The Abu Dhabi fuel retailer, ADNOC Distribution has announced that they will provide dividend payments minimum of Dh2.57 billion for the year 2022, and 75 percent of the distributable profits from 2023.
For last year, the dividend came to Dh2.57 billion (at 20.57 fils a share), paid out in two tranches. “This is not only consistent with ADNOC Distribution’s approved dividend policy but a clear indicator of the company’s ability to provide and maintain strong value for shareholders,” it said in a statement.
The company is on track to deliver a minimum of $1 billion in EBITDA (earnings before interest, tax, depreciation, and amortization) by 2023.
“ADNOC Distribution is well-positioned to grow its earnings amid economic recovery and driven by our expansion in domestic and international markets while continuing to explore new opportunities to accelerate growth,” said Dr. Sultan Ahmed Al Jaber, Chairman of ADNOC Distribution as well as of the parent company ADNOC. “The company remains committed to pursuing its expansion plans, locally and internationally.”
Apart from within the UAE, the company will raise its international presence to 50 fuel stations, including those in Saudi Arabia.
FULL-SCALE RECOVERY
In 2021, ADNOC Distribution came up with ‘resilient’ results and which were in line with analyst expectations. Net profit came to Dh2.2 billion and the EBITDA tally was Dh3.1 billion.
The company stated that the announcement of this dividend payment is owing to the results at the end of 2021. The end of last year witnessed fuel volumes recovery as well as double-digit growth in volume in the Dubai market. Furthermore, recovery from the COVID-19 pandemic restrictions gave support to a solid economic performance for the year.