ABU DHABI, ADNOC Distribution has delivered on its promises to customers in 2020 by increasing its service station network and modernizing its ADNOC Oasis convenience stores, offering customers greater convenience, together with a fresh, modern environment to make more out of every visit to an ADNOC Service Station.
A total of 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 50 to 60 new stations. The company continued to provide more choices for customers and opened 62 new convenience stores.
The year saw a significant increase in ADNOC Distribution’s Dubai network, with 20 new service stations opened. They 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 at the end of the year.
The new station concept, “ADNOC On the Go”, provides neighbourhoods 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 Saudi Arabia, reaffirming its commitment to expansion there 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 to become 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.
Increasing access to its services was delivered hand-in-hand with an upgrade to the customer experience. A total of 100 ADNOC Oasis convenience stores were refurbished throughout the year, above the market guidance of 80 to 90. Besides, a partnership with Talabat and Carriage meant customers could order online from more than 100 stores across the UAE, with delivery direct to their door.
The company’s 2020 dividend policy is set to continue with a dividend of AED2.57 billion, representing an increase of 7.5 percent 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 an AED2.57 billion dividend for 2021 (amended from a minimum 75 percent of distributable profits as per previous policy) and a dividend equal to at least 75 percent of distributable profits from 2022 onwards, in recognition of the company’s strong financial position at the end of 2019 and confidence in its growth prospects and cash flow generation ability going forward.
Also, 2020 saw the successful placement by ADNOC of 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.
Source: Emirates News Agency