Adnoc Distribution approves interim dividend of $350m for first half of year

Adnoc Distribution, the UAE’s largest fuel and convenience retailer, approved an interim dividend of Dh1.285 billion ($350 million) for the first half of 2025, after posting strong growth in its net profit for the period.

The dividend amount, which equals 10.285 fils per share, represents the first installment of the expected full-year 2025 dividend of $700 million, the company said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.

Adnoc Distribution’s five-year dividend policy (2024-2028) sets an annual dividend of $700 million or a minimum of 75 per cent of net profits, whichever is higher, subject to board and shareholder approval.

The full-year 2025 dividend would represent an annual yield of 5.4 per cent based on the share price of Dh3.81 as of September 22.

The last day to purchase shares to qualify for the interim dividend is September 30, with eligibility based on shareholders recorded in the register on October 2. The payment date for the amount is October 22.

“The approval of our interim dividend for H1 2025 reflects the strength of our growth strategy and our commitment to delivering consistent value to shareholders," said Bader Al Lamki, chief executive of Adnoc Distribution.

"Since our IPO [initial public offering] in 2017, Adnoc Distribution has more than doubled total shareholders returns."

The company has delivered $5.1 billion in dividends, including for the first half of this year, since its listing.

The dividend announcement comes after Adnoc Distribution reported a 12 per cent rise in first-half net profit to $358 million, on the back of a 5.6 per cent increase in first-half fuel volumes, which reached 7.62 billion litres.

Non-fuel retail transactions also grew, with gross profit up by 14.9 per cent annually, driven by strong performance of convenience stores, car services, property management and lubricants businesses, the company said.

Adnoc Distribution recorded its highest earnings before interest, taxes, depreciation and amortisation (Ebitda) – a key measure of profitability, of $566 million, up 10 per cent annually.

Meanwhile, revenue for the six-month period was down 2.4 per cent to $4.65 billion.

As per its five-year growth strategy, the company said it is focused on domestic expansion, international platforms, future-proofing the business, digital transformation, and operational efficiencies.

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Adnoc Distribution expanded its network by 47 stations in the first six months of the year, mostly in Saudi Arabia.

It has also raised its target for this year to 60-70 new stations. More than 20 artificial intelligence-enabled initiatives are under development or deployment.

This month, its parent company Adnoc said it would transfer its equity stakes in all its listed companies to its international investment unit XRG.

The companies included in the transfer are Adnoc Distribution, Adnoc Drilling, Adnoc Gas and Adnoc Logistics and Services, as well as Fertiglobe, all listed on the ADX.

The move is not expected to affect operations, teams or the strategic direction of the entities.