ADNOC Distribution, the UAE-based fuel and convenience retailer listed on the Abu Dhabi Securities Exchange (ADX), has recommended the introduction of a new dividend policy for 2024-28 based on paying annual dividend of $700 million or a minimum 75% of net profit, whichever is higher, subject to shareholders’ approvals in March during the General Assembly Meeting.

The company, which is holding an Investor Day on February 26, reported $1 billion in earnings before interest, tax, depreciation, and amortisation (EBITDA) in 2023.

It had $870 million of cash on its balance sheet with a ratio of net debt to EBITDA at 0.62x as of December 31, 2023.

ADNOC Distribution is scaling up its portfolio of low-carbon energy solutions, including biofuels, EV and hydrogen to support de-carbonisation of the transport industry and expanding its non-fuel retail offerings.

During 2023, the company witnessed double-digit growth in total fuel volumes across the GCC markets, as well as in its non-fuel retail business, achieving a four-year-high fuel to convenience store conversion rate of 25%.

ADNOC Distribution said it will continue to invest in the UAE by growing its non-fuel retail business and optimising real estate assets.

The company also plans to increase the contribution from international operations in Saudi Arabia and Egypt.

(Writing by Bindu Rai, editing by Brinda Darasha)