ADNOC Distribution is a unique regional investment story with high margins, growth potential and attractive dividend policy.
Here are the key factors that combine to create a compelling investment opportunity:
UAE national leader: #1 fuel distributor and consumer retailer in the UAE with iconic branding at strategically located sites, benefitting from a strong relationship with ADNOC Group and the AA/Aa2 rated sovereign.
Resilient UAE fuel retail platform: Highly predictable cash generative core business with stable regulated unit fuel margins and low exposure to oil price volatility.
High potential fuel and non-fuel growth: defined domestic expansion strategy, with a focus on under penetrated Dubai market. Growing non-fuel business by developing innovative strategies, superior customer experience and digital leadership.
World class efficiency: Proven track record of delivering operational excellence, efficiencies and optimization throughout organization.
Attractive shareholder return: Progressive and sustainable dividend policy offering high visibility, with dividend expected to be USD 700 million in 2020 and 2021, and a minimum 75% of distributable profits from 2022 onwards*.
Wholesale fuel position diversifies revenues: Wholesale commercial fuel and aviation position with strong growth potential provides diversified revenue sources.
Significant future strategic potential: Platform to pursue organic and potential M&A opportunities in regional markets and beyond, backed by ample liquidity and strong balance sheet.
Experienced and strong management team: Experienced management team focused on executing a focused and deliverable growth strategy to exceed USD 1.0 billion EBITDA by 2023.