Adnoc Distribution, the fuel-retailing unit of the Abu Dhabi government-run energy producer has revealed its plans to enter India’s lubricant market in the third quarter of 2019. This move is aligned with Adnoc’s aim to boost its corporate sales.
“We might have some announcements this year, in terms of at least by the end of the third quarter, we’d be able to give on the lubricants side. We’re assessing all those options and we continue to find and search for that one pathway into the Indian market,” Mohamed Al Hashimi, chief operating officer at Adnoc Distribution told the media.
According to Mohamed Al Hashimi, Adnoc Distribution’s decision to enter India’s lubricant market is part of its plan to globalise itself in lubricant and base oil markets. Recently, the global lubricant markets have started to attract UAE-based fuel retailers such as Adnoc and Emirates National Oil Company as they seek to diversify and tap into these new potential markets.
The company also revealed its plans to upgrade 100 convenience stores in the UAE by the end of the next quarter and plans to realise cost savings of around $50 million by year-end.
The company on Sunday announced a 4.3 percent increase in net profits to $319 million in the first of half of 2019, when compared to the same period last year. Its financial report also showed a free cash flow generation of $366 million in the first half of 2019, up by 21 percent year-on-year.
While speaking about the results, Adnoc Distribution’s Acting CEO, Saeed Mubarak Al Rashdi told the media that, “Thanks to an unwavering focus on our customers, the strength of our business model, and the successful execution of our strategic initiatives, we have once again delivered solid results in the first half of 2019.”