ADNOC Distribution Shareholders Approve New Five-Year Dividend Policy

At the recent Annual General Assembly Meeting (AGM), ADNOC Distribution announced the approval of all agenda items, including a forward-looking five-year dividend policy and the appointment of new board members. The company, under the leadership of Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of ADNOC Distribution, has confirmed its commitment to a growth strategy that leverages artificial intelligence (AI), digitalisation, and advanced technology to drive future expansion.

Since its initial public offering in 2017, ADNOC Distribution has offered shareholders a 90% return on investment through increased market value and dividends. It has also achieved its target of $1 billion in EBITDA for 2023. Dr. Al Jaber highlighted the company's early adoption of AI to enhance operational efficiencies and customer experience, stating that this technology will continue to play a crucial role in unlocking further value for the business, shareholders, and customers alike.

The newly introduced dividend policy for 2024-2028 promises an annual dividend of $700 million or a minimum of 75% of net profits, whichever is higher. Shareholders have also approved a dividend distribution of AED1.285 billion for the second half of 2023, expected to be paid in April 2024. This decision reflects the company's sustainable growth trajectory and robust cash flow.

ADNOC Distribution's ambitious growth strategy aims to expand its service station network to 1,000 by 2028, increase non-fuel transactions by 50%, and boost convenience store numbers by 25%. Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, emphasized the strategy's focus on sustainability and leveraging technology to position the company as a leader in multi-energy mobility and convenience on an international scale.

The company's innovative use of AI includes the Fill & Go system, an AI-enabled license plate recognition system for seamless refueling, and the launch of an AI-operated autonomous refueling robotic arm. These initiatives are part of ADNOC Distribution's efforts to enhance customer experience and operational efficiency. The company's AI-driven refueling process predicts fuel demand at service stations accurately, reducing fuel shortages and supporting decarbonisation efforts by optimizing fuel truck delivery routes.

With nearly two million members, ADNOC Rewards is the UAE's largest fuel retail loyalty programme. The use of AI and data analytics has enabled the company to offer hyper-personalised consumer deals, contributing to a significant increase in fuel and non-fuel transactions at service stations.

As ADNOC Distribution continues to integrate AI across its operations, it remains focused on expanding its international presence in markets like Saudi Arabia and Egypt while exploring new sectors such as lubricants and LPG. The company's strategic growth plan not only aims at enhancing its service offerings but also at contributing positively to the evolving energy landscape.

With inputs from WAM