Adnoc Distribution, has sanctioned the payment of a Dh735 million to shareholders.
The dividend, which works out at 5.88 fils per share, was approved at Adnoc Distribution’s first annual general meeting after its initial public offering in December.
Dr Sultan Al Jaber, Adnoc Distribution board chairman, said “The IPO and recently announced fourth quarter and 2017 full year results illustrate that Adnoc Distribution is in a strong financial position, with an enhanced level of profitability, healthy margins and significant opportunities for future growth.”
He added that the dividend payment that has been approved is entirely in line with the dividend policy that we announced at the time of the IPO. The targeted dividend pay-out ratio puts the company near the top of major listed companies in the region.
Net income for 2017 rose 1.3 per cent to Dh1.8bn from 2016. Revenue for the 12-month period rose 11.8 per cent to Dh19.76bn, while total assets at the end of 2017 came to Dh12.2bn, an increase from Dh11.44bn in 2016. There was a 6.8 per cent increase in fourth-quarter profit, heightened by higher fuel prices and a growth in fuel sales.
Total fuel volumes saw a rise of 6.5 per cent in the last three months of 2017 to 2.63bn liters compared to the same quarter of 2016 by the company, which currently operates 360 fuel service stations and 235 Oasis convenience stores in the UAE.
Valued at Dh31.1bn, Adnoc Distribution sold 10 per cent of the company in the share float, the first listing on the Abu Dhabi bourse in more than six years. The company is set to open its first fuel service stations in Dubai and Saudi Arabia this year.
Through a franchise model, the company plans entering Saudi Arabia which will be the first of its kind for the fuel distributor. Dubai is the only emirate where the company has no physical presence and expanding into this region is now feasible following changes to how fuel is priced. Adnoc Distribution which holds a monopoly in Sharjah and Abu Dhabi, will launch at least 13 new fuel service stations this year, as part of the expansion plans.
John Carey, the deputy chief executive officer of Adnoc Distribution, said “We said before that we will open two fuel service stations in Dubai but we will open three and we have further expansion plans into Dubai. We are on track and in a good position and the fuel service stations that we picked are great locations, great traffic and puts us in a strong position." PWKD10042018
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