ADNOC Distribution announced that its net profit rose to 2.4 billion dirhams at the end of 2020, compared to 2.22 billion dirhams in 2019, with a growth of 9.7%, while basic profits before deduction of interest, tax, depreciation and amortization amounted to 3.6 billion dirhams, up from 2.75 billion dirhams, an increase of 31.6%. .
The company added, in a disclosure to the Abu Dhabi market this evening, that it showed a performance characterized by strength and flexibility during the past year despite the continuing uncertainty in the markets due to the “Covid-19” virus.
The company indicated that it maintains its strong financial position that qualifies it to continue its efforts to expand locally and internationally in line with its policy of smart growth, in addition to fulfilling its commitments to distribute profits, as the company’s liquidity increased to 5.6 billion dirhams as on December 31, 2020, including 2.8 billion dirhams in cash and so on. Equivalent to it and 2.8 billion dirhams in the form of untapped credit facilities.
The company stated that after the increase in the quantities of fuel sold during the third quarter of last year by 24%, the quantities of fuel sold during the last quarter of the same year increased by 2% compared to the previous quarter.
The company confirmed that during the past year it opened 64 new stations in various parts of the country, which exceeds its previous plans to open 50 to 60 new stations, and represents ten times the number of stations opened during 2019, and the company has expanded its network significantly in Dubai by opening 20 new stations in Emirate.
In another context, the company’s board of directors proposed distributing dividends worth 1.285 billion dirhams (10.285 fils per share) for the second half of 2020, which will be presented to shareholders for approval during the general assembly meeting expected to be held on March 16th. And subject to the approval of the shareholders, total dividends for the past year are expected to reach 2.27 billion dirhams (20.57 fils per share), an increase of 7.5% compared to 2019.
The Board also recommended amendments to the dividend policy with the aim of imparting more clarity and transparency to shareholders ’returns. The Board proposed dividend distribution for the year 2022, amounting to a minimum of 2.57 billion dirhams, and a dividend distribution of at least 75% of distributable profits, starting from 2023.
The company expects to continue distributing half of the annual profits in October of this year, and distributing the remaining half of the profits in April of the following year.
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