UAE's ADNOC Distribution approves $350mln interim dividend payment

For 2021, it has set a dividend of $699mln and a dividend equal to at least 75% of distributable profits from 2022 onwards

  
Logos of ADNOC are seen at Gastech. Image used for illustrative purpose.

Logos of ADNOC are seen at Gastech. Image used for illustrative purpose.

REUTERS/Toru Hanai

The board of directors of ADNOC Distribution has approved AED1.285 billion ($350 million) interim dividend payment (10.285 fils per share)for first six months of 2020.

ADNOC Distribution is a leading fuel distributor in the UAE. It has set a 2020 dividend payment of AED2.57 billion (AED20.57 fils per share), reflecting a 7 percent increase compared to last year’s dividend of AED2.39 billion (19.10 fils per share).

For 2021, it has set a dividend of AED2.57 billion and a dividend equal to at least 75 percent of distributable profits from 2022 onwards, subject to the discretion of the Board of Directors and the approval of shareholders.

Ahmed Al Shamsi, Acting CEO of ADNOC Distribution, said, "Our progressive dividend policy demonstrates our commitment to our shareholders as we advance our strategic priorities of steady and sustainable growth, enhanced customer experience and attractive capital returns for our shareholders.

"With our resilient business model offering stable and predictable cash flows and low exposure to oil price volatility, we are confident in our ability to pay a generous dividend to our shareholders, while also maintaining significant capacity to deploy capital through a disciplined investment strategy aimed at continuing our efforts to expand our fuel station network, with a focus on the Dubai market, as well as investing in our non-fuel and international business expansion."

The company has opened 37 new stations in the UAE, as at end of September 2020 and remains on-track to deliver 50-60 new stations by full year 2020, including 20-25 new stations in Dubai.

(Writing by Seban Scaria seban.scaria@refinitiv.com; editing by Daniel Luiz)

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© ZAWYA 2020

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