ADNOC Distribution agrees to buy 20 service stations in Saudi Arabia

DUBAI (Reuters) - Abu Dhabi’s ADNOC Distribution said on Monday it has executed two agreements to acquire 20 service stations in Saudi Arabia for 56.9 million dirhams ($15.5 million), increasing its total network in the kingdom to 37.

The company also reported a 9.7% rise in 2020 net profit to 2.43 billion dirhams, above analysts mean forecast of 2.28 billion, according to Refinitiv data.

ADNOC Distribution also said its board has recommended amendments to the dividend policy, proposing a minimum of 2.57 billion dirhams dividend for 2022 compared to the current policy of a minimum 75% of distributable profits.

This proposal will be presented to the company’s shareholders at the upcoming annual general assembly meeting, it said.

“ADNOC Distribution is well placed to continue building on recent success, in the UAE (United Arab Emirates) and beyond, in the year ahead and remains on track to reach EBITDA target of at least $1.0 billion by 2023,” said the company’s acting CEO Ahmed Al Shamsi in a statement.

($1 = 3.6728 UAE dirham)

Reporting by Saeed Azhar; Editing by Krishna Chandra Eluri