Adnoc Distribution
New locations and expansion into Saudi Arabia is fuelling ADNOC Distribution's prospects. Image Credit: WAM

Dubai: Shareholders of ADNOC Distribution will get Dh1.285 billion payout – at 10.285 fils a share – for the second-half of 2020. The full year cash bonanza will total Dh2.57 billion, and an increase of 7.5 per cent on 2019.

The company is promising a “minimum” of Dh2.57 billion as dividend for 2022. Last year, net profit grew by 9.7 per cent to Dh2.4 billion (Dh0.195 per share).

“The dividend policy for the years thereafter remains unchanged - equal to at least 75 per cent of distributable profits,” said ADNOC Distribution in a statement. “The approved dividend policy amendment recognizes the company’s strong financial position at the end of 2020 and confidence in its growth prospects and cash-flow generation ability going forward.

“Despite current market conditions, ADNOC Distribution remains confident and steadfast in the delivery of its strategic commitments and sustainable returns for its shareholders.”

Last year, institutional investors were given access to 1.25 billion shares, valued at $1 billion - it was the largest block placement of a public-listed GCC company and "leverages significant investor demand for ADNOC Distribution shares".

Doubling of free float to 20 per cent also marked the broadening of the shareholder base, "allowing for greater liquidity of its shares on the Abu Dhabi Securities Exchange".

Pump online prospects
After the COVID1-9 breakout, ADNOC Distribution introduced online delivery services, with door-to-door delivery from more than 100 ADNOC Oasis stores available through Talabat and Carriage. In addition, it expanded the existing fuel and LPG delivery services.

More to come

Another 70-60 fuel and convenience store locations will open this year, compared to the 64 in 2020, with 20 of these being in Dubai alone. “We continue to lead the UAE’s fuel and convenience market, supported by our stable margins on retail fuel, the largest convenience store network in the country, and a brand name strongly associated with national pride,” said Dr. Sultan Ahmed Al Jaber, Chairman of ADNOC Distribution.

“Today, ADNOC Distribution shares offer a unique value proposition to shareholders and investors with a combination of low exposure to oil price volatility, predictable and healthy cash flows, strong growth potential and an attractive dividend policy that offers high payback visibility.”