ADNOC Distribution Declares $350 Million Interim Dividend For First Half Of 2024

ADNOC Distribution's Board of Directors has approved an interim dividend of $350 million (AED1.285 billion) for the first half of 2024. This equates to 10.285 fils per share, highlighting the company's dedication to providing consistent returns to shareholders. Shareholders must purchase shares by 26th September 2024 to qualify, with eligibility based on records as of 30th September 2024.

The interim dividend is the initial part of the anticipated full-year 2024 dividend, totaling $700 million (AED2.57 billion), or 20.57 fils per share. This aligns with ADNOC Distribution's five-year policy, promising an annual dividend of $700 million or at least 75% of net profits from 2024 to 2028, subject to board and shareholder approval.

In H1 2024, ADNOC Distribution reported a notable financial performance with a 16% year-on-year increase in EBITDA, reaching $515 million (AED1.89 billion). Net profit rose by 7.7% year-on-year to $319 million (AED1.17 billion), driven by higher fuel volumes and growth in non-fuel retail operations.

The company generated free cash flow amounting to $488 million (AED1.79 billion) in the first half of the year, comfortably covering the interim dividend payment. As of June 30, 2024, ADNOC Distribution maintained a strong financial position with a net debt-to-EBITDA ratio of 0.53x and liquidity of $1.7 billion (AED6.2 billion), including cash reserves of $925 million (AED3.4 billion).

Since its IPO in 2017, ADNOC Distribution has consistently delivered solid returns through enhanced market value and regular dividends. Including the H1 2024 dividend, it will have distributed a total of $4.4 billion (AED16.2 billion) in dividends since going public.

The company's record EBITDA of $1 billion (AED3.68 billion) in 2023 underscores its commitment to growth and positions it well for future strategic expansion phases.

Strategic Initiatives and Future Prospects

Earlier this year, ADNOC Distribution introduced a new five-year growth strategy focusing on domestic expansion, international platforms, digital enhancements, and operational efficiencies. This strategy aims to secure long-term growth while ensuring sustained shareholder value.

"Our new strategy enables us to capture new market positions both at home and abroad, reinforcing our leadership and creating long-term value to sustain shareholder returns," stated Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution.

The company remains committed to exploring growth opportunities in both fuel and non-fuel retail sectors while expanding into new revenue streams emerging from the energy transition.

Sustainability and Innovation

ADNOC Distribution is keen on expanding its mobility solutions like Electric Vehicle charging while focusing on sustainability-driven initiatives as part of its efforts to future-proof its business.

The primary goal remains delivering long-term sustainable value to shareholders through growth and sustainability initiatives.

With inputs from WAM