ADNOC pays shareholders $200m amid building spree
ADNOC Distribution plan to build 13 service stations in the UAE this year
ADNOC Distribution will pay shareholders a dividend of $200.1m (AED735m) amid its drive to build more than a dozen service stations this year.
The company will open 13 fuel stations in 2018, keeping its years-long building spree on track, following the construction, completion, and opening of 24 petrol stations last year.
Among the 13 stations, three are under construction in Dubai. They will be ADNOC's first service stations in the emirate.
Physical expansion, coupled with a listing on the Abu Dhabi Securities Exchange (ADX) in December 2017, demonstrated that the company, which claims to the “largest fuel and convenience retailer” in the UAE, is in a strong financial position. This led to its approved payout of $0.01 (AED0.058) per share at its first annual general meeting (AGM), held this week.
At the AGM, ADNOC Distribution board chairman, Dr Sultan Ahmed Al Jaber, said shareholders should be rewarded for the company’s buoyant balance sheet.
"The [initial public offering] 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.”
Al Jaber said the $200.1m shareholder payout ratio puts the company “near the top of major listed companies in the region”.
In addition, ADNOC Distribution is “ahead of schedule” in its 2017 growth strategy geared toward offering customers more choice, service, and convince, Al Jaber said. Despite the healthy position, he warned the companynot to be complacent.
“The company’s management must continue driving ahead with its growth strategy, while also changing the company’s culture, so that every employee is more performance-driven and even more customer-focused”
In a bid to be more efficient, ADNOC plan to reduce capital expenditure on new stations from 2019 by 40%.