ADNOC Distribution achieved net profits of 2.4 billion dirhams in 2020.
According to Emirates News Agency, base profits for the same year before deduction of interest, tax, depreciation and amortization amounted to 3.6 billion dirhams.
The company's net profit rose to 851 million dirhams in the fourth quarter of 2020, and basic earnings before deduction of interest, tax, depreciation and amortization for the same period were 1.1 billion dirhams. p>
ADNOC Distribution demonstrated a strong and flexible performance during the year 2020 and maintained its strong financial position that qualifies it to continue its efforts to expand locally and internationally in line with its policy of smart growth, in addition to fulfilling To their obligations to distribute profits. As the company's liquidity reached 5.6 billion dirhams as of December 31, 2020, including 2.8 billion dirhams in the form of cash and its equivalent, and 2.8 billion dirhams in the form of unused credit facilities.
and following an increase in the quantities of fuel sold during the third quarter of 2020 by 24%, the quantities of fuel sold during the last quarter of 2020 increased by 2% compared to the previous quarter.
ADNOC Distribution's commitment to achieving profitable growth and profitable returns for shareholders continues.
Within the framework of the gradual dividend policy, ADNOC Distribution Company's Board of Directors proposed a cash dividend of AED 1.285 billion and 10.285 fils per share for the second half of 2020, which will be presented. Shareholders are required to approve it during the General Assembly meeting expected to be held on March 16, 2021.
and subject to the approval of the shareholders, total dividends for the fiscal year 2020 are expected to reach 2.57 billion dirhams 20.57 fils per share, which is an increase of 7.5% compared to the dividends for the year 2019, according to the approved dividend policy, which provides an annual profit return of 5.3% for the year 2020 based on the share price of AED 3.88 as on February 14, 2021.
The company distributed half of the profits for 2020 in October of last year, and it is expected that the second part of dividends for 2020 will be paid in April 2021 after Shareholder approval. According to the company's dividend policy, dividends of 2.57 billion dirhams 20.57 fils per share are expected for the year 2021.
The Board also recommended amendments to the dividend policy with the aim of imparting more clarity and transparency to the shareholders' returns.