Adnoc Distribution announces Dhs1.285b dividend for H2-2024

Adnoc Distribution on Wednesday announced shareholder approval of all agenda items at its Annual General Assembly Meeting (AGM), including the shareholder approval of a final cash dividend of $350 million (Dhs1.285 billion) for the second half of 2024 to be distributed in April 2025.

This brings the total annual dividend for 2024 to $700 million (Dhs2.57 billion), yielding 6.1 per cent, based on the 25th March 2025 closing share price of Dhs3.39, in line with the company’s 2024-28 dividend policy of maintaining annual payouts of $700 million or a minimum of 75 percent of net profit, whichever is higher.

Dr Sultan Ahmed Al Jaber, Chairman of Adnoc Distribution, said, “Financially, 2024 was another record-breaking year. We delivered against our five-year strategy, achieving significant milestones that strengthened our market position and set the stage for long-term success. For the second consecutive year, our EBITDA surpassed $1 billion, driven by record fuel volumes-which increased by nearly 9 percent-and sustained non-fuel retail growth, which have allowed us to deliver strong shareholder returns.”

In 2024, Adnoc Distribution unveiled a five-year growth strategy underpinned by commitments to domestic growth, building international platforms, and future-proofing its business. By successfully executing this strategy, the company achieved a record EBITDA of $1.05 billion (Dhs3.86 billion) in 2024, a 5 percent year-on-year increase driven by record fuel volumes, strong non-fuel retail growth, and higher contributions from its operations in Saudi Arabia and Egypt.

The 2024 dividend reflects the company’s ability to generate strong free cash flow, which totalled $756 million (Dhs2.78 billion) in 2024.

Since its IPO in 2017, the company has distributed a total of $4.8 billion (Dhs17.4 billion) in dividends and delivered 92 percent in total shareholder returns.

This year’s dividend distribution of $700 million marks a 3.5x increase from the $200 million distributed in ADNOC Distribution’s first year as a listed company.

Bader Saeed Al Lamki, CEO of Adnoc Distribution, said, “Adnoc Distribution is committed to leading the way for the future of mobility and convenience retail, as evidenced by our commitment to expanding our international operations and prioritising high-growth areas.”

He added that throughout 2025, the company will continue to drive towards our five-year strategic objectives, including 1,000 service stations across our network, increasing non-fuel transactions by 50 percent, and expanding the E2GO network to 500 EV charging points across the UAE by 2028.

In 2025, ADNOC Distribution is targeting the installation of approximately 100 additional fast and super-fast EV charging points across the UAE as part of its commitment to future-proofing and building the future of mobility.

In the Year of Community, Adnoc Distribution is also exploring new ways to position its service stations as more than just functional stops, redefining them as welcoming spaces at the heart of the communities they serve.

The company aims to double the number of properties occupied by top international and regional food and beverage brands by the end of the year, compared to the end of 2023.

By 2028, Adnoc Distribution seeks to grow the number of Adnoc Oasis convenience stores by 25 percent, increase non-fuel transactions by 50 percent and scale directly-operated franchise stores to 50 or more locations - a strategy is expected to allow for a 2.5-fold increase in property yield compared to traditional rental agreements.

The company is targeting 1,000 service stations across its network by 2028 and aims to add 40-50 in 2025, with 30-40 of these to be located in Saudi Arabia.

In 2024, Adnoc Distribution reached a milestone of 100 service stations in the Kingdom by deploying a smart Dealer-Owned, Company-Operated (DOCO) model. This CAPEX-light, scalable approach involves partnering with local dealers who own service stations, while Adnoc Distribution manages operations.

By 2029, Adnoc Distribution targets at least 300 stations across the Kingdom, positioning the company among the top five fuel and convenience retailers in the Saudi market.

Adnoc Distribution sees strong growth in 2025, with planned CAPEX of $250-300 million. Through AI-driven data analytics and personalised engagement, the company is reinforcing its commitment to digital transformation, strengthening its position as the UAE’s leading multi-energy mobility retailer while expanding internationally in a disciplined manner.

A few days earlier, Adnoc Gas plc and its subsidiaries confirmed shareholder approval at its Annual General Meeting (AGM) to distribute $3.41 billion in full-year dividends for 2024, including a final dividend payment of $1.706 billion scheduled for distribution in the second quarter of 2025.

WAM