Adnoc Distribution announced Thursday that its board of directors approves the distribution of interim dividend payments of AED 1.285 billion (10.285 fils per share) for the first half of 2021, equal to $ 350 million.
This is the first batch of total dividends for 2021, which is expected to amount to AED 2.57 billion (20.57 fils per share), according to the company’s dividend policy. Which represents a 4.9% dividend yield for the year 2021, based on the price of 4.16 fils per share as at 30 September 2021.
Based on the company’s approved policy, the second and final part of the 2021 earnings is expected to be paid in April 2022, in compliance with Board recommendations and shareholder approval.
Since the initial public offering, the company’s dividends to its shareholders have increased, reaching 1.47 billion dirhams in 2018 and in 2019 the company distributed profits of 2.39 billion dirhams, while dividends in 2020 amounted to 2.57 billion dirhams.
During the company’s general meeting held in March 2021, ADNOC Distribution confirmed its dividend policy for the year 2021, with a dividend of 2.57 billion dirhams. And announced the modification of the dividend policy for the year 2022, specifying dividends of a value of no less than 2.57 billion dirhams for the year 2022, against a minimum of 75% of the dividends distributable under the previous policy. , which offer shareholders clear and rewarding returns through April 2023.
The dividend policy for subsequent years will remain unchanged, in measures no less than 75% of distributable profits.
The approved dividend policy adjustments reflect the company’s strong financial position at the end of 2020 and confidence in its growth prospects and ability to generate strong cash flow.
Since the initial public offering in 2017, ADNOC Distribution has continued to implement its growth strategy, expanding in competitive markets and opening several new offices in Dubai e in Saudi Arabia.
The company has focused on improving the customer shopping experience in the retail sector, through the refurbishment of retail stores in the UAE. It introduced shopping services online and launched customer reward programs based on collecting points.
The flexibility and focus on continued growth has enabled the company to adopt an upward dividend policy, which reflects its growth prospects and its ability to achieve strong and stable cash flows.
Read More About: Business News