ADNOC Distribution's investment in Egypt based on 'strong fundamentals, boasting current 244 service stations: CEO to ET

CAIRO - 21 February 2024: ADNOC Distribution has 244 service stations in Egypt, CEO of the company, Bader Saeed Al Lamki, told Egypt Today (ET).

 

“In the UAE, there are more than 520 stations. In the Kingdom of Saudi Arabia, there are 67 stations,” Al Lamki added.

 

Al Lamki shared insights in an exclusive interview with ET during the Egypt Energy Show (EGYPS) 2024, marking the company's first participation in the conference, which Al Lamki described as impressive and exciting.

 

Reflecting on the event's importance, Al Lamki commended the efforts of the Egyptian Minister of Petroleum and organizers for assembling a diverse array of stakeholders, including partners, technology developers, policymakers, and financiers, under one roof. He emphasized the value of the three-day event as an opportunity for ADNOC Distribution to engage, share experiences, and explore collaboration prospects.

 

He acknowledged the strong financial results announced at the end of January, attributing the success to the company's operations in the UAE, Saudi Arabia, and Egypt. 

 

The company achieved a 4.6 percent year-on-year growth in profits before interest, taxes, and depreciation, surpassing the one-billion-dollar mark (3.68 billion dirhams).

 

“We do have an excellent track record in developing the fuel and non-fuel businesses, and we believe that this market has the ingredients and has the foundations to continue to grow, whether in the UAE or in Saudi Arabia or in Egypt, given the population, the infrastructure, the regulation,” he stated, noting the readiness of his company.

 

Al Lamki emphasized ADNOC Distribution's 50 years of experience and highlighted the development of service stations, with 244 stations in Egypt alone. He expressed confidence in the market's potential for growth, considering factors such as population, infrastructure, and regulations.

 

The CEO discussed the acquisition of Total Energies, stating that it aligns with the company's smart growth strategy, stating that the decision was based on strong fundamentals, including a highly populated country with a demand for progress and energy. Al Lamki highlighted the company's long-term view, covering fuel retail, lubricant business, and aviation services.

 

“The investment in Egypt was based on fundamentals, very strong fundamentals. One, it is a highly populated country with youth that are demanding progress, demanding expansion, demanding energy. So the ability to grow is not only short-term but also long-term. The regulations are there. The Ministry of Petroleum, His Excellency Engineer Tarek El-Molla, has set the right framework for investors to come here,” he said.

 

He added that they are definitely happy with the investment. “We take a long-term view in the market and we have a range of activities including dealing with our fuel retail, dealing with our ADNOC Voyager, our lube business, whereby we introduce these products to the customers here. And we are also looking at the aviation business, where we supply and operate jet fuel products to airlines.”

 

Regarding the partnership with Fertiglobe, he mentioned this partnership resulted in producing ADNOC Blue, which is a product that allows heavy vehicles, people with diesel-run engines, to reduce their emissions. 

 

“We are happy to provide it here,” he stated, noting that they are starting now in the UAE. “And definitely as we grow the sales, we'll be looking forward to also bringing that product here as well,” Al Lamki said.

 

Al Lamki touched upon the company's sponsorship of Pyramid Club in Egypt, emphasizing the commitment to supporting societies where they operate. He sees football as an essential part of supporting Egyptian society and expressed the company's desire to see the club succeed.

 

When asked about challenges and opportunities in the Egyptian market, Al Lamki noted more opportunities than challenges. He highlighted Egypt's strong fundamentals, population, infrastructure, and ongoing economic development as factors contributing to excitement about further expansion and growth.

 

On the topic of future expansions and investments, the CEO affirmed the company's continuous evaluation of opportunities both in Egypt and beyond. While future expansions are in consideration, the company will announce details at the appropriate time after fulfilling internal and disclosure obligations.