The general meeting of “ADNOC Distribution” approves the distribution of 2.39 billion dirhams

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Abu Dhabi (Al Ittihad)

ADNOC Distribution approved yesterday, during the company’s annual general meeting, which was held remotely and broadcast using visual communication technology, to pay the second and last half of the dividends for the fiscal year ending on December 31, 2019 at a value of 1.194 billion dirhams, to reach the value of its distributions for last year 2.39 billion dirhams, an increase of 62% compared to 2018 and it is expected to increase dividends for the year 2020 by 7.5% compared to 2019 to reach 2.57 billion dirhams, according to the company’s dividend policy.
The company held its meeting remotely, as part of its efforts to preserve the health and safety of its shareholders, and in compliance with the state’s policies aimed at reducing the spread of the Corona virus through the application of physical spacing.

Preventative measurements
His Excellency Dr. Sultan Ahmed Al Jaber, Chairman of ADNOC Distribution, assured the shareholders, during his opening speech during the meeting, of the company’s commitment to preserve the safety of its shareholders, customers, employees and assets by taking all necessary preventive measures.
His Excellency appreciated the guidance of the rational leadership and the important decisions taken by the government and the distinguished national efforts made by the Supreme Council for National Security, the ministries of foreign and interior, defense, health, and education, the National Authority for Emergency and Crisis and Disaster Management, health agencies at the state level and other government agencies.
His Excellency praised the important and effective role that medical service providers play in maintaining the health and safety of society during the global crisis caused by the emerging Corona epidemic.
His Excellency Dr. Sultan Ahmed Al Jaber said: «During this exceptional period, it is important that we continue to work to fulfill the promises we have made towards our customers, our shareholders, and our employees. The company confirms its commitment to a comprehensive and integrated strategy for customer service and ensuring the application of the best health and hygiene standards in order to preserve the safety of its customers, employees and assets as a top priority, where personal protection methods are provided, and the latest smart and advanced electronic payment methods have been adopted.
ADNOC Distribution provides gloves, masks, and hand sanitizers to all employees and customers in its stations and stores that are sterilized and disinfected daily, and payment methods that do not require contact as an available phone payment option are available through the ADNOC Distribution application that ensures the least amount of direct interaction with workers at the stations and thus enhances Physical spacing. This allows customers to pay electronically without ever having to touch, by selecting the station in question, filling, fuel class and packing value without leaving their vehicles.
And then the application sends the data to the filling pump at the relevant station, which allows the station employee to supply the customer’s vehicle with fuel without the need for direct interaction, after which the value of the fuel will be deducted from the customer’s account in the application.

Develop initiatives
The company reached out to 14,000 customers through surveys and workshops, and in order to keep pace with their aspirations, their responses were based on the development of a number of initiatives during the past year, such as the launch of the ADNOC Rewards loyalty program, and a new concept was launched to serve residential neighborhoods through ADNOC stations « On the Go », and the first store was opened for the future ADNOC Oasis, which offers baked goods, fresh sandwiches and premium coffee products, in addition to providing a distinctive digital experience that allows customers to purchase touch points for self-shopping and integrated payment methods, in addition to the vehicle shopping experience.
Al-Jaber added: “We are continuing our efforts to achieve smart growth and expansion locally and internationally according to the announced plans, and we realize the responsibility that we have to contribute to supporting the local economy, and we will continue to focus during our expansionary operations on creating job opportunities for citizens, selecting local suppliers, and participating in community initiatives, Focusing on supporting local purchases to boost local added value. ” ADNOC Distribution succeeded during the year 2019 in raising the percentage of local added value, which represents the percentage of purchase contracts granted to local suppliers, and the company is working to explore more opportunities to increase spending on local suppliers to raise the rate of local added value and contribute to supporting the local economy during 2020.
The company’s shareholders agreed to make an amendment to the dividend policy to 2.57 billion dirhams in 2021 (compared to 75% of the dividend distributable according to the current policy). The company’s shareholders have also agreed to a policy of dividend distribution of no less than 75% of the dividend payable for the years 2022.

Smart growth
Despite the current market situation, ADNOC Distribution is still proceeding with a firm and steady step towards implementing its strategic obligations and achieving smart growth, as the company has steady margins regarding retail fuel sales, which represents 70% of its total sales.
ADNOC Distribution during the year 2019 showed the ability to achieve strong performance through its fuel and other operations, as the company recorded a net profit of 2.2 billion dirhams (0.177 dirhams per share), which reflects an increase of 4.2% compared to 2018.
Profitability before interest, tax, depreciation and amortization increased by 7.2% to reach AED 2.72 billion.
His Excellency Dr. Sultan Ahmed Al Jaber added, “The ADNOC Distribution Board of Directors is confident of the strong and distinct capabilities of the company in the administrative, financial and technical fields, and this confidence has been reflected in the new dividend policy. As we work in these changing circumstances, we are confident of our ability to overcome the effects of the long-term corona virus. The responsible and distinguished performance that the company provided during the year 2019 reinforces its solid record in terms of achieving value for its shareholders, as the company continues to enjoy a solid balance sheet and generate strong cash flows to support its plans for smart and sustainable growth. These successes could not have been achieved without the support provided by the responsible leadership, the company’s shareholders, employees and customers. ”

The company’s business expansion
His Excellency added: “We are continuing to strive to expand the company’s business, taking into account the current market conditions to ensure the achievement of smart and sustainable growth.” His Excellency clarified that ADNOC Distribution continues to focus on global expansion efforts in accordance with its ambitious strategy for smart growth, where ADNOC Distribution assesses opportunities to achieve smart growth and ensure the success of its operations, with a focus on achieving the highest return on investment.
His Excellency emphasized that the amendments to the approved dividend policy confirm the company’s commitment to shareholders, as well as confidence in the company’s future prospects, and its ability to achieve sustainable growth. And that the shares of ADNOC Distribution provide an excellent investment offer for shareholders and investors, as the company combines a low level of exposure to the risks associated with fluctuations in oil prices, with a good rate of predictable cash flow, and great opportunities for growth, accompanied by a clear and attractive policy for the distribution of profits for the years 2020 and 2021. (7.6%, according to the share price, AED 2.70 on March 31, 2020), which gives investors a clear view of future returns.

Community-based initiatives
For his part, Ahmed Al Shamsi, Acting CEO of ADNOC Distribution said: “It is important that we all work to provide the basic needs of customers near their homes during this period, as we are in the process of providing a number of community initiatives and support to emergency service providers. We also opened 7 new terminals recently at the level of the UAE, confirming the primary role we are doing to provide products and retail fuel at the country level, while adhering to the highest standards of hygiene and safety. ”

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