Adnoc okays Dh735m dividend payment
Sultan Ahmed Al Jaber said Adnoc is in a very good financial position. - Photo By Ryan Lim
Published: Sun 8 Apr 2018, 10:19 PM
Last updated: Mon 9 Apr 2018, 12:24 AM
The shareholders of Adnoc Distribution, the fuel and retail arm of Abu Dhabi National Oil Company, on Sunday approved a Dh735 million (5.88 fils per share) dividend payment.
The dividend was approved at the Aanoc's landmark first annual general meeting (AGM) following a report of the company's performance, which highlighted the significant achievements the company made in 2017 and comes after Adnoc Distribution's successful listing on the Abu Dhabi Securities Exchange (ADX) in December last year.
Officials said Adnoc's revenue increased in 2017 to Dh19.8 billion a rise of 11 percent compared to Dh17.7 billion in 2016 while the w profit for the year rose to Dh1.8 billion, a 14 percent increase compared to 2016. Dr Sultan Ahmed Al Jaber, Adnoc Distribution board Chairman, said: "I am confident that Adnoc is in a very good financial position now."
"The IPO and recently announced fourth quarter and 2017 full year results illustrate that Adnoc Distribution is in a strong financial position, with an enhanced level of profitability, healthy margins and significant opportunities for future growth."
He added: "The dividend payment that has been approved today is entirely in line with the dividend policy that we announced at the time of the IPO. The targeted dividend payout ratio we announced last November puts us near the top of major listed companies in the region, and we are determined to reward you, our shareholders, for believing and trusting in us."
According to Al Jaber, the lead up to their IPO, Adnoc Distribution's management team outlined a clear growth strategy, centred on offering more choice, service and convenience for fuel and non-fuel customers while also being more cost efficient.
"I am proud to say that we are ahead of schedule and we are delivering on the commitments that we made," he said.
"I am happy that we are offering our customers the best services that satisfy their needs Adnoc Distribution must continue to be more customer-centric."
Dr Al Jaber added: "If we maintain a sharp focus on our customers, I am confident that our financial performance will improve even further. At the same time, the company's management must continue driving ahead with its growth strategy while also changing the company's culture so that every employee is more performance driven and even more customer focused."
As a 90 per cent shareholder, Adnoc is fully committed to the success of Adnoc Distribution and we will continue to leverage all resources at our disposal to ensure its continued success and growth."
He said that Adnoc has expanded its services to Dubai and Saudi Arabia and that this will increase the company's revenue.
Commenting on Adnoc Distribution's growth strategy, acting CEO Saeed Mubarak Al Rashdi said the company's management is focused on continuing to deliver against its commitments.
"Our growth strategy is very clear and we are ahead of schedule. By providing more choice to our fuel customers through ADNOC Flex, by improving our convenience store offering, partly through agreements with famous brands like Géant, and finally by being more cost efficient I am confident that we will continue to see revenue and margin growth," Al Rashdi said.
"In addition to our growth strategy, we are rapidly transforming our internal structures, processes and culture to ensure that we harness all of our employees to drive high performance and sustainable growth in the future."
During the meeting, Adnoc Distribution shareholders approved the report of the company's auditors for the financial year ending December 31, 2017, as well as the financial statements for the same period. The meeting also re-appointed Deloitte & Touche(M.E.) as Adnoc Distribution Auditors. - email@example.com