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This is the first of a dividend of at least AED 2.57 billion expected to be paid throughout 2022
ADNOC Distribution, the largest fuel and convenience retailer in the UAE, today announced the approval to pay shareholders an interim dividend of AED 1.285 billion (Phil 1,0285 per share), equivalent to US$350 million, for the first six months of 2022.
According to the company’s dividend policy, this is the first expected dividend payment for the full year 2022, with a minimum of AED 2.57 billion (Phil 20.57 per share), the second and final dividend for 2022 is expected to be in 2023 Payment is completed in April and is subject to Board recommendation and shareholder approval.
The full year 2022 dividend will provide an annual dividend yield of 4.9% (based on the share price of AED4.21 as at 27 September 2022).
The company’s dividend policy for the following years stipulated that a dividend equal to at least 75% of distributable profits. The policy recognizes the company’s future strong financial position and ability to generate cash flow, which will support growth opportunities and maintain attractive shareholder returns.
Since its IPO in 2017, the company has boosted returns to shareholders through its progressive dividend policy, recording dividends of AED1.47 billion in 2018, AED2.39 billion in 2019 and AED2.57 billion in 2020 Ram, and AED 2.57 to reach $1 billion in 2021, supported by strong cash generation and balance sheet strength.
In recent years, the company has taken steps to strengthen its position as the leading cost-competitive fuel and non-fuel retailer, accelerating its smart growth strategy while enhancing the customer experience. In the first half of 2022, ADNOC Distribution opened 12 new sites in the UAE, 4 of which are in Dubai, bringing its domestic network to 472 as of 30 June 2022 (Dubai: 35 sites). In the Kingdom of Saudi Arabia, the company added 26 new sites during the same period, bringing its network in the Kingdom to 66. The company’s total network is 538 sites (as of June 30, 2022) and remains on track to achieve its target of 60-80 new sites in 2022.
The company also increased exports of its lubricants business ADNOC VOYAGER in the first half of the year, expanding its network to 21 global markets. ADNOC Distribution also launched ADNOC VOYAGER green range, a range of alternative 100% vegetable based lubricants for gasoline and diesel engines.
ADNOC Distribution also recently announced a landmark transaction to acquire a 50% stake in TotalEnergies Marketing Egypt, one of Egypt’s four largest fuel retail operators. This acquisition is in line with ADNOC Distribution’s vision to establish itself as a regional fuel distribution leader. The acquisition is expected to close in the first quarter of 2023, subject to certain conditions, including customary regulatory approvals.
Britain. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “ADNOC Distribution’s resilience and unwavering focus on smart growth allow us to confidently deliver on our strategic priorities while ensuring attractive capital returns for our shareholders.”
“The attractive value proposition we offer is supported by our strong earnings, stable and predictable cash flow and dividend policies, which reaffirm our ongoing commitment to shareholders. By leveraging our capital deployment capabilities, we Our goal is to continue to expand our reach and bring our unique brand of products, services and customer experience to an expanding customer base in a wider geographic area.”
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ADNOC Distribution continues to maintain a strong balance sheet and strong liquidity with cash and cash equivalents (including term deposits) of AED2.8 billion and an unused revolving credit facility of AED2.8 billion as at 30 June 2022 , with retained earnings of AED 2. 0 billion, net debt to EBITDA 0.77 times. In the first half of 2022, the company delivered strong performance and accelerated execution momentum, with EBITDA of AED1.99 billion, net profit of AED1.56 billion and free cash flow of AED1.96 billion.
ADNOC Distribution was added to the MSCI Emerging Markets Index in 2021, followed by an increase in the weighting of the index in May 2022. The company is also listed on the new blue chip FTSE ADX 15 (FADX15) index as a partnership between FTSE Russell and the Abu Dhabi Stock Exchange (ADX). This inclusion provides ADNOC Distribution shares with further international exposure, increasing their appeal and helping to diversify the company’s investor base.
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