Abu Dhabi: Adnoc Distribution raised its dividend payout to Dh2.57 billion, an increase of 7.5 per cent over last year. This was confirmed at the annual general assembly, held virtually this year, on Tuesday.
Shareholders also approved a second and final dividend payment of Dh1.194 billion for 2019. This matches the payment made in October, bringing the full year dividend to Dh2.39 billion.
“The changes to the dividend policy approved today demonstrates our commitment to our shareholders and our confidence in the company’s future prospects and ability to deliver sustainable growth,” said Dr. Sultan Ahmad Al Jaber, Chairman of Adnoc Distribution.
“Adnoc Distribution shares offers a unique value proposition with a combination of low exposure to oil price volatility, predictable and healthy cashflows, strong growth potential and an attractive dividend policy - 7.6 per cent at a share price of Dh2.70 as on March 31 - that offers high income visibility.”
The general assembly meeting also approved amendments to its dividend policy for 2021, setting a Dh2.57 billion dividend for that year and a dividend equal to at least 75 per cent of distributable profits from 2020 onwards.
Net profit up
Adnoc Distribution also announced an increase in net profit to Dh2.2 billion for 2019, growing 4.2 per cent over 2018, and an EBITDA (earnings before interest, tax, depreciation and amortisation) of Dh2.72 billion, up by 7.2 per cent.
“Delivering on our international expansion remains integral to our ambitious smart growth strategy,” said Al Jaber. “We continue to assess potential opportunities to achieve disciplined growth and operational success, while targeting the highest return on investment.”