Adnoc Distribution shareholders approve Dh1.28b dividend for H2 2021

Company reaffirms its commitment to maintaining its growth momentum, with plan to deliver 60-80 new stations in 2022, including 20-30 in the UAE and 40-50 in international markets.

Adnoc Distribution, the UAE’s largest fuel and convenience retailer, delivered a confident, positive outlook for shareholders at its annual general assembly meeting. Shareholders approved a consistent and fully maintained second and final dividend payment of Dh1.285 billion (10.285 fils per share) for the year ended December 31, 2021.

This dividend payment comes on top of an interim Dh1.285 billion (10.285 fils per share) dividend payment for the first half of 2021, which was paid in October 2021, resulting in a full-year dividend of Dh2.57 billion (20.57 fils per share). This is not only consistent with Adnoc Distribution’s approved dividend policy but a clear indicator of the company’s ability to provide and maintain strong value for shareholders.

Having increased its network in the UAE to 462 stations in 2021, its international expansion was a prominent focus throughout last year, with the operationalising of 40 stations in the key market of Saudi Arabia. The company also increased exports of its lubricants business, Adnoc Voyager, to a total of 19 countries across three continents.

Adnoc Distribution’s resilient growth and solid outlook, has enabled the progressive dividend policy for investors. Its dividend policy sets a dividend of minimum Dh 2.57 billion for 2022, providing visible payback to shareholders until April 2023. The dividend policy for the years thereafter sets a dividend equal to at least 75 per cent of distributable profits. Adnoc Distribution remains confident and steadfast in the delivery of its strategic commitments and sustainable returns for its shareholders.

Speaking at the General Assembly meeting (AGM), Dr Sultan Ahmed Al Jaber, chairman of Adnoc Distribution, welcomed shareholders to the AGM and reaffirmed Adnoc Distribution’s commitment to maintaining its growth momentum in 2022 and beyond.

“Adnoc Distribution is well positioned to grow its earnings amid economic recovery and driven by our expansion in domestic and international markets, while continuing to explore new opportunities to accelerate growth. The company remains committed to pursuing its expansion plans, locally and internationally. In 2022, are planning for 60 to 80 new stations, including 20 to 30 in the UAE and 40 to 50 new stations in international markets, including Saudi Arabia.”

Furthermore, the company’s continued attractiveness in both local and international investor markets was highlighted through its inclusion in both the MSCI and FTSE Emerging Market Indices in 2021.

Al Jaber added: “Our business landscape is fundamentally shifting, and Adnoc Distribution is leading this fuel retail transformation. We understand that consumers want greater convenience, and exceptional service, brought through digital innovation and a commitment to delivering balanced economic growth with environmental responsibility.We are constantly innovating to further reduce the carbon intensity of our operations and provide a diversified energy mix for our customers that meets the demands of today, while energizing the way for tomorrow.”

Adnoc Distribution recorded resilient financial results in 2021, in line with analyst expectations with a net profit of 2.2 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) of Dh 3.1 billion. The end of 2021 saw a recovery in fuel volumes, as well as double-digit growth in volume in the strategic Dubai market, supporting a solid performance for the year as the country continued to recover from the restrictions imposed by the Covid-19 pandemic.

Eng Bader Saeed Al Lamki, CEO, Adnoc Distribution, said: “In 2021, we delivered sound and strategic growth. Our focus on continued expansion in the UAE was complimented by the development of our business in international markets, namely Saudi Arabia. I am confident in the progress we have, and continue, to make. We drive forward with smart, sustainable growth, and the spirit of innovation that propels our vision to deliver quality, consistently. I am secure in our continued focus on diverse national and international growth. That together with an unwavering commitment to delivering quality, innovative and sustainable mobility products and solutions will see us meet and exceed our growth objectives for many years to come.” — business@khaleejtimes.com

• Dubai