Sharjah 24 – WAM: ADNOC Distribution (ISIN: AEA006101017) (Symbol: ADNOCDIST), the UAE’s largest fuel and convenience retailer, announced Tuesday that shareholders have approved all agenda items, including amendment to its dividend policy at its Annual General Assembly meeting, its second to take place virtually.

The company’s robust and continued growth, despite the ongoing challenges faced as a result of the Covid-19 pandemic, has enabled the setting of a progressive dividend policy for investors for the upcoming two years, with AED 2.57 billion dividend for 2021 (20.57 fils per share) and a minimum of AED 2.57 billion dividend for 2022 (compared to minimum 75% of distributable profits as per previous policy).

The dividend policy for the years thereafter remains unchanged at a dividend equal to at least 75% of distributable profits. The approved dividend policy amendment recognizes the Company’s strong financial position at the end of 2020 and confidence in its growth prospects and cash-flow generation ability going forward. Despite current market conditions, ADNOC Distribution remains confident and steadfast in the delivery of its strategic commitments and sustainable returns for its shareholders.

Shareholders also approved a second and final dividend payment of AED 1.285 billion (10.285 fils per share) for 2020, resulting in a full-year dividend of AED 2.57 billion (20.57 fils per share) and representing an increase of 7.5% compared to 2019, consistent with its progressive dividend policy.

Speaking at the General Assembly meeting, Dr. Sultan Ahmed Al Jaber, Chairman of ADNOC Distribution, reassured shareholders on the Company’s continued focus to achieve disciplined, smart and profitable growth in the local and international markets while taking into consideration all necessary measures to ensure the safety and well-being of customers and employees.

In his opening remarks, Dr. Sultan Ahmed Al Jaber commended the guidance and efforts made by the UAE’s wise leadership, and the continued efforts of the National Emergency Crisis and Disaster Management Authority (NCEMA), Ministry of Health, Ministry of Interior, Ministry of Defence, health authorities across the UAE and other government agencies, which made the UAE a global leader in the fight against Covid-19.

Dr. Sultan Al Jaber further commented on ADNOC Distribution’s continued delivery on its smart growth plans in 2020, with the opening of 64 new service stations across the UAE, a ten-fold increase compared with 2019; with a strong focus on Dubai where presence was significantly increased with 20 new stations. This also included 38 ‘ADNOC On the go’ stations nationwide, which offer fuel and retail to communities where traditional stations have previously proven to be impractical. The Company also revitalised 100 ADNOC Oasis convenience stores to offer a fresh and modern environment.

Al Jaber also highlighted ADNOC Distribution’s focus on upgrading its convenience offering and the overall customer experience in 2020 to meet the changing needs and trends due to Covid-19 by accelerating the Company’s digital transformation strategy, adopting and promoting contactless methods of payment, including through the ADNOC Distribution mobile app. The Company also introduced online delivery service for retail convenience, with UAE door-to-door delivery from more than 100 ADNOC Oasis stores available through Talabat and Carriage; in addition to expanding its existing fuel and LPG delivery services.

Al Jaber touched upon ADNOC Distribution’s investment case in his speech and said: "Today, ADNOC Distribution shares offer a unique value proposition to shareholders and investors with a combination of low exposure to oil price volatility, predictable and healthy cash flows, strong growth potential and an attractive dividend policy that offers high payback visibility."

Dr. Sultan Al Jaber added: "As we begin to move out of the pandemic’s shadow and continue our proactive efforts to combat the threat of COVID-19, I feel confident that the hard work and dedicated efforts of our team will continue to build on our achievements, and unlock new opportunities for growth, as we shape the success of our future."

Ahmed Al Shamsi, Acting Chief Executive Officer, ADNOC Distribution, said: "We are proud of our achievements during 2020. We demonstrated a strong ability to navigate the challenges that were posed by the unprecedented circumstances that we have all faced amid the Covid-19 pandemic.