This is the first installment of the total dividends for the year 2023, which is expected to reach at least 2.57 billion dirhams (about 700 million dollars), equivalent to 20.57 fils per share, according to the company’s dividend policy.
The second and final part of the 2023 dividend is expected to be paid in April 2024, in accordance with the recommendations of the Board of Directors and approval of shareholders.
The 2023 dividend provides an annual return of 5.4 percent (based on a price of AED 3.80 per share as of September 25, 2023).
The company’s dividend policy for 2024 and subsequent years stipulates the distribution of cash dividends of no less than 75 percent of distributable profits.
The dividend policy reflects the company’s strong financial position, confidence in its growth prospects and its ability to achieve strong cash flows, which will enhance growth opportunities and the company’s ability to achieve stable cash returns for its shareholders.
Since the initial public offering in 2017, ADNOC Distribution has achieved rewarding returns for shareholders through its progressive dividend policy, which since the initial public offering has witnessed the distribution of total profits amounting to 13.6 billion dirhams ($3.7 billion), including profits for the first half of 2023.
In its financial results for the first half of 2023, ADNOC Distribution announced an increase in basic profits before deducting interest, tax, depreciation and amortization amounting to 1.57 billion dirhams ($427 million), an increase of 9 percent on an annual basis.
The results of the first half of 2023 also witnessed a 2 percent year-on-year increase in net profits, excluding inventory movement, to reach 1.03 billion dirhams ($280 million), supported by higher fuel sales and initiatives to improve operational efficiency in all sectors of the company.
The company maintained a solid balance sheet, with the ratio of debt to earnings before interest, tax, depreciation and amortization reaching about 1.13 times at the end of the first half of the year, and it also maintained a strong financial position with liquidity amounting to 4.7 billion dirhams ($1.27 billion) at the end of the period. The company also recorded retained earnings of 1.7 billion dirhams ($475 million), with an ample cash position of 1.9 billion dirhams ($522 million).
In recent years, ADNOC Distribution has accelerated the implementation of its growth strategy. During the past five years, the company opened about 200 new service stations in the UAE and Saudi Arabia, bringing the number of its network stations in the GCC region to 575 service stations, including 64 stations. Service in Saudi Arabia.
The company has also made significant progress in its international expansion, as it acquired a 50 percent stake in Total Energy Marketing Egypt, adding 240 service stations to its station portfolio.
ADNOC Distribution continues to explore growth opportunities and new revenue sources offered by the transition in the energy sector, as the company focuses on new mobility solutions such as electric vehicle charging services and other sustainability initiatives. In its continuous endeavor to future-proof its business, the company focuses on growth and sustainability based on its main goal of creating long-term sustainable value for its shareholders.
The company is also moving forward with its growth plans, and remains in a strong position that allows it to achieve its expansion plans for 2023, which aim to open between 25 to 35 new service stations.
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