Approval of a dividend of 1.285 billion dirhams (10.285 fils per share) for the second half of 2022.
– The General Assembly approves amending the dividend policy for the year 2023, specifying dividends of no less than 2.57 billion dirhams (20.57 fils per share) for the year.
– The company enhances the services of electric vehicle charging points during the first quarter of the year and establishes a partnership with “TAQA” to establish the joint venture “E2GO”.
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ABU DHABI, March 16th, 2020 (WAM) — ADNOC Distribution announced today that its shareholders have approved all items raised during the Annual General Assembly meeting, including the amendment of the dividend policy for the year 2023.
The strong results achieved by the company during the year 2022, in addition to its continuous growth, enabled it to establish a rewarding dividend policy that provides for a dividend distribution of no less than 2.57 billion dirhams (20.57 fils per share) for the year 2023 (compared to a dividend equal to at least 75% of the distributable profits). according to the previous policy).
The dividend policy for the following years will remain the same at a minimum of 75% of the distributable profits.
The approval of the new dividend policy reflects the company’s strong financial position at the end of 2022 and confidence in its growth prospects and its ability to generate ample cash flows.
ADNOC Distribution remains confident in its ability to deliver on its strategic commitments and deliver sustainable cash returns for its shareholders.
The shareholders also approved the distribution of cash dividends amounting to 1.285 billion dirhams (10.285 fils per share) for the second and last half of the year ending on December 31, 2022, which will be paid during the month of April 2023.
These dividends follow the distribution of interim dividends of AED 1.285 billion (10.285 fils per share) for the first half of 2022, which were paid in October 2022, bringing the total dividends for 2022 to AED 2.57 billion (20.57 fils per share), which Complies with the company’s dividend policy.
During 2022, ADNOC Distribution expanded its network of stations in the country to 502 service stations, at a time when it opened 28 new stores, bringing the total number to 362 stores, in addition to renovating 42 other stores.
The company also focused throughout the past year on its plans to expand internationally, as it expanded its network of stations in the Kingdom of Saudi Arabia to reach 66 service stations.
In addition, the company boosted its international expansion by acquiring a 50% stake in Total Energy Marketing Egypt, one of the four largest fuel retail companies in Egypt with a portfolio of 240 service stations.
As part of this expansion, the company is working on renovating 10 main service stations to carry the ADNOC Distribution brand, as the first opening will take place with the ADNOC Oasis store during the third quarter of 2023. ADNOC Distribution also plans to renew the other nine stations in 2024.
In addition, ADNOC Distribution will make its lubricants available in the Egyptian market while continuing to expand all its business segments internationally.
His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of the Board of Directors of ADNOC Distribution, said: “ADNOC Distribution’s march during the year 2022 was characterized by redoubling efforts with the aim of achieving growth and expanding abroad to new global markets. In addition to focusing on refining our capabilities to anticipate Future directions To ensure that our business and interests keep pace with the growth and continuous developments in the mobility sector, we have begun work on developing a more flexible business model that focuses mainly and increasingly on the concept of sustainability.”
He added: “While growth was one of the most important distinguishing features of 2022, we start the year 2023 with a focus on growth and sustainability, and since 2023 is the year of sustainability in the UAE, we will focus on ensuring that our business contributes to supporting the achievement of the strategic goals of the country, in addition to continuing to provide Long-term sustainable value for our shareholders.”
In this context, ADNOC Distribution has taken important steps to enhance the competitiveness of its business in the future, including through initiatives such as the recently announced partnership with the “TAQA” company to establish the joint venture “E2GO”, which aims to establish and operate the necessary infrastructure for charging vehicles electricity across the country.
The company also boosted its electric vehicle charging point services in the first quarter of the year to 36 charging points across the country, which will operate under the umbrella of E2Go.
ADNOC Distribution also announced its plans to reduce emissions from its operations and reduce carbon intensity by 25% by 2030, in addition to converting an existing $1.5 billion loan into a sustainability-linked loan.
During 2022, ADNOC recorded strong financial results, as EBITDA reached 3.52 billion dirhams, an increase of 15% year-on-year, while net profit increased by 22% year-on-year to reach 2.75 billion dirhams.
The company also maintained a strong balance sheet and ample cash liquidity, as the company’s liquidity amounted to 5.5 billion dirhams, including 2.7 billion dirhams in cash and its equivalent, and 2.8 billion dirhams in unused credit facilities, while the ratio of net debt to earnings before interest and tax was deducted. and depreciation and amortization 0.78 times.
Moreover, non-fuel transactions recorded an increase of 15% during 2022, driven by customer-focused promotional initiatives such as the ADNOC Rewards program and the improvement of customer shopping experiences through the ADNOC Oasis store renovation campaign.
Engineer Badr Saeed Al-Lamki, CEO of ADNOC Distribution, said: “The strong cash flows that we have achieved, coupled with our strong financial position, have increased the strength of ADNOC Distribution’s 50-year-old foundations, which ensures the company’s ability to implement its growth plans over the coming years, both locally and internationally.” “.
He added, “We have achieved many successes and achievements during 2022, especially with regard to expanding the network of service stations, international growth, and the use of the latest technologies. The acquisition deal in Egypt is the largest international deal in the company’s history, and it will contribute to strengthening our presence in one of the most dynamic markets in the country.” In addition, our network of stations has expanded to exceed 500 service stations, including the opening of the distinguished station No. 222 on Sheikh Zayed Road in Dubai, which provides the best customer shopping experiences, and uses the latest advanced technologies in the field of sustainability.