ADNOC Distribution Announces Interim Cash Dividend for H1 2024

ADNOC Distribution, the UAE’s largest fuel and convenience retailer, which is listed on the Abu Dhabi Securities Exchange (ADX) under the symbol ADNOCDIST, has declared an interim dividend of $350 million (AED 1.285 billion) for the first half of 2024. This payout, equivalent to 10.285 fils per share, reaffirms the company’s dedication to providing stable and attractive returns to its shareholders. The record date for eligibility is September 30, 2024, with the last day to buy shares being September 26, 2024.

Dividend Policy and Full-Year Outlook

This interim dividend represents the first half of the expected total dividend for 2024, projected at $700 million (AED 2.57 billion) or 20.57 fils per share. ADNOC Distribution’s five-year dividend policy guarantees either $700 million annually or a minimum of 75% of net profits, whichever is higher, from 2024 to 2028, subject to approval by the Board and shareholders. The second and final installment for 2024 is anticipated to be distributed in April 2025, pending the Board's recommendation.

Dividend Yield and Shareholder Value

Based on a share price of AED 3.67 as of September 20, 2024, the full-year dividend yield would be approximately 5.6%. ADNOC Distribution’s dividend policy provides transparency on future shareholder returns and potential benefits from earnings growth, thereby ensuring long-term value creation for shareholders.

Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “ADNOC Distribution has demonstrated exceptional performance in H1 2024, driven by strong financial results and confidence in future growth. The successful execution of our smart growth strategy reinforces the Company’s attractive value proposition, while our healthy balance sheet and robust cash generation underpin future growth and shareholder returns.”

Strong Financial Performance in H1 2024

In the first half of 2024, ADNOC Distribution experienced robust financial growth, reporting a 16% year-on-year (YoY) increase in EBITDA to $515 million (AED 1.89 billion) and a 7.7% rise in net profit to $319 million (AED 1.17 billion). This growth was driven by higher fuel sales, increased contributions from international operations, and expansion in the non-fuel retail sector.

Cash Flow and Financial Stability

The company generated $488 million (AED 1.79 billion) in free cash flow during H1 2024, comfortably covering the interim dividend payout. ADNOC Distribution maintained a healthy financial position as of June 30, 2024, with a net debt-to-EBITDA ratio of 0.53x and liquidity of $1.7 billion (AED 6.2 billion), including $925 million (AED 3.4 billion) in cash. This strong financial foundation supports the company’s continued growth and shareholder value creation.

Consistent Shareholder Returns Since IPO

Since its IPO in 2017, ADNOC Distribution has consistently delivered value to its shareholders, paying out $4.4 billion (AED 16.2 billion) in dividends, including the H1 2024 dividend. With a record EBITDA of $1 billion (AED 3.68 billion) in 2023, the company remains on track to meet its growth targets and is well-positioned for its next phase of accelerated strategic growth.

New Five-Year Growth Strategy

In 2024, ADNOC Distribution launched a five-year growth strategy, focusing on expanding its domestic market, strengthening its international platforms, future-proofing its operations, and enhancing digital capabilities. This strategy is aimed at ensuring long-term growth while continuing to maximize shareholder value through operational efficiencies.

“Our new strategy enables us to capture new market positions both at home and abroad, reinforcing our leadership and creating long-term value to sustain shareholder returns,” added Eng. Bader Saeed Al Lamki.

Focus on Future-Proofing and Sustainability

ADNOC Distribution remains committed to exploring new growth opportunities in both fuel and non-fuel retail segments, as well as tapping into emerging revenue streams in the evolving energy landscape. The company is actively pursuing advancements in new mobility solutions, including Electric Vehicle (EV) charging infrastructure, while emphasizing sustainability in its operations.

Strategic Investment and Financial Resilience

Supported by a solid financial base and strong cash flow generation, ADNOC Distribution’s strategic investments are aligned with its goal of delivering long-term sustainable value to shareholders. The company's forward-looking approach integrates growth and sustainability, ensuring continued success in the years to come.