The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
ABU DHABI/ WAM
ADNOC Logistics and Services plc (ADNOC L&S) on Monday announced that its Board of Directors has approved the distribution of an interim cash dividend of $65 million (AED239 million) for Q2 2023, equivalent to 3.2 fils per share.
The interim dividend will be paid to shareholders who own ADNOC L&S shares on the record date of 19 October 2023. The dividend, in relation to H2 2023 is anticipated to be paid in Q2 2024. At the time of listing the Company indicated a H2 2023 dividend of $130 million (AED477 million).
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “The planned interim distribution of ADNOC L&S’ cash dividend underscores our strong performance in the first half of the year and is testament to our unwavering commitment to providing value to our shareholders. Our solid cash generation and net cash position give us ample resources to sustain our ongoing operational requirements and facilitate continued investment in long-term, value-enhancing growth opportunities. Looking ahead, we remain focused on delivering on our smart growth strategy which includes expanding our geographical reach, exploring new revenue streams, and unlocking additional value for our shareholders.”
From fiscal year 2024 onwards, ADNOC L&S expects to increase annual dividend per share on a progressive basis by at least 5% per annum over the medium term, while regularly reviewing the policy considering value accretive growth opportunities. The Company intends to pay dividends on a semi-annual basis, with an initial payment for the first-half results being paid in the fourth quarter of that year, and a second payment following second-half results being paid in the second quarter of the following calendar year.
ADNOC L&S continues to make significant strides in executing its smart growth strategy by expanding into new business verticals, creating fresh revenue streams, and continuing to strategically expand its fleet. During Q2 2023, the Company secured a $975 million Engineering, Procurement and Construction (EPC) contract from ADNOC Offshore for the construction of an offshore artificial island, and has grown its fleet by taking delivery of three newbuild, LNG dual-fuel Very Large Crude Carriers (VLCCs) and adding six owned and two chartered-in self-propelled Jack Up Barges to its fleet.