ADNOC Distribution Announces Interim Dividend for 2023: A Testament to Growth and Commitment to Shareholders
Abu Dhabi, UAE – September 26, 2023: ADNOC Distribution (ISIN: AEA006101017) (Symbol: ADNOCDIST), the UAE’s leading fuel and convenience retailer listed on the Abu Dhabi Securities Exchange (ADX), has declared an interim dividend of $350 million (AED1.285 billion) for the first half of 2023. This announcement reflects the company’s commitment to providing attractive returns to its shareholders while reinforcing its position as a responsible corporate entity.
The interim dividend, equivalent to 10.285 fils per share, marks the first part of the anticipated full-year 2023 dividend payment, set at a minimum of $700 million (AED2.57 billion), or 20.57 fils per share. Shareholders who wish to qualify for the interim dividend must purchase shares by October 3, 2023.
Underlining its dedication to sustainable growth and value creation, ADNOC Distribution’s dividend policy for 2024 and beyond aims to distribute a minimum of 75% of distributable profits. This strategic approach reflects the company’s robust financial position and its commitment to delivering sustainable shareholder returns.
Since its initial public offering (IPO) in 2017, ADNOC Distribution has consistently provided attractive returns to its shareholders. With a total dividend payout of $3.7 billion (AED13.6 billion) since its IPO, including the interim dividend for the first half of 2023, the company has demonstrated a strong track record of delivering enhanced payback to its investors.
Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, expressed the company’s commitment to shareholder value and sustainable growth. He stated, “ADNOC Distribution continues to offer an attractive value proposition to its shareholders, underpinned by our commitment to delivering on our smart growth strategy.” Al Lamki emphasized the importance of transforming the business into a customer-centric destination while maximizing efficiency to unlock additional value.
In its financial results for the first half of 2023, ADNOC Distribution reported a 9% year-on-year increase in underlying EBITDA, reaching $427 million (AED1.57 billion). The company’s net profit, excluding inventory movements, saw a 2% year-on-year increase to $280 million (AED1.03 billion), driven by higher fuel volumes and efficiency improvement initiatives.
Maintaining a strong balance sheet, ADNOC Distribution recorded a net debt to EBITDA ratio of 1.13x and liquidity of $1.27 billion (AED4.7 billion) at the end of the first half of 2023. With a robust cash position of $522 million (AED1.9 billion) and retained earnings of $475 million (AED1.7 billion), the company is well-positioned to support its growth objectives and deliver sustainable value to shareholders.
Looking ahead, ADNOC Distribution remains focused on expanding its footprint and exploring new revenue streams, including electric vehicle (EV) charging infrastructure and sustainability-driven initiatives. The company is on track to achieve its growth targets for 2023, aiming to add 25 to 35 new service stations to its network while expanding its lubricants business, ADNOC VOYAGER, to 32 global markets.
In conclusion, ADNOC Distribution’s announcement of an interim dividend for 2023 underscores its commitment to shareholder returns and sustainable growth. As the company continues to navigate evolving market dynamics and capitalize on emerging opportunities, it remains dedicated to delivering long-term value to its shareholders and stakeholders alike.
