Reviewreportand interimfinancial information
For the three-month period ended 31 March 2024
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
Review report and interim financial information for the three-month period ended 31 March 2024
Director's report | 3 |
Report on review of interim financial information | 4 |
Interim condensed consolidated statement of financial position | 5 |
Interim condensed consolidated statement of profit or loss | 6 |
Interim condensed consolidated statement of comprehensive income | 7 |
Interim condensed consolidated statement of changes in equity | 8 |
Interim condensed consolidated statement of cash flows | 9 |
Notes to the interim condensed consolidated financial statements | 10-25 |
2
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
Directors' report
for the three-month period ended 31 March 2024
The Directors present their report together with the interim financial information of Abu Dhabi National Oil Company for Distribution PJSC (the "Company") and its subsidiaries (collectively referred to as "the Group") for the three-month period ended 31 March 2024.
Principal activities
The principal activities of the Group are the marketing of petroleum products, compressed natural gas and ancillary products.
Review of business
During the period, the Group reported revenue of AED 8,749,736 thousand (31 March 2023: AED 7,998,430 thousand).
Profit for the period was AED 527,695 thousand (31 March 2023: AED 541,909 thousand).
The appropriation of the results for the period is follows: | |
31 March 2024 | |
(unaudited) | |
AED'000 | |
Retained earnings as at 1 January 2024 | 1,971,140 |
Profit for the period | 527,695 |
Dividends declared | (1,285,625) |
Non-controlling interests | 21,945 |
Retained earnings as at 31 March 2024 | 1,235,155 |
For the Board of Directors
Chairman
8 May 2024
Abu Dhabi, UAE
3
Grant Thornton Audit
and Accounting Limited
- Abu Dhabi
Office 1101, 11th Floor
Al Kamala Tower
Zayed the 1st Street
Khalidiya
Abu Dhabi, UAE
T +971 2 666 9750
www.grantthornton.ae
REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
Introduction
We have reviewed the accompanying interim condensed consolidated statement of financial position of Abu Dhabi National Oil Company for Distribution PJSC ("ADNOC Distribution" or "the Company") and its subsidiaries (collectively referred to as "the Group") as at 31 March 2024 and the related interim condensed consolidated statement of profit or loss and the interim condensed consolidated statement of comprehensive income for the three-month period then ended and the interim condensed consolidated statement of changes in equity and the interim condensed consolidated statement of cash flow for the three-month period then ended and other related explanatory notes. Management is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with International Accounting Standard 34, 'Interim Financial Reporting' as issued by the International Accounting Standards Board (IASB). Our responsibility is to express a conclusion on this interim condensed consolidated financial information 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 information is not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting' as issued by the IASB.
GRANT THORNTON UAE
Dr. Osama El-Bakry
Registration No. 935
Abu Dhabi, United Arab Emirates
8 May 2024
© 2024 Grant Thornton UAE - All rights reserved. Grant Thornton UAE represents all legal licenses under which Grant Thornton Audit and Accounting Limited Corporation, A British Virgin Islands ("BVI") registered Branch, operate in the UAE. These licenses include the Abu Dhabi, Dubai and Sharjah based branches - Grant Thornton Audit and Accounting Limited - registered with the Abu Dhabi Global Market - Grant Thornton Audit and Accounting Limited Corporation BVI - registered with the Dubai Financial Services Authority.
"Grant Thornton" refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another's acts or omissions.
grantthornton.ae
4
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
Interim condensed consolidated statement of financial position as at 31 March 2024
Note | |
Assets | |
Non-current assets | |
Property, plant and equipment | 5 |
Right-of-use assets | 10 |
Goodwill and intangible assets | 6 |
Advances to contractors | |
Deferred tax assets | |
Other non-current assets | |
Total non-current assets | |
Current assets | |
Inventories | 7 |
Trade receivables and other current assets | 8 |
Due from related parties | 9 |
Term deposits | 11 |
Cash and bank balances | 11 |
Total current assets | |
Total assets | |
Equity and liabilities | |
Equity | |
Share capital | |
Statutory reserve | |
Foreign currency translation reserve | |
Retained earnings | |
Equity attributable to owners of the Company | |
Non-controlling interests | |
Total equity | |
Non-current liabilities | |
Lease liabilities | 10 |
Borrowings | 12 |
Provision for decommissioning | 14 |
Provision for employees' end of service benefit | |
Deferred tax liability | |
Other non-current liabilities | |
Total non-current liabilities | |
Current liabilities | |
Lease liabilities | 10 |
Trade and other payables | 13 |
Due to related parties | 9 |
Total current liabilities
Total liabilities
Total equity and liabilities
31 March 2024 | 31 December 2023 | ||
(unaudited) | (audited) | ||
AED'000 | AED'000 | ||
7,162,500 | 7,189,661 | ||
1,768,614 | 1,778,418 | ||
1,016,799 | 1,053,811 | ||
57,781 | 38,466 | ||
11,822 | 2,166 | ||
12,866 | 15,551 | ||
10,030,382 | 10,078,073 | ||
1,417,262 | 1,294,423 | ||
3,474,897 | 3,519,413 | ||
919,884 | 805,558 | ||
200,225 | 200,225 | ||
3,394,890 | 2,993,937 | ||
9,407,158 | 8,813,556 | ||
19,437,540 | 18,891,629 | ||
1,000,000 | 1,000,000 | ||
503,921 | 503,921 | ||
(39,875) | (2,995) | ||
1,235,155 | 1,971,140 | ||
2,699,201 | 3,472,066 | ||
264,942 | 323,767 | ||
2,964,143 | 3,795,833 | ||
1,551,923 | 1,564,251 | ||
5,491,698 | 5,492,280 | ||
152,002 | 149,362 | ||
196,144 | 192,271 | ||
132,704 | 134,962 | ||
8,583 | 10,671 | ||
7,533,054 | 7,543,797 | ||
187,549 | 183,013 | ||
3,780,987 | 2,541,355 | ||
4,971,807 | 4,827,631 | ||
8,940,343 | 7,551,999 | ||
16,473,397 | 15,095,796 | ||
19,437,540 | 18,891,629 |
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim condensed consolidated financial statements present fairly in all material respects the consolidated financial position, financial performance and cash flows of the Group.
Wayne Beifus | Bader Saeed Al Lamki | Dr. Sultan Ahmed Al Jaber |
Chief Financial Officer | Chief Executive Officer | Chairman of the Board of Directors |
The accompanying notes form an integral part of these interim condensed consolidated financial statements.
5
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
Interim condensed consolidated statement of profit or loss
For the three-month period ended 31 March 2024
3 months ended | |||||
31 March 2024 | 31 March 2023 | ||||
Note | AED'000 | AED'000 | |||
Revenue | 15 | 8,749,736 | 7,998,430 | ||
Direct costs | (7,269,133) | (6,734,540) | |||
Gross profit | 1,480,603 | 1,263,890 | |||
Distribution and administrative expenses | 16 | (772,741) | (668,774) | ||
Other income | 44,605 | 48,655 | |||
Impairment losses and other operating expenses | (17,245) | (17,920) | |||
Operating profit | 735,222 | 625,851 | |||
Interest income | 47,938 | 15,176 | |||
Finance costs | (209,163) | (94,787) | |||
Profit for the period before tax | 573,997 | 546,240 | |||
Income tax expense | (46,302) | (4,331) | |||
Profit for the period | 527,695 | 541,909 | |||
Attributable to: | |||||
Equity holders of the Company | 549,640 | 537,321 | |||
Non-controlling interests | (21,945) | 4,588 | |||
527,695 | 541,909 | ||||
Basic and diluted earnings per share | 17 | 0.044 | 0.043 |
The accompanying notes form an integral part of these interim condensed consolidated financial statements.
6
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
Interim condensed consolidated statement of comprehensive income
For the three-month period ended 31 March 2024
3 months ended | ||||
31 March 2024 | 31 March 2023 | |||
AED'000 | AED'000 | |||
Profit for the period | 527,695 | 541,909 | ||
Items that may be reclassified to profit or loss in subsequent periods | ||||
Exchange differences on translation of foreign operations | (73,760) | (3,824) | ||
Other comprehensive loss for the period | (73,760) | (3,824) | ||
Total comprehensive income for the period | 453,935 | 538,085 | ||
Attributable to: | ||||
Equity holders of the Company | 512,760 | 535,409 | ||
Non-controlling interests | (58,825) | 2,676 | ||
453,935 | 538,085 |
The accompanying notes form an integral part of these interim condensed consolidated financial statements.
7
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
Interim condensed consolidated statement of changes in equity
For the three-month period ended 31 March 2024
Equity | |||||||||||||
Foreign | attributable | ||||||||||||
currency | to equity | Non- | |||||||||||
Share | Statutory | translatio | Retained | holders of | controlling | ||||||||
capital | reserve | n reserve | earnings | the parent | interest | Total Equity | |||||||
AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | |||||||
Balance as at 1 January 2023 (audited) | 1,000,000 | 500,000 | - | 1,944,890 | 3,444,890 | - | 3,444,890 | ||||||
Profit for the period | - | - | - | 537,321 | 537,321 | 4,588 | 541,909 | ||||||
Other comprehensive loss for the period | - | - | (1,912) | - | (1,912) | (1,912) | (3,824) | ||||||
Dividends declared (note 23) | - | - | - | (1,285,625) | (1,285,625) | - | (1,285,625) | ||||||
Acquisition of a subsidiary | - | - | - | - | - | 95,921 | 95,921 | ||||||
Balance as at 31 March 2023 (unaudited) | 1,000,000 | 500,000 | (1,912) | 1,196,586 | 2,694,674 | 98,597 | 2,793,271 |
Balance as at 1 January 2024 (audited) | 1,000,000 | 503,921 | (2,995) | 1,971,140 | 3,472,066 | 323,767 | ||||||||||||||
Profit for the period | - | - | (21,945) | |||||||||||||||||
- | 549,640 | 549,640 | ||||||||||||||||||
Other comprehensive loss for the period | - | - | (36,880) | |||||||||||||||||
(36,880) | - | (36,880) | ||||||||||||||||||
Dividends declared (note 23) | - | - | - | |||||||||||||||||
(1,285,625) | (1,285,625) | - | ||||||||||||||||||
Balance as at 31 March 2024 (unaudited) | 1,000,000 | 503,921 | (39,875) | 1,235,155 | 2,699,201 | 264,942 |
3,795,833
527,695
(73,760)
(1,285,625)
2,964,143
The accompanying notes form an integral part of these interim condensed consolidated financial statements.
8
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
Interim condensed consolidated statement of cash flow
For the three-month period ended 31 March 2024
3 months ended | ||||
31 March 2024 | 31 March 2023 | |||
AED'000 | AED'000 | |||
Cash flows from operating activities | ||||
Profit for the period before tax | 573,997 | 546,240 | ||
Adjustments for: | ||||
Depreciation of property, plant and equipment | 130,481 | 118,715 | ||
Depreciation of right-of-use assets | 35,618 | 29,618 | ||
Amortization of intangible assets | 11,274 | 1,884 | ||
Impairment losses on receivables | 15,443 | 6,507 | ||
Recoveries on receivables | (2,827) | (2,283) | ||
Employees' end of service benefit charge | 8,239 | 9,185 | ||
Inventories written-off | 1,086 | - | ||
(Gain)/loss on disposal of property, plant and equipment | (17,055) | 786 | ||
Finance costs | 209,163 | 101,045 | ||
Interest income | (47,938) | (15,176) | ||
Operating cash flows before movements in working capital | 917,481 | 796,521 | ||
Increase in inventories | (121,753) | (54,333) | ||
Decrease/(increase) in trade receivables and other current assets | 57,132 | (145,137) | ||
(Increase)/decrease in due from related parties | (114,326) | 33,967 | ||
(Decrease)/increase in trade and other payables | (13,534) | 15,854 | ||
Increase in due to related parties | 144,176 | 616,354 | ||
Cash generated from operating activities | 869,176 | 1,263,226 | ||
Payment of employees' end of service benefit | (4,366) | (6,214) | ||
Net cash generated from operating activities | 864,810 | 1,257,012 | ||
Cash flows from investing activities | ||||
Payments for purchases of property, plant and equipment | (273,324) | (198,249) | ||
Payments for advances to contractors | (27,615) | (12,620) | ||
Proceeds from disposal of property, plant and equipment | 17,273 | 1,726 | ||
Interest received | 47,938 | 15,176 | ||
Payments for acquisition of subsidiary, net of cash acquired | - | (542,755) | ||
Net cash used in investing activities | (235,728) | (736,722) | ||
Cash flows from financing activities | ||||
Payment of lease liabilities | (54,707) | (43,054) | ||
Proceeds from borrowings | - | 230 | ||
Repayment of borrowings | (478) | - | ||
Dividends paid | - | (1,285,625) | ||
Finance cost paid | (78,640) | (53,220) | ||
Net cash used in financing activities | (133,825) | (1,381,669) | ||
Net increase / (decrease) in cash and cash equivalents | 495,257 | (861,379) | ||
Cash and cash equivalents at the beginning of the period | 2,993,937 | 2,617,099 | ||
Effect of foreign exchange rate changes | (94,304) | (3,428) | ||
Cash and cash equivalents at the end of the period | 3,394,890 | 1,752,292 | ||
Non-cash transactions | ||||
Accruals for property, plant and equipment | 509,379 | 388,115 | ||
Advances to contractors transferred to property, plant and equipment | 8,300 | 8,641 | ||
Additions to right of use assets for land leases | 109,113 | 275,374 |
9
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
Notes to the interim condensed consolidated financial statements for the three-month period ended 31 March 2024
1. General information
Abu Dhabi National Oil Company for Distribution PJSC ("ADNOC Distribution" or the "Company"), formerly Abu Dhabi National Oil Company for Distribution, is a company incorporated by Law No. 13 of 1973 issued by His Highness the Acting Ruler of the Emirate of Abu Dhabi.
On 22 November 2017, Law No. 15 of 2017 (the "New Law of Establishment") was issued replacing Law No. 13 of 1973 in respect of the incorporation of Abu Dhabi National Oil Company for Distribution PJSC, a public joint stock company registered with the commercial register in Abu Dhabi under commercial licence number CN-1002757 issued by Abu Dhabi Department of Economic Development. The Articles of Association of the Company became effective as of 22 November 2017, at the same time that the New Law of Establishment was issued and became effective. The duration of the Company is 100 Gregorian years commencing on the date of issuance of the New Law of Establishment.
The head office of the Company and ADNOC Distribution Global Company L.L.C. ("ADGC LLC") are registered at P.O. Box 4188, Abu Dhabi, United Arab Emirates. The Company, ADGC LLC and its subsidiaries are collectively referred to as the "Group". The Company's shares are listed on the Abu Dhabi Securities Exchange.
The principal activities of the Group are the marketing of petroleum products, natural gas and ancillary products. The Group owns retail fuel stations in the United Arab Emirates (UAE), the Arab Republic of Egypt and the Kingdom of Saudi Arabia.
The Group is a marketer and distributor of fuels and lubricants to corporate and government customers throughout the UAE. In addition, the Group provides refueling and related services at eight airports in the UAE and provides a compressed natural gas distribution network in Abu Dhabi. The Group also exports its proprietary Voyager lubricants to distributors in various countries, across the GCC, Africa and Asia. The Group operates "ADNOC Oasis" convenience stores at a majority of its service stations, and leases retail and other space to tenants, such as quick service restaurants.
The Group also performs marketing activities and the distribution of petroleum products, motor oils, fuels and specialties in Egypt. In addition, it is also involved in constructing, owning and operating cafeterias through service stations in Egypt.
2. Application of new and revised International Financial Reporting Standards (IFRS)
The following new and revised IFRSs, which became effective for annual periods beginning on or after 1 January 2024, have been applied in these interim condensed consolidated financial statements:
-
Amendment to IFRS 16 - Leases on sale and leaseback
These amendments include requirements for sale and leaseback transactions in IFRS 16 to explain how an entity accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or rate are most likely to be impacted. - Amendment to IAS 1 - Non-current liabilities with covenants
These amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments also aim to improve information an entity provides related to liabilities subject to these conditions. - Amendment to IAS 7 and IFRS 7 - Supplier finance
These amendments require disclosures to enhance the transparency of supplier finance arrangements and their effects on an entity's liabilities, cash flows and exposure to liquidity risk. The disclosure requirements are the IASB's response to investors' concerns that some companies' supplier finance arrangements are not sufficiently visible, hindering investors' analysis.
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Abu Dhabi National Oil Company for Distribution PJSC published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 14:15:16 UTC.