The Board of Directors of ADNOC Distribution approved yesterday distributing interim dividends of 1.285 billion dirhams / 10.285 fils per share / for the first six months of the year 2020, equivalent to 350 million US dollars, to the company’s shareholders. It is the first part of the total dividends for the year 2020, which the company expects to reach 2.57 billion dirhams / 20.57 fils per share /, which represents an increase of 7% compared to the dividends for the year 2019, which amounted to 2.39 billion dirhams / 19.10 fils per share /.
The company had announced an amendment to its dividend distribution policy during the company’s general assembly meeting held last March for the years 2021 and beyond, where dividends of 2.57 billion dirhams are scheduled for the year 2021, in addition to a minimum dividend of 75 % Of the distributable profits from 2022 onwards, according to the recommendation of the company’s board of directors and the approval of the shareholders.
ADNOC Distribution expects to continue distributing half of the annual profits in October of this year, and the remaining half of the profits will be distributed in April of the following year. The new dividend policy reflects the company’s strong record of gradually increasing its dividend distribution to its shareholders. The second part of the dividends for the year 2020 is expected to be paid in April 2021 in accordance with the approved dividend policy, and in accordance with the recommendation of the company’s board of directors and the approval of the shareholders.
Despite the exceptional circumstances, the company continued to accelerate the implementation of its smart growth strategy by opening 37 new stations across the Emirates by the end of September 2020, representing seven times the number of stations opened during the same period last year. The company is also moving forward with its plans to open 50-60 new stations during the year 2020, including 20-25 stations in Dubai.
On this occasion, Ahmed Al Shamsi, Acting CEO of ADNOC Distribution, said: Our bottom-up policy for dividend distribution demonstrates our commitment to our shareholders as we move towards achieving our strategic priorities that include achieving sustainable growth, improving customer experience and providing rewarding returns on shareholder investments. We are confident that our flexible business model, which enables us to achieve stable and easily predictable financial flows, in addition to our low risk of exposure to oil price fluctuations, supports our ability to pay generous dividends to our shareholders as a result of our ability to achieve financial flows, while continuing our ability to invest through Putting the capital into thoughtful expansion projects based on an investment strategy aimed at continuing our efforts to expand our network of stations, with a focus on the Dubai market, as well as continuing our investments in non-fuel fields.
ADNOC Distribution maintained its strong financial position, which qualifies it to continue its efforts to expand locally and internationally, in line with its policy of smart growth.
As the company’s liquidity reached 5.2 billion dirhams as of June 30, 2020, including 2.4 billion dirhams in cash and its equivalent (including fixed-term deposits), and 2.8 billion dirhams in the form of unused credit facilities. Despite the exceptional circumstances imposed by the new Corona virus during the first half of the year, the company continued to enhance the flexibility of its performance, registering a 7.6% increase in basic earnings before deduction of interest, tax, depreciation and amortization during the first half of the year 2020 compared to the first half of 2019.
ADNOC Distribution also continued its efforts to focus on providing a distinct experience to its customers by enhancing its various offerings, as 41 stores belonging to the company were renewed as part of the company’s retail stores renewal program this year, which contributes to providing an exceptional shopping experience to customers, in addition to accelerating its strategy The company for e-commerce, and the launch of many new services designed specifically to meet customer needs. The company has also expanded its digital offerings to include contactless payment solutions, home delivery from its stores, in addition to fuel and LPG delivery services to customers through the company’s application. In late July of this year, ADNOC Distribution launched the second phase of the ADNOC Rewards Program, which is based on the points collection system, which is the first loyalty program of its kind in the region by a company specialized in the field of fueling services, with more than 900,000 customers joining the membership. The program is up to date.
Earlier this month, ADNOC announced the completion of a private placement of 1.25 billion shares of ADNOC Distribution, and selling them to institutional investors.
This offering represents a 10% stake in the company’s shares, leading to an increase in the free circulation ratio to 20%, which contributes to expanding the company’s investor base and providing liquidity for its shares to trade on the Abu Dhabi Stock Exchange. This deal reflects the great demand by investors for ADNOC Distribution shares, which came as a result of the company’s strong performance and flexibility in terms of dividends since the initial public offering of its shares in 2017. ADNOC Distribution is presenting a unique offer that gives investors the opportunity to invest in a profitable and stable opportunity. In addition to a flexible and attractive dividend policy.
Shareholders of ADNOC Distribution Company registered in the stock registry on October 11, 2020 / the record’s closing date / are entitled to receive interim dividends, which means that the last day on which shares are permitted to purchase and to meet the conditions for eligibility for dividend distributions is October 7, 2020, while the process will be completed. Effective payment of profits within a period of 30 days from the date of approval of the company’s board of directors.
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