A fast expanding network and favourable energy prices propel ADNOC Distribution's first-half 2022 numbers. Image Credit: Supplied

Dubai: ADNOC Distribution, the UAE fuel services retailer, will pay Dh1.28 billion as interim dividend for H1-2022, which works out to 10.28 fils a share. The final day for purchasing the company's stock to be eligibile for this payment is October 5.

For full-year 2022, the company is committing a 'minimum' payout of Dh2.57 billion, as ADNOC's listed entities continue to reward shareholders for their impressive financials and the bullish prospects for the energy sector.

The 2022 dividend would represent a 4.9 per cent annual dividend yield (based on a share price of Dh4.21 as of September 27). The dividend policy thereafter will be 'equal to at least 75 per cent' of distributable profits. "The policy recognizes the company’s strong financial position and cashflow generation ability going forward, which will support growth opportunities and sustain attractive shareholder returns," said a statement.

Since the 2017 IPO, ADNOC Distribution has been scaling up the 'payback to shareholders', with a dividend track record of Dh1.47 billion for 2018, Dh2.39 billion for 2019, Dh2.57 billion for 2020 and 2021, 'supported by robust cash generation and balance-sheet strength'.

Another ADNOC entity, Borouge (which is a joint venture with Borealis) also will payout Dh1.2 billion in early October.

More locations in Dubai, Saudi Arabia
In the first-half of 2022, ADNOC Distribution opened 12 stations in the UAE, of which four were in Dubai. This took its UAE network to 472, including 25 in Dubai. In Saudi Arabia, 26 new stations were added, taking its network to 66.

The target is to achieve 60-80 new sites in 2022.