ADNOC Distribution has made a disclosure on the Abu Dhabi Stock Exchange, ADX, in that a shareholder representing more than 10 percent of the share capital has issued a new resolution for inclusion in the company’s Annual General Meeting to take place on Tuesday, 31st March, 2020.
In a press release issued by ADNOC Distribution on Thursday, the new resolution sets out that company’s Dividend Policy for 2021 be set at a minimum fixed amount of AED2.57 billion (US$700 million). It will be equivalent to minimum 20.57 fils per share, half of which is expected to be paid in October 2021 and half of which is expected to be paid in April 2022.
This replaces the current policy of dividends amounting to minimum 75 percent of distributable profits for 2021.
The resolution also proposes paying shareholders a minimum of 75 percent of distributable profits in the form of dividends for each fiscal year from 2022 onwards.
According to the notice, all other sections of the dividend policy remain the same.
The proposed amendment to the dividend policy would lead to fixed dividend visibility for shareholders for 2020 and 2021.
The requesting shareholder expressed its rationale for the request to amend the dividend policy 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.
ADNOC Distribution also announced that it will be holding its Annual General Meeting virtually, in respect of the current Coronavirus health measures.