ADNOC Logistics and Services plc (ADNOC L&S) (ADX symbol ADNOCLS / ISIN AEE01268A239) has announced that its Board of Directors has granted approval for the distribution of an interim cash dividend of $65M (AED 239M) for the second quarter of 2023, equivalent to 3.2 fils per share.
This interim dividend will be disbursed to shareholders who possess ADNOC L&S shares on the record date of 19th October 2023.
Expected 2H 2023 Dividend in Q2 2024
The dividend related to the second half of 2023 is expected to be paid in the second quarter of 2024. When the company was listed, it had indicated a second-half 2023 dividend of $130M (AED 477M).
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “The planned interim distribution of ADNOC L&S’ cash dividend underscores our strong performance in the first half of the year and is testament to our unwavering commitment to providing value to our shareholders. Our solid cash generation and net cash position give us ample resources to sustain our ongoing operational requirements and facilitate continued investment in long-term, value-enhancing growth opportunities. Looking ahead, we remain focused on delivering on our smart growth strategy which includes expanding our geographical reach, exploring new revenue streams, and unlocking additional value for our shareholders.”
Starting from the fiscal year 2024 and onward, ADNOC Logistics and Services (ADNOC L&S) anticipates progressively increasing the annual dividend per share by at least 5% per annum over the medium term, all the while regularly reviewing this policy in consideration of opportunities for value-enhancing growth.
Biannual Dividend Payments Planned
The company plans to distribute dividends semi-annually, with an initial payment for first-half results in the fourth quarter of that year, followed by a second payment based on second-half results in the second quarter of the subsequent calendar year.
ADNOC L&S is committed to implementing its strategic growth plan by diversifying into new business sectors, generating additional revenue streams, and strategically expanding its fleet.
In Q2 2023, the company secured a $975M Engineering, Procurement, and Construction (EPC) contract from ADNOC Offshore for the construction of an offshore artificial island.
Furthermore, ADNOC L&S has expanded its fleet by acquiring three newbuild, LNG dual-fuel Very Large Crude Carriers (VLCCs) and incorporating six self-propelled Jack Up Barges, of which two are chartered-in.