Yesterday, ADNOC Distribution held its annual general meeting, which was broadcast using the visual communication technology.
The company's shareholders agreed to pay the second and final half of the dividends for the fiscal year ending on December 31, 2019, at a value of 1.194 billion dirhams (9.55 fils per share). Where these distributions are added to the interim dividend of 1.194 billion dirhams (9.55 fils per share), which was paid in October 2019, and thus the value of the dividends for the year 2019 amounted to 2.39 billion dirhams (19.10 fils per share), which is in line with the company's obligations towards its shareholders according to The 2019 dividend policy, which reflects an increase of 62%, compared to 2018.
Dividend distribution for 2020 is expected to increase by 7.5%, compared to 2019, to reach AED 2.57 billion, according to the company's dividend policy.
The shareholders of the company also agreed to make an amendment to the dividend policy, to reach 2.57 billion dirhams in 2021, (compared to 75% of the dividends distributable according to the current policy). They also agreed to a policy of dividend distribution of no less than 75% of the distributable profit for the years 2022 and later, to match the strong financial position that the company enjoyed at the end of 2019, and confidence in its ability to achieve strong financial flows in the future.
“ADNOC Distribution” stressed that it is moving with confident and firm steps towards implementing its strategic obligations and achieving smart growth, despite the current market situation, where the company has fixed margins regarding retail fuel sales, which represents 70% of its total sales.
During 2019, ADNOC Distribution showed the ability to achieve strong performance through its fuel and other operations, recording a net profit of 2.2 billion dirhams (0.177 dirhams per share), reflecting an increase of 4.2%, compared to 2018. Profitability also increased Before deducting interest, tax, depreciation and amortization by 7.2%, to reach 2.72 billion dirhams.
The Chairman of the Company’s Board of Directors, Dr. Sultan bin Ahmed Al-Jaber, assured the shareholders - in his opening speech - of the company's commitment to preserving the safety of its shareholders, customers, employees and assets, by taking all necessary preventive measures.
He said: «During this exceptional period, it is important that we continue to work to fulfill the promises we have made towards our customers, shareholders, and employees, and (ADNOC Distribution) confirms its commitment to a comprehensive and integrated strategy for customer service, and ensuring the application of the best standards of health and hygiene, in order to preserve the safety of its customers, employees and assets. As a top priority, where personal protection is provided, and the latest smart and sophisticated electronic payment methods have been adopted. ”
He added, "We are continuing our efforts to achieve smart growth and expand locally and internationally according to the announced plans, and we realize the responsibility that we have to contribute to supporting the local economy."
Strong potential
The Chairman of the Board of Directors of "ADNOC Distribution", Dr. Sultan bin Ahmed Al-Jaber, said that "the company's board of directors is confident of the strong distinct capabilities of the company in the administrative, financial and technical fields, as this confidence was reflected in the new dividend policy."
He added: "We are working in these changing circumstances, and we are confident in our ability to overcome the effects of the Corona virus in the long run."