Adnoc Distribution approves dividend of $700m for 2022

The fuel retailer expects the final dividend to be paid in April 2023

An Adnoc Distribution service station. The fuel retailer continues to focus on sustainability, chairman Dr Sultan Al Jaber said. Photo: Adnoc
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Adnoc Distribution, the UAE’s largest fuel and convenience retailer, has approved a total dividend of Dh2.57 billion ($700 million) for 2022.

The dividend for the second half of the year will be paid in April 2023, the company said on Thursday.

Adnoc Distribution, which reported a 22 per cent rise in its profit for last year, said it expects to pay a “minimum” dividend of 20.57 fils a share for 2023.

“The journey of Adnoc Distribution in 2022 was one powered by growth and the realisation of the company’s vision to venture beyond our borders into new markets,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and chairman of Adnoc Distribution.

“It is one that has also resulted in a heightened awareness of how closely intertwined our interests are with those of the future as we continue to build a more resilient business model which focuses increasingly on sustainability,” said Dr Al Jaber, who is also managing director and group chief executive of Adnoc.

Last month, Adnoc Distribution completed the acquisition of a 50 per cent stake in TotalEnergies Egypt, marking its entry into Egypt.

The deal is expected to boost the company’s earnings before interest, taxes, depreciation and amortisation by more than 6 per cent, starting from the first year after completion, Adnoc Distribution said.

The company's net profit in 2022 rose to Dh2.75 billion while revenue increased by about 54 per cent to Dh32 billion, driven by higher fuel selling prices amid a rise in global crude prices.

Brent, the benchmark for two thirds of the world’s oil, surged to about $140 a barrel after Russia's invasion of Ukraine last year.

It has since given up most of its gains and was last trading at about $74 on Thursday.

Adnoc Distribution has also teamed up with Abu Dhabi National Energy Company, better known as Taqa, to build and operate electric vehicle infrastructure in Abu Dhabi.

The joint venture, E2GO, aims to become the principal provider of EV charging points and associated infrastructure across the UAE capital.

Adnoc Distribution, which plans to reduce its carbon intensity by 25 per cent by 2030, plans to install solar panels to power service stations, use biofuels in its fleet of vehicles and expand its network of EV charging stations.

Recently, the company converted an existing $1.5 billion term loan into sustainability-linked funding, in partnership with First Abu Dhabi Bank as environmental, social and governance co-ordinator.

Updated: March 16, 2023, 8:21 AM