ADNOC Distribution shareholders approve $350mln dividend for H2 2020
Acting CEO says the company is on target to achieve EBITDA of $1bln by 2023, as it sets a minimum dividend policy for 2022
Investors look up at electronic boards displaying stock information at the Abu Dhabi Securities Exchange
By Imogen Lillywhite, ZAWYA
Shareholders of ADNOC Distribution have approved a dividend of AED 1.285 billion ($350 million) for the second half of 2020 and has set a minimum dividend policy for 2022.
According to an announcement at the company’s general assembly, the full-year dividend for 2020 is at AED 2.57 billion or 20.57 fils per share, an increase of 7.5 percent over the previous year.
The general assembly has also approved changes to the dividend policy setting 2022 dividend to a minimum of AED 2.57 billion ($699.74 million) or 20.57 fils per share.
“The approved dividend policy amendment recognises the company’s strong financial position at the end of 2020 and confidence in its growth prospects and cash-flow generation ability going forward,” ADNOC Distribution said in a statement to Abu Dhabi Securities Exchange (ADX).
“Despite current market conditions, ADNOC Distribution remains confident and steadfast in the delivery of its strategic commitments and sustainable returns for its shareholders.”
Acting CEO Ahmed Al Shamsi said the company was on track to achieve its EBITDA target.
“We stayed true to our commitment by serving the community to ensure that we continue to fuel the nation’s most vital lifelines during the time of crisis and we lived up to the promises we made to our shareholders, whether through delivering on our smart growth strategy, or by offering them a unique and attractive value proposition model with a high level of visibility on future returns,” he said.
Chairman of ADNOC Distribution, Dr Sultan Ahmed Al Jaber reassured shareholders on the company’s continued focus to achieve disciplined, smart and profitable growth in the local and international markets, the statement said.
The company also highlighted its claim to be the first fuel retailer globally to have vaccinate 100 percent of its employees against COVID-19 and said it was set to open 70-80 stations in 2021, up from 64 in 2020.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
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