Shareholders of ADNOC Distribution approve $700m dividend

Shareholders of ADNOC Distribution approve $700m dividend

Shareholders of ADNOC Distribution, the fuel distribution business of Abu Dhabi National Oil Company, have approved a total dividend of $700m (Dhs2.57bn) for 2022, which translates to 20.57 fils per share. The dividend will be paid in April 2023. ADNOC Distribution’s full-year net profit surged by 22 per cent year-on-year to Dhs2.74bn last year while its revenues rose by 54 per cent to Dhs32bn, driven by higher fuel selling prices amid a rise in global crude prices. The company said it expects to pay a “minimum” dividend of 20.57 fils per share for 2023 considering the company’s record performance. “The company’s dividend policy for the years thereafter sets a dividend equal to at least 75 per cent of distributable profits,” ADNOC Distribution said in a bourse filing in February. ADNOC Distribution reported earnings before interest, tax, depreciation and amortisation (EBITDA) of Dhs3.52bn. It also maintained a strong balance sheet, with liquidity of Dhs5.5bn comprising Dhs2.7bn in cash and cash equivalent and Dhs2.8bn in unutilised credit facilities and net debt to EBITDA of 0.78x. The company’s convenience store sales continued to gain momentum throughout 2022, with non-fuel retail transactions increasing by 15 per cent during 2022. ADNOC Distribution’s expansion into Egypt