ADNOC Distribution is eyeing to carry on the momentum of 2022 into 2023 and beyond, future-proofing its businesses and continues to reward shareholders.
The UAE’s largest fuel and convenience retailer announced all agenda items in the annual general meeting have been approved by shareholders, including an amendment to dividend policy for 2023, setting a minimum of AED2.57 billion ($700 million) or 20.57 fils per share.
That’s the equivalent of total dividend paid for 2022, which the company called ‘the year of growth’ and led to strong results. At the AGM on Thursday, a total payout of AED1.285 billion (10.285 fils per share) was approved for the second half of 2022.
ADNOC Distribution’s earnings before interest, tax, depreciation and amortisation (EBITDA) of AED3.52 billion ($960 million) was up 15 percent year-on-year, while net profit of AED2.75 billion ($750 million) was 22 percent increase over the previous year. The company had AED2.7 billion in cash and cash equivalent, and AED2.8 billion in unutilised credit facilities.
New dividend policy for 2023
The minimum AED2.57 billion dividend policy for 2023 is a change compared to the previous policy of paying a minimum 75 percent of distributable profits as dividend. The policy for years after 2023 remains unchanged.
The new dividend policy for 2023 recognises the company’s strong financial position at the end of 2022 and confidence in its growth prospects and cash-flow generation ability going forward.
The approved final H2 2022 dividend payment of 10.285 fils per share will be paid in April 2023.
A big year for ADNOC Distribution
In 2022, ADNOC Distribution increased its network in the UAE to 502 stations. It added 28 new ADNOC Oasis convenience stores to bring the total to 362.
The company grew its network in Saudi Arabia to 66 and its international expansion received a major boost with the acquisition of a 50 percent stake in TotalEnergies Marketing Egypt, which has a portfolio of 240 stations in the country. The company will also launch its lubricants in Egypt as it continues to expand all segments of the business internationally.
Dr. Sultan Ahmed Al Jaber, Chairman of ADNOC Distribution, said: “The journey of ADNOC Distribution in 2022 was one powered by growth and the realisation of the company’s vision to venture beyond our borders into new markets. It is one that has also resulted in a heightened awareness of how closely intertwined our interests are with those of the future as we continue to build a more resilient business model which focuses increasingly on sustainability.
“As much as 2022 was about growth, our journey in 2023 will focus on growth and sustainability. As we enter the UAE year of sustainability, never has it been so essential for us to further commit to proving that our business can both support the strategic goals of our nation, while at the same time create long-term sustainable value for our shareholders.”
The future is green
The recent partnership with TAQA to establish E2GO, a joint venture to build and operate electric vehicle infrastructure in the UAE, will continue to be a big focus area for ADNOC Distribution, which will increase the number of electric vehicle (EV) chargers roll-out in Q1 to 36 charging points.
ADNOC Distribution has also announced plans to decarbonise operations and reduce carbon intensity by 25 percent by 2030, in addition to having converted its existing USD 1.5 billion term loan into a sustainability-linked loan.
Non-fuel retail transactions increased by 15 percent during 2022, driven by ongoing focus on customer-centric initiatives such as ADNOC Rewards and offering an upgraded customer experience by modernising the Oasis retail space.
Bader Saeed Al Lamki, CEO, ADNOC Distribution, said: “Our strong cash flow and solid financial position added new strength to ADNOC Distribution’s 50-year foundation, ensuring that we are well positioned to deliver on our growth ambitions over the coming years, both domestically and internationally.
“Our ongoing emphasis on diverse national and international expansion, coupled with our dedication to providing top-notch, inventive, and environmentally-sound mobility products and solutions, will enable us to achieve and surpass our growth targets for numerous years to come.”
ADNOC Distribution was founded in 1973. Today, it operates service stations in all seven emirates in its home country, as well as Saudi Arabia, and sells lubricants in 25 countries across the world via distributors. Now in its 50th year, ADNOC Distribution has over 560 service stations, with 502 in the UAE.
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