ABU DHABI — ADNOC Distribution on Tuesday reported that its first-half 2021 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at 1.53 billion dirhams ($420 million), with a net profit of 1.15 billion dirhams. For the second quarter, EBITDA was 712 million dirhams with a net profit of 521 million dirhams, according to a press release on Tuesday. The strong results were driven by higher fuel volumes, improvement in non-fuel and commercial gross profit margin and increased operational efficiencies made in the first half of 2021. The company’s fuel volumes saw progressive recovery towards pre-COVID levels, an indication of improving consumer sentiment following the successful vaccination drive across the UAE, ADNOC Distribution said in a press release on Tuesday. The company continues to add incremental volumes from its Dubai stations alongside a proactive sales strategy in its corporate business. Operationally, as part of its ongoing transformation, the company remains committed to reducing operating costs and ensuring competitiveness in the UAE fuel retail and convenience store sector. Throughout the first half of 2021, ADNOC Distribution’s operational expenditure (excluding depreciation) decreased by 10 percent compared to H1 2020. ADNOC Distribution continues to maintain a robust balance sheet and remains well-positioned to expand both its domestic and international portfolio in line with its smart growth strategy. During the first half of 2021, ADNOC Distribution opened 12 new stations in the UAE. In H1 2021, the company received no-objection certificates from the Saudi General Authority for Competition (GAC) to acquire 35 stations in Saudi Arabia. This was previously announced in December 2020 and February 2021. It also enhanced payment options, including through the ADNOC Distribution app, which offers a fully contactless customer experience, and the growing popularity of its online delivery service, available through Talabat and Carriage from more than 100 ADNOC Oasis stores across the UAE. Also, a total of 24 ADNOC Oasis convenience stores were refurbished throughout the first half of 2021. Bader Al Lamki, Chief Executive Officer of ADNOC Distribution, said, "ADNOC Distribution’s second quarter and half-year results further reinforce the company’s growth story and its strong standing within the fuel retail sector. We have a steadfast focus to provide modern fuel retail convenience to customers, deliver on the company’s ambitious strategy, and build long-term shareholder value through the next phase of our growth. "These results reflect our focused drive towards delivering on our strategy and sustained progress in all of our strategic pillars: fuel, non-fuel and cost-efficiency. We continue to make disciplined capital investments, achieving cost savings while growing our service station network, and maintaining high levels of safety, quality and customer experience." The company has continued its drive to enhance its customer offering through ADNOC Rewards, the UAE’s first customer loyalty program from a fuel provider. A total of 18 new partners were added to the Rewards program in H1 2021, bringing the total number of partners to 40. Through the end of H1 2021, ADNOC Rewards has almost 1.1 million registered users, with 16.9 million transactions made through the Rewards program to date. To encourage usage and drive the increase in customer spending, a number of offers and promotional campaigns were held in-store and at the station, aiming to further enhance consumer experience and offer a range of added value incentives that meet a wide range of customer tastes and interests, offering more with every visit to an ADNOC service station. ADNOC Distribution reiterated that its 2021 dividend policy is set to continue with a dividend of 2.57 billion dirhams. The company expects to pay the first six-month dividend of 2021 (10.285 fils per share) in October of this year, subject to board approval. During its General Assembly meeting in March 2021, the company announced an amendment to its dividend policy for 2022, setting a minimum of 2.57 billion dirhams dividend for 2022 (compared to a minimum of 75 percent of distributable profits as per previous policy), providing visible payback to shareholders until April 2023. The dividend policy for the years thereafter remains unchanged at a dividend equal to at least 75 percent of distributable profits. In May 2021, ADNOC announced a successful placement of approximately 375 million shares in ADNOC Distribution, representing an additional three percent approximately of the registered share capital of the company. It also issued approximately $1.195 billion of senior unsecured bonds (Exchangeable Bonds) due 2024, exchangeable into existing shares of ADNOC Distribution, constituting approximately seven percent of the registered share capital of ADNOC Distribution under certain conditions. Following the transactions, ADNOC will retain at least a 70 percent strategic stake in the company as it continues to see significant growth potential in ADNOC Distribution. In May 2021, the company announced that Morgan Stanley Capital International (MSCI) had included ADNOC Distribution as part of its prestigious MSCI Emerging Markets Index. ADNOC Distribution was included in the MSCI EM Index after meeting the necessary requirements and will now be among nine UAE-listed companies to be part of the MSCI EM index, which is most widely tracked by global institutional investors.