Abu Dhabi: ADNOC Distribution, the UAE’s largest fuel and convenience retailer, which is listed on the Abu Dhabi Securities Exchange (ADX), reported that its EBITDA [earnings before interest, taxes, depreciation, and amortization] stood at Dh3.1 billion, with net profit of Dh 2.2 billion for the full year 2021.
For the fourth quarter of 2021, EBITDA was Dh802 million, while net profit stood at Dh571 million.
Resilient results
The company delivered a resilient financial performance throughout 2021, despite volatility caused by the COVID-19 pandemic. ADNOC Distribution has maintained a strong balance sheet as of 31 December 2021, and remains well-positioned to continue expanding both its domestic and international portfolio in line with its smart growth strategy.
“We maintain a robust balance sheet and expect to continue to deliver strong financial performance in the future. This is supported by our ongoing commitment to achieving the highest levels of efficiency, which has become a primary performance indicator across all operations and is now engraved in our company culture,” said Engineer Bader Saeed Al Lamki, Chief Executive Officer, ADNOC Distribution.
As of 31 December 2021, the company’s liquidity stood at Dh5 billion in the form of Dh2.3 billion in cash and cash equivalents and Dh2.8 billion in unutilized credit facilities.
ADNOC Distribution saw quarter-on-quarter growth in total fuel volumes in 2021, with an increase of 4 per cent in the fourth quarter compared to the third. In addition, ADNOC Distribution has continued to see incremental volumes from its Dubai stations, with a total of 31 stations now in operation in the emirate.
Shareholder gains
Following ADNOC Distribution’s inclusion in MSCI Emerging Markets Index in May 2021, the company was also included in the FTSE Emerging Markets (EM) Index in September 2021. The inclusion in these reputable indices helps to increase the attractiveness of ADNOC Distribution’s shares to potential international investors and thus further diversify the company’s investor base.
Company’s Board of Directors has proposed a cash dividend of Dh1.285 billion (10.285 fils per share), equivalent to $ 350 million, for the second half of 2021, which will be submitted to the Company’s shareholders for approval at the Annual General Assembly Meeting scheduled for 2022. Subject to shareholders’ approval, total dividend for fiscal year 2021 is expected to be Dh2.57 billion (20.57 fils per share).
This would translate to a 5 per cent annual dividend yield for 2021 (based on a share price of Dh4.12 as of 11th February 2022). The company paid half of the 2021 dividend in October of last year and expects to pay the final payment in April 2022, subject to shareholders’ approval.
“We strive to deliver strong operational and financial results by adopting world-class business operations and innovation measures to ensure running our operations in accordance with global best practices to deliver the highest value to our customers and highest returns to our investors,” added Al Lamki.
