ADNOC Distribution has proposed an annual dividend of 2.57 billion dirhams ($700 million) for 2020 and 2021, and a shift to its previous policy to a dividend equal to 75 per cent of distributable profits from 2022 onwards.
ADNOC Distribution’s shareholders will meet on March 31 to vote on the proposal, the company said in a bourse statement. It paid a total dividend of 2.39 billion dirhams in 2019.
The proposal has come from state oil giant Abu Dhabi National Oil Co (ADNOC), which owns 90 per cent of the company. ADNOC Distribution was listed in 2017.
“The requesting shareholder confirmed its continued support of the dividend policy position for 2020, and expressed its rationale for the request to amend the dividend policy for 2021 onwards as being its trust in the company’s strong financial position, the strength of its balance sheet to withstand current market conditions underpinned by low exposure to oil price volatility, and confidence in the company’s ability to deliver on its growth targets,” it said in statement.