Adnoc Distribution, the UAE’s largest fuel and convenience retailer, has announced an interim dividend after reporting strong profits in the first six months of the year.
The company’s shareholders approved a second-half dividend payment of Dh1.28 billion ($350 million), the company said in a statement to Abu Dhabi Securities Exchange (ADX), where its shares are traded.
This is the first payment of the full-year 2022 dividend payment of a minimum of Dh2.57bn (20.57 fils per share), in line with the company’s dividend policy, with the second and final dividend for 2022 expected to be paid in April 2023.
Adnoc Distribution said it will continue its policy of paying a minimum dividend of Dh2.57bn for 2022 and a yearly payout equal to at least 75 per cent of distributable profits from 2023 onwards.
The 2022 full-year dividend would offer a 4.9 per cent annual dividend yield based on a share price of Dh4.21 as of September 27.
“Adnoc Distribution’s resilience and steadfast focus on smart growth has positioned us to confidently deliver on our strategic priorities while ensuring attractive capital returns for our shareholders,” said Bader Al Lamki, chief executive of Adnoc Distribution.
Since its IPO in 2017, the company has maintained a consistent dividend track record. It expects earnings momentum in fuel and non-fuel businesses to improve in 2022 and beyond and support its dividend policy.
During the first six months of the year, Adnoc Distribution recorded a strong performance, reporting Ebitda [earnings before interest, taxes, depreciation and amortisation] of Dh1.99bn, net profit of Dh1.56bn, up 35.6 per cent from the same period last year, and a free cash flow of Dh1.96bn.
As of the end of June 2022, the company maintained a solid balance sheet alongside robust liquidity. It had cash and cash equivalents (including term deposits) of Dh2.8bn, unutilised revolving credit facilities of Dh2.8bn, retained earnings of Dh2bn and net debt to Ebitda of 0.77 times.
“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,” Mr Al Lamki said.
During the first half of 2022, the company opened 12 new stations in the UAE, of which four are in Dubai, taking its domestic network to 472. In Saudi Arabia, the company added 26 new stations over the same period, taking its network in the kingdom to 66. The company’s total network stands at 538 stations as of June 30, as it increased exports of its lubricants business, Adnoc Voyager, growing its network to 21 global markets.
Adnoc Distribution recently announced its transaction to acquire a 50 per cent stake in TotalEnergies Marketing Egypt, one of the top four fuel retail operators in Egypt. The acquisition is expected to be completed in the first quarter of 2023.
The company was included on the FTSE Emerging Markets Index in September last year, followed by an increased weightage in May 2022. It is also listed on the new blue-chip FTSE ADX 15 (FADX15) Index, launched as a partnership between FTSE Russell and the ADX.
The specs
Engine: 3.5-litre twin-turbo V6
Power: 380hp at 5,800rpm
Torque: 530Nm at 1,300-4,500rpm
Transmission: Eight-speed auto
Price: From Dh299,000 ($81,415)
On sale: Now
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
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Biog:
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Favourite superhero: Batman
Favourite sport: anything extreme
Favourite person: Muhammad Ali
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Dir: Pa. Ranjith
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Rating: 1.5/5
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The bio
Favourite book: The Alchemist by Paulo Coelho
Favourite travel destination: Maldives and south of France
Favourite pastime: Family and friends, meditation, discovering new cuisines
Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.
Favourite Author: My father for sure
Favourite Artist: Damien Hurst
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- Nord Anglia International School (Dubai) – Dh85,032
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COMPANY PROFILE
Name: Akeed
Based: Muscat
Launch year: 2018
Number of employees: 40
Sector: Online food delivery
Funding: Raised $3.2m since inception
