ENOC Group's sustainable growth strategy drives unprecedented profitability in FY 2023

ENOC Group, the leading integrated global energy player, has reported its highest ever profitability in FY 2023. This exceptional performance underscores the success of the new long-term growth strategy aimed at delivering world-class sustainable and integrated energy solutions further reinforcing the Group’s position as an innovative and forward-looking energy player.

The growth strategy, launched early last year and founded on five strategic pillars, aims to meet the growing demands for reliable, secure, and sustainable energy, locally and internationally, through a continued focus on operational efficiencies, collaboration, and implementation of digital technologies.

His Excellency Saif Humaid Al Falasi, Group CEO, ENOC, said: “Anchored on the action-oriented goals of our five-pillar growth strategy, ENOC Group is steadfastly executing its long-term sustainable vision as it leads the transition to a lower emissions and green energy future. The Group’s exceptional business performance in 2023 demonstrates its commitment to innovation and reflects our continued momentum towards driving sustainable value in the energy sector. In 2024 and beyond, we will continue to build on the key goals of this strategy to meet the expectations of our stakeholders, and in line with the broader strategic ambitions of Dubai and the UAE.”

ENOC Group's profitability soared across the value chain in 2023, as ENOC remained committed to enhancing competitiveness and creating long-term value for the economy under the goals of the newly implemented strategy’s first pillar of ‘Proactive Improvement’.

In 2023, the Group has successfully completed a significant milestone in its technological transformation by implementing SAP over a five-year period. This strategic move was designed to leverage the latest technological advancements, aiming to achieve process excellence and enhance operational efficiencies. Following the successful SAP rollout, the Group initiated a comprehensive digital strategy, signalling the beginning of a continuous digital journey. This strategy is not just an extension of the SAP implementation but a broad, ongoing commitment to adapt and evolve with emerging technologies and market demands. By doing so, the Group ensures it remains competitive and well-positioned to capitalise on future technological innovations.

Through the pillar of ‘Asset Optimisation’, ENOC Group maximised capacity utilisation across processing units and terminals and capitalised on market opportunities. Terminals capacity utilisation reached a five-year high of 98% in FY2023, reflecting strong storage demand. The Group expanded its retail station network by commissioning 14 additional sites, including a successful expansion into the Abu Dhabi market with 4 stations in line with its ambitious expansion plans for the UAE capital. Additionally, ENOC Link, the Group’s pioneering fuel delivery service, opened 7 sites last year.

Having consolidated its strengths in addressing improvement areas and meeting the needs of customers for over a decade, ENOC Group further demonstrated its commitment to the ‘Think Customer’ pillar by achieving an all-time high Customer Satisfaction (C-SAT) score of 86% in 2023. Last year, the Group introduced several customer-focused initiatives to drive retail expansion, including new fuelling formats tailored to catchment areas, enhanced payment systems, and infrastructure upgrades at retail stations to service more customers, especially during peak hours.

As part of its ‘Integrated Value Chain & Growth’ pillar, the Group continued to explore opportunities to further optimise supply-demand balance and enhance its value chain to grow the business beyond UAE.

In 2023, ENOC also made significant progress on its sustainable vision to meet the clean energy demands of the future under the fifth pillar of ‘Diversified Energy Solutions’. Aligning with global sustainability trends and the UAE Energy Strategy 2050, ENOC contributed to reducing its carbon footprint through several initiatives focused on meeting clean energy demands. This included the testing of Sustainable Aviation Fuel (SAF) with Emirates Airlines and partnership agreements with local and international entities to convert municipal solid waste to SAF. The Group is also exploring Hydrogen as an alternate fuel and has commissioned the first Green Hydrogen dual pressure station that was showcased during COP28 in Dubai last year.

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