ADNOC Distribution said it has delivered on its promises to customers in 2020 by increasing its service station network, modernising its ADNOC Oasis convenience stores and offering customers greater convenience.
Bringing convenience closer to customers was a key driver of the company’s 2020 expansion, with 64 new stations opened across the UAE - a ten-fold increase in delivery compared to 2019 and ahead of the company’s guidance to market of 50-60 new stations.
The year saw a significant increase in ADNOC Distribution’s Dubai network, with 20 new service stations opened. The stations are situated in the heart of commercial and residential areas, including Business Bay, Nad Al Sheba, Al Barsha, and Satwa as well as the first Dubai ‘ADNOC On the go’ at Al Yufra. The ambitious rollout has already seen ADNOC Distribution more than triple its Dubai footprint, from six service stations at the start of 2020 to 26 stations at the end of the year.
New station concept, ‘ADNOC On the go’, provides neighborhoods and communities with access to fuel and retail in locations where traditional stations would be impractical. A total of 38 were opened in 2020 across the country.
In addition, international growth was accelerated with the announcement that the Company had made the execution of a definitive agreement to acquire 15 service stations in the Kingdom of Saudi Arabia, reaffirming its commitment to expansion in the Kingdom, and in the region. The acquisition is subject to certain conditions (including obtaining regulatory approvals) and stems from ADNOC Distribution’s long term smart growth strategy which has led it becoming the UAE’s largest fuel and convenience retailer. The new stations are located in the eastern region, with sites dedicated to both highway commuters as well as in-community convenience. The locations will be refurbished in line with ADNOC Distribution’s endorsed world-class brand standards and staff will be trained to adhere to the Company’s renowned service excellence to offer high quality fuel and retail services to customers, including convenience stores.
Although a challenging year, 2020 saw a continual drive forward with delivery and to provide added value to both customers and shareholders.
The Company’s 2020 dividend policy is set to continue with dividend of AED 2.57 billion, representing an increase of 7.5% compared to 2019, subject to Board and shareholder approval.
At the Annual General Assembly meeting in March 2020 the shareholders approved amendments to the dividend policy for 2021 onwards, setting a AED 2.57 billion dividend for 2021 (amended from a minimum 75 per cent of distributable profits as per previous policy) and a dividend equal to at least 75% of distributable profits from 2022 onwards, in recognition of the Company’s strong financial position at the end of 2019 and confidence in the Company’s growth prospects and cash flow generation ability going forward.
In addition, 2020 saw the successful placement an additional 10 percent of ADNOC Distribution shares to institutional investors on the Abu Dhabi Securities Exchange (ADX), a significant milestone. A total of 1.25 billion shares, valued at $1 billion, was the largest block placement of a publicly listed GCC company and leverages on significant investor demand for ADNOC Distribution shares, driven by its attractive value proposition.