Dubai PR Network, Online Press Release from Dubai and Middle East
 
Business, Banking and Investments(Banking & Investments)
Filter PR by
  

ADNOC Distribution Shareholders Approve New Five-Year Dividend Policy As Company Reinforces Focus On Accelerated Growth

 
ADNOC Distribution Shareholders Approve New Five-Year Dividend Policy As Company Reinforces Focus On Accelerated Growth

 

  • Shareholders approve H2 2023 dividend of AED1.285 billion (10.285 fils per share), bringing 2023 total dividend to AED2.57 billion (20.57 fils per share)
  • ADNOC Distribution has provided shareholders with a 90% return on their investment since its initial public offering in 2017
  • New five-year dividend policy sets annual dividend of $700 million or a minimum of 75% of net profit, whichever is higher
  • Company targets value-accretive domestic and international growth, exploring expansion in new markets
  • Company reaffirms commitment to AI & innovation-enabled growth, customer-centricity, and sustainability while evolving into an international multi-energy, convenience and mobility leader
  • AI and advanced technology enabled a four-year-high customer convenience store conversion rate of 24.7% and a 10% reduction in carbon emissions of fuel delivery truck operations

Abu Dhabi, UAE – March 28, 2024: ADNOC Distribution (ISIN: AEA006101017) (Symbol: ADNOCDIST), the UAE’s largest fuel and convenience retailer, yesterday confirmed shareholder approval of all agenda items at its Annual General Assembly Meeting (AGM), including a new five-year dividend policy and the appointment of new Board members. The Company also reaffirmed its commitment to its new five-year growth strategy enabled by artificial intelligence (AI), digitalization, and advanced technology. 

Dr. Sultan Ahmed Al Jaber, Chairman of ADNOC Distribution, said: “ADNOC Distribution has provided shareholders with a 90% return on their investment since its initial public offering in 2017 through increased market value and dividends, and delivered on its promise of achieving $1 billion in EBITDA for 2023, setting the foundation for our next phase of accelerated growth. The Company continues to target value-accretive domestic and international expansion opportunities, including new markets.”

“ADNOC Distribution was an early adopter of AI to drive efficiencies in its operations and improve customer experience. We will continue to deploy AI and other rapidly evolving technologies to further unlock value for our business, our shareholders and our customers.”

“Based on our confidence in the new strategy and future growth prospects, we have introduced a more rewarding five-year dividend policy that provides long-term payback visibility and dividend upside from future earnings growth. Our new policy mirrors the Company’s sustainable growth trajectory and predictable cash flow while demonstrating attractive shareholder returns.”

The Company’s new dividend policy for 2024-2028 sets an annual dividend of $700 million or a minimum of 75% of net profits, whichever is higher. At the AGM, shareholders approved distributing AED1.285 billion in dividends for the second half of 2023, equivalent to 10.285 fils per share, expected to be paid in April 2024. This brings the total dividend for 2023 to AED2.57 billion, yielding 5.6% based on the share price of AED 3.66 on March 27, 2024.

The new strategy, introduced during an Investor Day in February 2024, underscores the Company’s commitment to domestic growth, international platforms, and future-proofing the business. It positions ADNOC Distribution as a frontrunner in the evolving energy landscape. As part of this accelerated growth strategy, the Company plans to increase the contribution from international operations in Saudi Arabia and Egypt while exploring accretive growth opportunities, supported by a robust balance sheet and strong cash flow generation. This includes additional sectors such as lubricants and LPG, new sustainable transport solutions, and exploring expansion opportunities in new global markets.

Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “Our transparent and highly rewarding five-year dividend policy underscores the inherent strength of our Company, driven by strong cash generation and an ambitious growth strategy. As part of this strategy, we aim to expand our network to 1,000 service stations by 2028, growing non-fuel transactions by 50% and increasing convenience stores by 25%. Additionally, we aim to strategically grow our electric vehicle infrastructure to more than 500 fast and superfast chargers by 2028, a 10-fold increase from 2023. By prioritizing sustainability and leveraging technology and innovation, we are positioning ADNOC Distribution as an international multi-energy mobility and convenience leader.”

Leveraging AI and Advanced Technology

The Company leveraged AI and advanced technology to supercharge growth, improve customer experiences, and introduce new technology-led initiatives across its network. This includes Fill & Go, an AI-enabled license plate recognition system that provides seamless refueling for registered customers. Additionally, it launched the first real-world test of an AI-operated autonomous refueling robotic arm.

AI and data have enabled the Company to tailor hyper-personalized consumer offers through ADNOC Rewards, the UAE’s largest fuel retail loyalty program with nearly two million members, boosting fuel and non-fuel transactions at service stations and contributing to a four-year-high customer conversion rate of 24.7%. That is the percentage of customers who make purchases at ADNOC convenience stores while fueling their vehicles.

The Company also employs AI-predictive technology to improve its fuel distribution operations. Instead of relying solely on scheduled refueling, the AI-driven refueling process accurately predicts fuel demand at different service stations, significantly reducing instances of fuel shortages, thereby enhancing operational efficiency. It also supports the Company’s decarbonization and sustainability efforts by optimizing fuel truck delivery, resulting in a 10% reduction in carbon emissions.

Going forward, ADNOC Distribution plans to further integrate AI across its convenience, fuel, and non-fuel operations and customer services.


Posted by : DubaiPRNetwork.com Editorial Team
Viewed 14116 times
PR Category : Banking & Investments
Posted on : Thursday, March 28, 2024  2:27:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : UAE and Kenya sign Investment Memorandum to advance digital ...
Next Story : Hotpack Global MD emerges Founding VC of Paper and Tissue Bu...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Watches & Wonders 2024 Unico: Hublot's Manufacture Calibre [45477-Views]
Bremont introduces a new generation of its Supermarine diving watch series [38286-Views]
Mitch Evans Looks For Another Italian Triumph As Formula E Descends On Rimini Debut - Wher... [15785-Views]
Oliver rowland wins misano e-prix opener after antonio felix da costa disqualification [12919-Views]
Victory for Pascal Wehrlein after last Lap Heartbreak for Rowland [11119-Views]
Exclusive Preview Oris Introduces The New Aquis [10967-Views]
Roger Dubuis At Watches & Wonders The Tourbillon in all its Forms [10922-Views]
Khabib's Official Training Gloves Will Be Sold at Tooba Charity Auction in Dubai [10033-Views]
Tag Heuer Monaco Split-Seconds Chronograph [8995-Views]
Formula E and FIA to unveil new gen3 evo race car at upcoming monaco E-prix [6572-Views]
The Tortue Watch: A Perpetually Reinvented Timepiece [6552-Views]
Tag Heuer Monaco Split-Seconds Chronograph: Watches & Wonders 2024 [6375-Views]
South Indian Cinema Megastars Rana Daggubati, Rockstar DSP Akul Balaji, Vijay Raghavendra,... [6027-Views]
Mansour bin Mohammed congratulates Hamdan bin Mohammed on the Qatar-UAE Super Shield crown [5617-Views]
Sivakov takes final stage of Giro D'Abruzzo [5494-Views]
Henry Jacques launches Collection de l'Atelier [5215-Views]
Abt Joins Forces With Lola And Yamaha For Formula E's Ground-Breaking Gen3 Evo Era [4854-Views]
Goodbye to the Grrr-Eight One: Jeep® Brand Announces 2024 Wrangler Rubicon 392 Final Editi... [4727-Views]
Jan Christen takes first professional victory at Abruzzo [4305-Views]
Turkish Airlines closes 2023, carrying 83.4 million passengers with a 23.5% increase in do... [4096-Views]
MoHAP lights up UAE landmarks in blue to mark World Health Day. [4067-Views]
Swiss International School Dubai students get seven-star work experience at Burj Al Arab [4014-Views]
Heritance Aarah Maldives: Your Summer Culinary Getaway [3985-Views]
UAE Participates in 2024 Spring Meetings of IMF and WBG [3801-Views]
Hitachi Energy unveils cutting-edge solutions at Middle East Energy 2024 [3612-Views]
 
RSS Facebook Twitter LinkedDin DubaiPRNetwork.com on Instagram
 
Top Sections
 
Top Stories