September 30 is record date for ADNOC Distribution shareholders to get H1-2024 dividend

Dubai: September 30 is the record date for shareholders in ADNOC Distribution to get the 10.28 fils a share as part of a Dh1.28 billion interim dividend for H1-2024.

The ADNOC entity will make the second payout for its 2024 performance in April 2025. ADNOC Distribution’s five-year dividend policy sets an annual shareholder payment of $700 million - or a minimum of 75% of net profits - whichever is higher until 2028. (Record date is when investors should hold the stock to be eligible for dividend.)

In the first half of 2024, the company reported a 16% year-on-year increase in EBITDA to Dh1.89 billion, and a 7.7% spike in net profit to Dh1.17 billion. This was helped by higher fuel volumes for the retailer, increased contributions from its operations in Saudi Arabia and Egypt, as well as growth in the non-fuel retail side from its convenience stores.

"The dividend policy provides long-term visibility on expected shareholder returns and potential upside from future earnings growth, reinforcing ADNOC Distribution’s commitment to consistent shareholder value creation," said a statement.

The fuel retailer operates more than 500 locations in the UAE and has a growing network in Saudi Arabia and Egypt. It is also pushing hard to offer services that will come in handy down the road, including operating a network of EV charging points.

Since the 2017 IPO, ADNOC Distribution has paid Dh16.2 billion in dividends (including the H1 2024 pay). "With a record EBITDA of Dh3.68 billion) in 2023, the company is on track to deliver on its growth commitments and is well-positioned for its next phase of strategic and accelerated growth," said the statement.

According to the CEO Bader Saeed Al Lamki, “Our new strategy enables us to capture new market positions both at home and abroad, reinforcing our leadership and creating long-term value to sustain shareholder returns."

‘150 by end 2024’

On the EV charging points, ‘We already have 112 locations and should finish 2024 with 150,” said Al Lamki. “We are focused on deploying fast and super-fast charging hubs in the UAE, and using our app, EV owners can prepare well in advance before even reaching the location. They can get notifications whether that particular EV charge is available or not, etc.

“And through a one-time setting, they can even get the charger to ‘recognise’ the car. All that needs doing is for the nozzle to be lifted and insert the charger.”

There will be a lot more of such EV charging points under ADNOC Distribution, as part of a joint venture with Abu Dhabi utility firm Taqa. The target - reach 500 points in 5 years.

'67% market share'

In the UAE, where the company has 530 fueling stations, Al Lamki said wherever possibilities show up, the company will be ready. “The country is growing and we as a company will take our services closer to customers,” he added. “But we are not about creating a fueling or charging station – what ADNOC Distribution is about is creating destinations, where you can get our services and interact with Tier 1 brands in retail and F&B.”