Abu Dhabi, UAE — ADNOC Distribution today announced that the company’s Board of Directors has approved the distribution of an interim cash dividend of AED 1.285 billion ($350 million), equivalent to 10.285 fils per share, for the first half of 2024, underscoring the company’s commitment to achieving sustainable and rewarding returns for its shareholders.
The last date for the share purchase to accrue these interim dividends will be on September 26, 2024, and shareholders whose names are registered in the shareholders’ register on September 30 will be entitled to receive these cash dividends.
The first half dividend represents the first installment of the 2024 gross dividend which is expected to amount to AED 2.57 billion ($700 million), equivalent to 20.57 fils per share. The dividend is in line with ADNOC Distribution’s five-year dividend policy for the years 2024-2028, which provides for an annual dividend of AED 2.57 billion ($700 million) or at least 75 percent of net profit, whichever is higher, at the discretion of the Management Approval of the company’s shareholders.
The second and final portion of 2024 dividend is expected to be paid in April 2025, in accordance with the recommendations of the Board of Directors and shareholder approval.
The 2024 dividend will offer an annual return of 5.6 percent based on a price of AED 3.67 per share as at 20 September 2024.
This policy provides a clear long-term view of expected dividends to shareholders and provides the opportunity to increase dividends as future dividends grow, reflecting ADNOC Distribution’s commitment to creating sustainable value for its shareholders.
Bader Saeed Al Lamki, Chief Executive Officer of ADNOC Distribution, said: “In 2024, ADNOC Distribution achieved an exceptional performance, which is reflected in our strong financial results and confidence in our ability to continue to develop and grow in the future.
During the first half of 2024, ADNOC Distribution reported an increase in earnings before interest, tax, depreciation and amortization of AED 1.89 billion (US$ 515 million), up 16 percent year-on-year.
Net profit also saw a 7.7 percent year-on-year increase in net profit to AED 1.17 billion (US$ 319 million), supported by higher fuel sales, increased international business contributions and growth in non-fuel retail sales.
During the first half of 2024, the company successfully achieved free cash flow of AED 1.79 billion (US$ 488 million), which can fully cover the interim cash dividend of AED 1.285 billion (US$ 350 million).
The company maintained an ample balance sheet and strong financial position as at 30 June 2024, with a net debt to earnings before interest, tax, depreciation and amortization ratio of 0.53 times, with ample liquidity of AED 6.2 billion (US$ 1.7 billion), including a cash position of AED 3.4 billion (US$ 925 million).
This strong financial position allows the company to grow and deliver attractive returns for shareholders in the future, while since its first IPO, in 2017, ADNOC Distribution has achieved attractive returns to shareholders by increasing both market capitalization and cash dividends.
The company’s cash dividend paid since its initial public offering totaled AED 16.2 billion ($4.4 billion), including cash dividends for the first half of 2024.
In 2023, it achieved record earnings of more than $1 billion before interest, tax, depreciation and amortization, as the company moves forward with its growth plans and remains in a strong position to achieve its strategic plans to accelerate and enhance growth.
In addition to its cash dividend policy, ADNOC Distribution unveiled its new five-year growth strategy, which focuses on growing locally and internationally, ensuring that its business is future-proof, enhancing its digital capabilities and operational efficiency, and aims to boost the company’s long-term growth while continuing to deliver attractive returns to shareholders.
Eng. Bader Saeed Al Lamki added: “Our new strategy allows us to enter new markets both inside and outside the country, reinforcing our leading position and achieving sustainable and rewarding returns for shareholders in the long term.”
ADNOC Distribution continues to explore new growth opportunities and revenue streams from the energy transition, focusing on new mobility solutions such as electric vehicle charging and other sustainability initiatives.
In an ongoing drive to keep its business abreast of the future, the company focuses on growth and sustainability with its core objective of creating long-term sustainable value for its shareholders.