ADNOC Distribution approves interim dividend of $350mn

Investors intending to qualify for the interim dividend payment, will have to purchase shares by September 26. Record date is September 30.

Based on closing price of the share on September 20, the full-year dividend would offer a 5.6 per cent annual dividend yield.

The company recently adopted a new 5-year dividend policy, which sets an annual dividend of $700 million or a minimum of 75 per cent of net profits, whichever is higher. The H1 2024 dividend aligns with the new policy as the ADNOC Distribution expects to pay out a full-year dividend of $700 million (AED2.57 billion), equivalent to 20.57 fils per share, in 2023.

Since its IPO in 2017, ADNOC Distribution has paid a total of $4.4 billion (AED16.2 billion) in dividends.

Bader Saeed Al Lamki, CEO of ADNOC Distribution, commented: “ADNOC Distribution has demonstrated exceptional performance in H1 2024, driven by strong financial results and confidence in future growth.

“The successful execution of our smart growth strategy reinforces the company’s attractive value proposition, while our healthy balance sheet and robust cash generation underpin future growth and shareholder returns.”

Driven by higher fuel volumes, increased contributions from international operations, and growth in the non-fuel retail business, ADNOC Distribution reported a 16 per cent increase in EBITDA to $515 million year-on-year (YoY) and a 7.7 per cent YoY rise in net profit to $319 million). It generated free cash flow of $488 million in the first half of 2024, comfortably covering the $350 million interim dividend. As of June 30 this year, ADNOC Distribution had a cash position of $925 million.

ADNOC Distribution continues to explore growth opportunities in fuel and non-fuel retail, as well as new revenue streams emerging from the energy transition. It is keen to expand its new mobility solutions, including Electric Vehicle (EV) charging, while maintaining a strong focus on sustainability-driven initiatives.