Abu Dhabi’s ADNOC Distribution to join MSCI emerging markets index on May 27

Abu Dhabi-listed fuel retailer ADNOC Distribution announced on Wednesday that it will be included on the MSCI emerging markets index from May 27, 2021, it announced on Wednesday.

ADNOC Distribution was included in the MSCI EM Index after meeting the necessary requirements and will now be among nine UAE-listed companies to be part of the index.

The inclusion is expected to increase the attractiveness of ADNOC Distribution’s shares to potential international investors and thus further diversify the company’s investor base, a statement said.

ADNOC Distribution, which claims to be the UAE’s largest fuel and convenience retailer, recently announced a 57.9 per cent year-on-year increase in first-quarter net profit to reach Dhs631m, with retail fuel gross profit growing by 12.6 per cent year-on-year, led by higher margins.

The company, which is listed on the Abu Dhabi Securities Exchange (ADX) also announced that as of March 31, 2021, its liquidity was at Dhs5.1bn in the form of Dhs2.3bn in cash and cash equivalents and Dhs2.8bn in unutilised credit facility.

In September 2020, ADNOC also completed a private placement of 1.25 billion of ADNOC Distribution shares (valued at $1bn) to institutional investors, increasing the company’s free-floating equity to 20 per cent.

The move marked the largest block placement of a publicly listed GCC company.

In March, its shareholders also approved a 2020 dividend of Dhs2.57bn (20.57 fils per share, growth of 7.5 per cent compared to 2019)and it plans to maintain the same amount for 2021 and 2022.

Ahmed Al Shamsi, acting CEO of ADNOC Distribution said: “Being included on the MSCI emerging markets index is an important milestone in ADNOC Distribution’s thriving equity narrative.

“The inclusion is a testament to the company’s ability to grow and a reflection of its solid performance and resilience since IPO. We remain focused on delivering strong and stable returns as we continue to grow our international investor base.”

ADNOC Distribution which opened four new stations in the UAE in Q1 2021, said that it remains on track to meet its guidance to open a total of 70 to 80 new stations across the UAE and Saudi Arabia by year-end, including 30-35 in the Emirates.