ADNOC Distribution, the UAE’s largest fuel and convenience retailer, announced that its board of directors has approved an interim cash dividend distribution of AED 1.194 billion or AED 0.0955 per share to its shareholders for the first six months of 2019.
This represent the first dividend payment of the expected full-year 2019 dividend distribution of AED 2.39 billion or AED 0.1910 per share, up 62% from 2018 dividend of AED 1.47 billion, according to a press release.
The second and final dividend for 2019 is projected to be paid in April 2020, subject to the board’s recommendation, ADNOC Distribution highlighted.
This dividend distribution marks the first payment under the company’s new dividend policy approved by the company’s shareholders in April 2019.
Under the new policy, the company plans to raise its annual dividend payment by 62% to AED 2.39 billion ($650 million) or AED 0.1910 per share this year as compared to 2018.
Additionally, the company intends to increase annual dividends for 2020 by 75% to AED 2.57 billion ($700 million) or AED 0.2057 per share compared to 2018.
The new policy also includes a minimum payout of 75% of distributable profits from 2021 onwards.
ADNOC Distribution, listed on the Abu Dhabi Securities Exchange (ADX), predicted it would maintain paying half of the annual dividend in October of the relevant year and half in April of the following year.
Saeed Mubarak Al Rashdi, acting CEO of ADNOC Distribution, said: “Our progressive dividend policy demonstrates our commitment to our shareholders as we advance our strategic priorities of steady and sustainable growth, enhanced customer experience and attractive capital returns for our shareholders.”
“With our ability to generate cash flow, we are confident in our ability to pay a generous dividend to our shareholders while also maintaining significant capacity to deploy capital through a disciplined investment strategy aimed at continuing our efforts to expand our fuel station network, with a focus on the underserved Dubai market, as well as investing in our non-fuel business,” Al Rashdi added.
Shareholders of ADNOC Distribution registered on 9 October 2019 will be entitled to receive the interim cash dividend, meaning the last day for purchasing shares and fulfilling the eligibility criteria is 7 October 2019.
It is worth noting that the registered shareholders in ADNOC Distribution on 9 October 2019 will be granted the rights to receive the interim cash dividend, “meaning the last day for purchasing shares and fulfilling the eligibility criteria is 7 October 2019,” the company pointed out.
The dividend payment is scheduled within 30 days from the date of the board’s approval, the ADX-listed company noted.
Earlier this month, ADNOC Distribution said its board of directors would meet on 29 September to approve payment of the interim dividend, mulling over an interim dividend distribution for 2019.
In August, the company revealed it had generated a net profit of AED 1.173 billion for the first half of 2019, up 4.3% year-on-year from AED 1.124 billion.