in the first quarter of 2023 compared to the same quarter
in 2022, driven by lower urea selling prices.
Adjusted EBITDA declined by 52% YoY to $297 million in Q1 2023 compared to $625 million in Q1 2022.
Q1 2023 adjusted net profit was $135 million compared to an adjusted net profit of $361 million in Q1 2022.
Reported net profit attributable to shareholders was $136 million in Q1 2023 compared to a net profit attributable to
shareholders of $357 million in Q1 2022.
Consolidated statement of income
$ million Q1 2023 Q1 2022
Net revenue 693.7 1,184.8
Cost of sales (424.6) (597.0)
Gross profit 269.1 587.8
Other income - 0.2
SG&A (41.2) (30.4)
Other expense (0.1) -
Adjusted EBITDA 297.3 624.6
EBITDA 295.2 619.6
Depreciation & amortization (67.4) (62.0)
Operating profit 227.8 557.6
Interest income 2.3 0.4
Interest expense (21.5) (16.8)
Other finance (expense)/income (21.6) 15.9
Net finance costs (40.8) (0.5)
Net profit before tax 187.0 557.1
Income tax 1.8 (90.0)
Net profit 188.8 467.1
Non-Controlling Interest (53.1) (110.5)
Net profit attributable to shareholders 135.7 356.6
Adjusted net profit attributable to shareholders 135.4 361.0
8Q1 2023 Results Report
Reconciliation to Alternative Performance Measures
Adjusted EBITDA
Adjusted EBITDA is an Alternative Performance Measure (APM) that intends to give a clear reflection of
underlying performance of Fertiglobe’s operations. The main APM adjustments at EBITDA level relate to the
movement in provisions during the quarter
Reconciliation of reported operating income to adjusted EBITDA
Adjustment
$ million Q1 2023 Q1 2022 in P&L
Operating profit as reported 227.8 557.6
Depreciation and amortization 67.4 62.0
EBITDA 295.2 619.6
APM adjustments for:
Movement in provisions 2.1 5.0 Cost of sales
Total APM adjustments 2.1 5.0
Adjusted EBITDA 297.3 624.6
Adjusted net profit attributable to shareholders
At the net profit level, the main APM adjustments relate to the impact on non-cash foreign exchange gains and
losses on USD exposure as well as non-controlling interest
Reconciliation of reported net profit to adjusted net profit
$ million Q1 2023 Q1 2022 Adjustment in P&L
Reported net profit attributable to shareholders 135.7 356.6
Adjustments for:
Adjustments at EBITDA level 2.1 5.0
Finance income
Forex loss/(gain) on USD exposure 0.7 (14.6) and expense
Uncertain tax
Non-controlling interest (3.1) 14.0 positions / minorities
Total APM adjustments at net profit level (0.3) 4.4
Adjusted net profit attributable to shareholders 135.4 361.0
9Q1 2023 Results Report
Free Cash Flow and Net Cash
Free cash flow before growth capex amounted to $271 million during Q1 2023, compared to $521 million during
the same period last year, reflecting performance for the quarter and working capital inflows offset by tax, interest
and lease payments.
Total cash capital expenditures including growth capex were $13 million in Q1 2023 compared to $9 million in Q1
2022, of which $11 million was related to maintenance capital expenditures. For 2023, management maintains its
guidance for capital expenditures (excluding growth capital expenditure) of $100-130 million.
Reconciliation of EBITDA to Free Cash Flow and Change in Net Cash
$ million Q1 2023 Q1 2022
EBITDA 295.2 619.6
Working capital 9.9 (79.4)
Maintenance capital expenditure (11.0) (6.8)
Tax paid (21.7) (56.4)
Net interest paid (8.6) (11.7)
Lease payments (6.0) (1.3)
Dividends paid to non-controlling interests and withholding tax - (3.8)
Ecremage 13.6 60.6
Free Cash Flow 271.4 520.8
Reconciliation to change in net cash:
Growth capital expenditure (1.7) (2.6)
Other non-operating income 14.2 -
Net effect of movement in exchange rates on net cash (5.9) (25.7)
Other non-cash items (0.6) (3.5)
Net Cash Flow in Net Cash 277.4 489.0
10Q1 2023 Results Report
Investor and Analyst Conference Call
On 9 May 2023 at 3:30 PM UAE (12:30 PM London, 9:30 AM New York), Fertiglobe will host a conference call for
investors and analysts. To access the call please dial:
International: +44 20 3936 2999
UAE: 0800 0357 04553
UK: 020 3936 2999 / Toll free: 0800 640 6441
United States: 1 646 664 1960 / Toll Free: 1 855 9796 654
Passcode: 845998
About Fertiglobe:
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, and an early mover
in sustainable ammonia. Fertiglobe’s production capacity comprises of 6.7 million tons of urea and
merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest
producer of nitrogen fertilizers in the Middle East and North Africa (MENA), and benefits from direct access to
six key ports and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered
in Abu Dhabi and incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,700
employees and was formed as a strategic partnership between OCI Global (“OCI”) and the Abu Dhabi
National Oil Company (“ADNOC”). Fertiglobe is listed on the Abu Dhabi Securities Exchange (“ADX”) under the
symbol “FERTIGLB” and ISIN “AEF000901015. To find out more, visit:www.fertiglobe.com.
For additional information, contact:
Fertiglobe Investor Relations: For additional information on Fertiglobe:
Rita Guindy www.fertiglobe.com
Director
Email: rita.guindy@fertiglobe.com
Hans Zayed
Director
Email: hans.zayed@fertiglobe.com
Investor.relations@fertiglobe.com
11 | positive |
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