ADNOC Distribution, the UAE’s largest fuel and convenience retailer, has delivered a sense of confidence and positive outlook to shareholders by approving the second and final dividend of $349.7 million (AED 1.285 billion) (10.285 fils per share) for the year ended December 2021, at its annual General Assembly meeting.
This dividend payment comes on top of an interim paid in October 2021, dividend payment for the first half of 2021, resulting in a full-year dividend of $699.5 million (20.57 fils per share). This is a clear indication not only of the ADNOC Distribution’s approved dividend policy, but also of the company’s ability to provide and maintain strong value to shareholders.
After expanding its network to 462 stations in the UAE by 2021, its international expansion has been a major focus throughout the past year, enabling 40 stations in the main market in Saudi Arabia. The company has expanded its lubricants business, ADNOC Voyager, to a total of 19 countries on three continents.
ADNOC Distribution’s resilient growth and solid outlook, have enabled it to have a progressive dividend policy for investors. Its dividend policy sets a dividend of a minimum of $699.5 million for 2022, providing visible payback to shareholders until April 2023. The dividend policy for the years there after sets a dividend equal to at least 75 percent 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), Chairman of ADNOC Distribution, H.E. Dr. Sultan Ahmed Al Jaber, 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.”
ADNOC Distribution reported strong financial results in 2021, in line with analyst expectations, with a net profit of 2.2 billion, a turnover of $843.82 million, pre-tax, depreciation and amortization (EBITDA) revenue by 2021. The end of 2021 saw a recovery in fuel prices and double-digit growth in the strategic Dubai market, which supports this year’s outstanding performance as the country continues to recover from the restrictions imposed by the COVID-19 pandemic.
H.E. Dr. Sultan Al Jaber further added that “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 Chairman added.
Meanwhile, Eng. Bader Saeed Al Lamki, CEO, ADNOC Distribution, remarked that “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.” Mr. Al Lamki added.