ABU DHABI, ADNOC Distribution shareholders have approved a consistent and fully maintained second and final dividend payment of AED1.285 billion (10.285 fils per share) for the year ended 31st December 2021, during the Annual General Assembly Meeting.
This dividend payment comes on top of an interim AED1.285 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 AED2.57 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 19 countries across three continents.
ADNOC Distribution’s resilient growth and solid outlook have enabled investors’ progressive dividend policy. Its dividend policy sets a dividend of a minimum AED2.57 billion for 2022, providing visible payback to shareholders until April 2023. The dividend policy for the years after that sets a dividend equal to at least 75 percent of distributable profits.
Speaking at the General Assembly Meeting, Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of ADNOC Distribution, 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 exploring new opportunities to accelerate growth. The company remains committed to pursuing its expansion plans, locally and internationally. In 2022, we 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.”
The company’s continued attractiveness in local and international investor markets was highlighted by its inclusion in the MSCI and FTSE Emerging Market Indices in 2021.
ADNOC Distribution recorded resilient financial results in 2021, in line with analyst expectations with a net profit of AED2.2 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) of AED3.1 billion.
The end of 2021 saw a recovery in fuel volumes and 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.
Dr. Al Jaber added, “Our business landscape is fundamentally shifting, and ADNOC Distribution is leading this retail fuel 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 energising the way for tomorrow.”
Bader Saeed Al Lamki, CEO of ADNOC Distribution, said, “In 2021, we delivered sound and strategic growth. Our focus on continued expansion in the UAE was complimented by developing our business in international markets, namely Saudi Arabia. I am confident in the progress we have made and continue to make. We drive forward with smart, sustainable growth and the spirit of innovation that propels our vision to deliver quality consistently.
Source: Emirates News Agency