Picture used for illustrative purpose.
Customers of Adnoc Distribution have redeemed more than 1 billion Adnoc Rewards points in a single calendar month. The milestone marks the latest of the loyalty programme; the first of its kind to launch in the UAE in November 2019, delivering on its commitment to customers and proving its growing popularity.
Since its launch, Adnoc Rewards has continued to deliver tailored offers to suit customer habits and needs; introducing a strong partnership programme with 83 affiliates including Etihad Guest and Etisalat Smiles by the end of Q1 2022. Rewards members earn points on every dirham they spend, redeemable against purchases made at Adnoc Oasis and Adnoc stations, including fuel purchases, resulting in over 1.3 million customers now enroled in the programme by end of Q1 2022.
In its latest offering, the programme launched the ‘Let’s Go Shop and Win’ summer campaign which runs through 31st July, 2022. The offer enters customers in monthly raffle draws for every Rewards purchase they make at any Adnoc station nationwide, for a chance to win exciting prizes that vary from iPhone 13 to cash, 100g gold bars, one year of free fuel, one year of free car washes, one year of free lube changes, and three brand-new Chevrolet cars.
Bader Saeed Al Lamki, Chief Executive Officer, Adnoc Distribution, said, “Adnoc Reward points are more popular than ever – customers are seeing increased value each month with increasly relevant and tailored offers, including the option to redeem points on fuel transactions. The ongoing ‘Let’s Go Shop and Win’ campaign offers customers a chance to win a range of valuable prizes through our upgraded, customer-focused offering, which is now tailored to their preferences based data collected and analyzed through Adnoc Rewards.”
Adnoc Distribution reported strong first-quarter 2022 results, recording a 7.8% year-on-year increase in EBITDA to AED881 million with a 6.3% year-on-year increase in net profit to Dhs671 million for the quarter, while cash flow generation remained strong with free cash flow of Dhs1.9 billion.
The company has seen a strong recovery in total fuel volumes compared to the first quarter of 2021, with an increase of 11% year-on-year. In addition, corporate fuel volumes witnessed strong growth with a 19% year-on-year increase, partially driven by the signing of new sales agreements confirmed in the final quarter of 2021. Non-fuel retail gross profit grew 11% compared with the same period in 2021, with a 20% increase in non-fuel transactions across the UAE.
ADNOC Distribution continued to increase its footprint throughout the first quarter of the year, delivering local and international network expansion and bringing its network total to more than 500 across all geographies. In Saudi Arabia, the company added 15 new stations, increasing its network to a total of 55 stations. In the UAE, the company opened three new stations, taking its total domestic network to 464. Adnoc Distribution remains on track to deliver 20-30 new sites in the UAE before the end of 2022.
In addition to the continued expansion of its service network, Adnoc Voyager lubricants maintained strong momentum in its international expansion through the first quarter, bringing its export network to a total of 20 countries. The company also expanded its product offering with the launch of the Adnoc Voyager Green Series, which offers customers a 100% plant-based lubricant range for petrol and diesel engines.
The Adnoc Rewards loyalty programme also continued to add members in the first quarter of 2022, with more than 1.3 million members now enrolled and 83 partners providing discounts and deals through the ADNOC Distribution app. The programme has been expanded to include a fuel redemption option, whereby customers can pay for their fuel with their Adnoc Rewards points.
During its Annual General Assembly Meeting on 24th March, Adnoc Distribution shareholders approved a dividend for the second half 2021 of $350m (10.285 fils per share), which was paid in April 2022, bringing the total dividend of 2021 to $700m (20.57 fils per share).
The company’s robust and continued growth has enabled a progressive dividend policy for investors. Its dividend policy sets a dividend of a minimum of Dhs2.57 billion for 2022, providing visible payback to shareholders until April 2023. The dividend policy for the years thereafter sets a dividend equal to at least 75% of distributable profits. The company also continues to enhance its attractive investor position, with its inclusion in the new blue chip index launched as a partnership between FTSE Russell and Abu Dhabi Securities Exchange (ADX).