Abu Dhabi’s ADNOC Distribution approves $350m interim cash dividend for H1 2022

Abu Dhabi’s fuel and convenience retailer ADNOC Distribution announced that its board of directors has approved an interim dividend payment of Dhs1.285bn (10.285 fils per share) to shareholders for the first six months of 2022.

Thw $350m is the first payment of what is expected to be a full-year 2022 dividend payment of minimum Dhs2.57bn (20.57 fils per share), in line with the company’s dividend policy. The second and final dividend for 2022 expected to be paid in April 2023, subject to the board of directors’ recommendation and shareholders’ approval.

The 2022 full-year dividend would offer a 4.9 per cent annual dividend yield (based on a share price of Dhs4.21 as of September 27, 2022).

The company’s dividend policy for the years thereafter sets a dividend equal to at least 75 per cent of distributable profits, it said in a statement.

Since the company’s IPO in 2017, it has paid dividends worth Dhs1.47bn for 2018, Dhs2.39bn for 2019, Dhs2.57bn for 2020, and Dhs2.57bn for 2021.

In recent years, the company has taken several strides for expanding its base. Over the first half of 2022, ADNOC Distribution opened 12 new stations in the UAE, of which four are in Dubai, taking its domestic network to 472 as of June 30, 2022. In Saudi Arabia, the company added 26 new stations over the same period, taking its network in the kingdom to 66.

The company expanded its product offering with the launch of the ADNOC Voyager Green Series, which offered customers a 100 per cent plant-based lubricant range for both petrol and diesel engines.

Read: UAE’s ADNOC Distribution launches range of 100% plant-based engine oils

ADNOC Distribution also announced the transaction to acquire a 50 per cent stake in TotalEnergies for approximately Dhs683m.

Read: ADNOC Distribution acquires 50% stake in TotalEnergies Marketing Egypt

The acquisition is expected to be completed in Q1 2023 pending satisfaction of certain conditions, including customary regulatory approvals.

Bader Saeed Al Lamki, CEO of ADNOC Distribution, said, “The attractive value proposition that we offer is backed by our strong earnings, stable and predictable cash flows and dividend policy that reaffirm our ongoing commitment to the shareholders.”

ADNOC Distribution reported EBITDA of Dhs1.99bn and net profit worth Dhs1.56bn for H1 2022.

Read: ADNOC Distribution reports net profit of Dhs1.56bn in H1 2022

In 2021, ADNOC Distribution was included in the MSCI Emerging Markets Index.