Dubai: The retail arm of Abu Dhabi’s ADNOC secured net profits of Dh631 million for the first three months of 2021, with revenues streaming in at Dh4.28 billion.
ADNOC Distribution’s liquidity was at Dh5.1 billion, split into Dh2.3 billion in cash and cash equivalents and Dh2.8 billion in unutilized credit facility. In addition to expanding in the UAE, the company is “well positioned” to tap international growth opportunities, particularly in Saudi Arabia, building on three agreements signed in 2020 and this year to acquire a total of 35 stations, which will bring its total network in the country to 37 stations.
"We have progressed our smart growth strategy in the first quarter and have ambitious targets for 2021, including the opening of 70 to 80 new stations across domestic and international markets," said Ahmed Al Shamsi, Acting CEO. "We remain committed to providing strong dividend visibility.”
The retailer will add a further "70 to 80 new stations" across the UAE and Saudi Arabia by year end. Last year, it added a further 64 new stations. "We have continued to build on our success in 2020, to record a strong financial performance," said Al Shamsi. "This has provided the company with ample liquidity to pursue future growth opportunities, be they organic or inorganic in domestic and international markets.”
A further Dh2.57 billion dividend for 2021 and a minimum of Dh2.57 billion dividend for 2022 (compared to minimum 75% of distributable profits as per previous policy), will be paid out until April 2023.
The dividend policy for the years thereafter remains unchanged at a dividend equal to at least 75% of distributable profits.