Abu Dhabi, UAE — ADNOC Distribution Wednesday reported a 4.6 percent year-on-year growth in EBITDA to $1 billion (AED 3.68 billion) for 2023.
The company said it successfully delivered on the five-year target it communicated to the market during its first Capital Markets Day in May 2019.
In addition, the underlying EBITDA for 2023, excluding the impact of inventory movements, increased by 15.4 percent year-on-year. This growth was fueled by a double-digit increase in fuel volumes and non-fuel business, along with a rising contribution from international operations.
The EBITDA also benefited from the Company’s efficiency improvement initiatives, leading to like-for-like operating expenditure (OPEX) savings of $28 million (AED103 million).
In line with its dividend policy, the Company’s Board of Directors has recommended distributing a dividend of $350 million (AED1.285 billion), equivalent to 10.285 fils per share, for the second half of 2023, which will be presented to the Company’s shareholders for approval at the Annual General Assembly Meeting scheduled March 2024.
Subject to shareholders’ approval, the total dividend for the fiscal year 2023 is expected to be $700 million (AED2.57 billion), equivalent to 20.57 fils per share, providing an annualized yield of 5.8% (at a share price of AED3.57 as of 6th February 2024).
