Adnoc Distribution approves interim dividend for H1 2019
The company to enter Indian lubricants market in the third quarter to boost growth
Adnoc Distribution board approved the payment of an interim Dh0.0955 per share dividend, totalling about Dh1.194 billion for the first six months of the year, the company said in a statement to the Abu Dhabi Securities Exchange.
This is the first payment in what is expected to be a full-year 2019 dividend payment of Dh2.39bn (Dh19.10 fils per share), reflecting a 62 per cent increase compared to last year’s dividend. As per approved dividend policy, the second and final dividend for 2019 is expected to be paid in April 2020, subject to the board's recommendation.
"Our progressive dividend policy demonstrates our commitment to our shareholders as we advance our strategic priorities of steady and sustainable growth, enhanced customer experience and attractive capital returns for our shareholders," said Saeed Mubarak Al Rashdi, acting chief executive of Adnoc Distribution.
"With our ability to generate cash flow, we are confident in our ability to pay a generous dividend to our shareholders while also maintaining significant capacity to deploy capital through a disciplined investment strategy aimed at continuing our efforts to expand our fuel station network, with a focus on the underserved Dubai market, as well as investing in our non-fuel business,” he added.
Adnoc Distribution, the UAE’s biggest fuel and convenience retailer, reported a 2.2 per cent rise in second-quarter net income. Net profit rose to Dh595 million for the three-month period ending June and increased 4.3 per cent in the first half of the year to Dh1.17bn, despite a 1.7 per cent decline in total volume of fuel sales and lower inventory gains.
The company is planning to enter the Indian lubricants market in the third quarter of this year as it looks to increase corporate sales volumes, its chief operating officer Mohamed Al Hashimi, told The National earlier this year.
The fuel retailer will also roll out 100 refurbished convenience stores in the UAE by the end of next quarter and plans to realise cost savings of around $50m (Dh183.6m) by year-end.
Adnoc Distribution, which floated 10 per cent of its shares in 2017, has since expanded its portfolio to 379 retail fuel stations in the UAE.
Three stations were opened in the country in the first half of the year and two are under commission. The company remains on track to open 20 to 30 new stations across the Emirates this year, with a focus on expanding in Dubai.
Updated: September 30, 2019 04:48 PM