Abu Dhabi – Mubasher: The board of Abu Dhabi National Oil Company for Distribution (ADNOC Distribution) approved interim cash dividends amounting to $350 million (AED 1.28 billion) for the first half (H1)of 2024.
ADNOC Distribution is set to disburse 10.28 fils per share in line with its commitment to delivering consistent and attractive returns to its shareholders, according to a press release.
Deadline for purchasing shares to qualify for the interim dividend payment will be on 26 September 2024, with eligibility based on shareholders recorded in the share register on 30 September.
The dividend marks the first instalment of the full-year 2024 dividend of $700 million (AED 2.57 billion). This aligns with the five-year dividend policy, which sets an annual dividend of 20.57 fils per share or a minimum of 75% of net profits.
Subject to the board’s recommendation and shareholder approval, the second and final dividend for 2024 is expected to be paid in April 2025.
The full-year dividend would offer a 5.60% annual dividend yield, based on the share price of AED 3.67 as of 20 September 2024.
ADNOC Distribution will have paid a total of $4.40 billion (AED 16.20 billion) in dividends since its initial public offering (IPO) in 2017, including the H1-24 dividend.
Besides its dividend policy, the ADX-listed group unveiled a new five-year growth strategy to drive digital capabilities and boost operational efficiencies.
Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “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.”
In the first six months (6M) of 2024, ADNOC Distribution witnessed a 16% year-on-year (YoY) hike in earnings before Interest, taxes, depreciation, and amortisation (EBITDA) to $515 million (AED 1.89 billion) and a 7.70% YoY rise in net profit to $319 million (AED 1.17 billion).
The group reported a free cash flow of $488 million (AED 1.79 billion) in H1-24, comfortably covering the interim dividend of $350 million (AED 1.28 billion).
As of 30 June 2024, the UAE-based company maintained a solid financial position with a net debt-to-EBITDA ratio of 0.53x and liquidity of $1.70 billion (AED 6.20 billion), including a cash position of $925 million (AED 3.40 billion).
