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ADNOC L&S to pay $65m cash dividends for Q2-23

ADNOC L&S to pay $65m cash dividends for Q2-23
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Abu Dhabi – Mubasher: The board of ADNOC Logistics & Services (ADNOC L&S) greenlighted an interim cash dividend of $65 million (AED 239 million) for the second quarter (Q2) of 2023, according to a press release.

The ADX-listed company will pay out a dividend of 3.20 fils per share to the shareholders 30 days from the board’s approval on 9 October 2023.

Last entitlement and record dates of the Q2-23 dividends will be 17 and 19 October 2023, respectively.

At the time of listing, ADNOC L&S indicated that it will disburse dividends amounting to $130 million (AED  477 million) for the second half (H2) of 2023.

Abdulkareem Al Masabi, CEO of ADNOC L&S, said: "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,” Al Masabi continued.

From 2024 onwards, ADNOC L&S expects to increase its dividends per share on an annual basis by at least 5% over the medium term.

The UAE group plans to distribute cash dividends on a semi-annual basis, with an initial payment for the H1 results to be paid during Q4-23, while the second payment will be disbursed in Q2-24.

During Q2-23, the company secured a $975 million deal from ADNOC Offshore for the construction of an artificial island.

It also increased its fleet by taking delivery of three new build dual-fuel engine very large crude carriers (VLCCs), in addition to adding six owned and two chartered-in self-propelled jack-up barges to its fleet.

In the January-June 2023 period, ADNOC L&S recorded net profits valued at $307 million, an annual leap of 327% from $72 million.