Interview: UAE's biggest fuel retailer still has plenty left in the tank - deputy CEO of ADNOC Distribution | ZAWYA MENA Edition:
In some ways, it was hardly surprising that the initial public offering of a 10 percent stake in Abu Dhabi National Oil Company’s fuel distribution arm this time last year was more than 20-times oversubscribed.
The firm enjoys a 67 percent share of the fuel retail market in the United Arab Emirates. It has a monopoly on fuel stations in the emirates of Abu Dhabi and Sharjah, and owns 90 percent of the fuel stations in northern Emirates (outside of Dubai).
Yet buying the company’s shares was not without its risks for investors. This was still a division of a state-owned enterprise which was retaining 90 percent of the shares (albeit one in the midst of its own transformation), and, according to its deputy CEO, John Carey, it had been loss-making prior to August 2015, when a removal of fuel subsidies across the country shook up the sector.
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