Adnoc Distribution, the UAE’s largest fuel and convenience retailer, is positioned for growth in domestic and international markets, and remains on track to achieve a minimum of $1bn in earnings by 2023.
The company’s shareholders have approved a second-half dividend payment of Dh1.28 billion ($350 million), bringing its total dividend paid for the 2021 financial year to Dh2.57bn, the company said in statement to Abu Dhabi Securities Exchange, where its shares are traded.
Adnoc Distribution will continue with its policy of paying a minimum dividend of Dh2.57bn for 2022 and a yearly payout equal to at least 75 per cent of distributable profits from 2023 onwards.
The company said its “resilient growth and solid outlook” have enabled the progressive dividend policy for investors, and it remains confident in “delivering its strategic commitments and sustainable returns for its shareholders”.
The positive growth outlook and earnings momentum in both fuel and non-fuel businesses is expected to improve in 2022 and beyond, and the company remains on track to hit its target of achieving a minimum of $1bn in earnings before interest, tax, depreciation and amortisation by next year.
“Adnoc Distribution is well positioned to grow its earnings amid economic recovery, and driven by our expansion in domestic and international markets while continuing to explore new opportunities to accelerate growth,” Dr Sultan Al Jaber, chairman of Adnoc Distribution, told shareholders at the company's general assembly meeting.
“The company remains committed to pursuing its expansion plans, locally and internationally.”
Dr Al Jaber is also Minister of Industry and Advanced Technology, Adnoc's managing director and group chief executive and UAE Special Envoy for Climate Change.
Adnoc Distribution plans to open 60 to 80 new stations this year, including 20 to 30 in the UAE and between 40 and 50 in international markets.
The company had a network of 462 service stations and 346 convenience shops across the UAE as of December 31, 2021.
It has 10 stations at various stages of development in the strategic market of Dubai, with an additional 10 more approved for further development, it said in February.
Adnoc Distribution also aims to boost its presence in Saudi Arabia, the Arab world’s largest economy. There are currently 40 Adnoc service stations operating in the kingdom.
The company, which was included on the FTSE Emerging Markets Index in September last year, reported a 50 per cent surge in its fourth-quarter revenue to Dh6.2bn. Its full-year revenue rose 30 per cent to about Dh21bn.
A recovery in fuel volumes in the fourth quarter pushed its net profit in 2021 to Dh2.2bn and its Ebitda to Dh3.1bn as the UAE continued to recover from the coronavirus-induced slowdown.
“Our business landscape is fundamentally shifting and Adnoc Distribution is leading this fuel retail transformation,” Dr Al Jaber said.
The company is “constantly innovating” to further reduce the carbon intensity of its operations and provide a diversified energy mix to customers.
“We understand that consumers want greater convenience and exceptional service, brought through digital innovation and a commitment to delivering balanced economic growth with environmental responsibility,” Dr Al Jaber said.