ADNOC Distribution, listed on the Abu Dhabi Securities Exchange, announced that the company’s shareholders approved all the items of the General Assembly, which included the new five-year dividend policy and the appointment of new members to the Board of Directors. The company also confirmed its commitment to the new five-year strategy for growth enhanced by artificial intelligence and advanced technology.
The new dividend policy for the period 2024-2028 stipulates annual dividend distributions of $700 million (AED 2.569 billion) or no less than 75% of net profits, whichever is higher, according to a statement issued on Thursday.
In addition, shareholders approved a cash dividend distribution of AED 1.285 billion, equivalent to 10.285 fils per share, for the second half of 2023, which is expected to be paid in April 2024.
This brings the total cash dividend for the fiscal year 2023 to AED 2.57 billion for 2023, equivalent to 20.57 fils per share. This translates into an annualized earnings per share return of 5.6% for 2023, based on a share price of AED 3.66 as of March 27, 2024.
Sultan Ahmed Al Jaber, Chairman of ADNOC Distribution, said: “ADNOC Distribution has increased total shareholder return by 90% since its initial public offering in late 2017, through increasing both market capitalization and dividends. In doing so, the company has delivered on one of its most important commitments to shareholders, achieving record earnings before interest, tax, depreciation and amortization in 2023, exceeding $1 billion.”
The company’s new five-year growth strategy, announced at Investor Day in February 2024, underscores the company’s commitment to local growth and international expansion, and ensuring its business is future-proofed to transform ADNOC Distribution into a leader in the rapidly changing energy sector.
As part of this strategy, the company plans to increase the contribution of its business in Saudi Arabia and Egypt, in addition to exploring growth opportunities that bring value, supported by a strong balance sheet and the ability of its business to generate abundant cash flows.
This includes additional sectors such as lubricants, LPG, new sustainable mobility solutions, and exploring expansion opportunities into new global markets.
