Adnoc Distribution said that its Board of Directors has approved an interim dividend payment to shareholders for the first six months of 2021 of AED1.285 billion (10.285 fils per share), equivalent to $350 million.

This is the first payment in what is expected to be a full-year 2021 dividend payment of AED2.57 billion (AED20.57 fils per share), consistent with the company’s dividend policy, reported Emirates News Agency WAM.

This would translate to a 4.9% annual dividend yield for 2021 (based on a share price of AED4.16 as of 30 September 2021). As per the company’s approved policy, the second and final dividend for 2021 is expected to be paid in April 2022, subject to the Board of Directors’ recommendation and shareholders’ approval.

Since IPO, the company has consistently increased cash payback to its shareholders with dividend of AED1.47 billion for 2018, AED2.39 billion for 2019 and AED2.57 billion for 2020. During its General Assembly meeting in March 2021, the company reiterated its dividend policy for 2021, with dividend of AED2.57 billion, and announced an amendment to its dividend policy for 2022, setting a minimum of AED2.57 billion dividend for 2022 (compared to minimum 75% of distributable profits as per previous policy).

The amended dividend policy provides further visibility of payback to shareholders until April 2023. The dividend policy for the years thereafter remains unchanged at a dividend equal to at least 75% of distributable profits. Adnoc Distribution expects to continue to pay half of the annual dividend in October of the relevant year and half in April of the following year. Dividend payments remain subject to the discretion of the Board of Directors and the approval of shareholders.

Engineer Bader Saeed Al Lamki, Chief Executive Officer, Adnoc Distribution said: "Our progressive dividend policy demonstrates our commitment to our shareholders, as we advance our strategic priorities of steady and sustainable growth, enhanced customer experience and attractive capital returns.

"Today, Adnoc Distribution shares offer an attractive 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. With our resilient business model, we are confident in our ability to pay an attractive dividend to our shareholders, while also maintaining significant capacity to deploy capital through a disciplined investment strategy, aimed at continuing our efforts to expand our fuel station network, as well as investing in our non-fuel and international business expansion."