Adnoc Drilling Approves $788 Million Dividend for 2024, with Plans for Continued Growth and Increased Payouts

Company’s Record-Breaking Performance Sets the Stage for Progressive Dividend Policy, Stronger Regional Expansion, and Advanced AI-Enabled Rig Technology.

Adnoc Drilling Declares $788 Million Dividend for 2024 Following Strong Financial Results

Abu Dhabi – Adnoc Drilling has announced a bumper $788 million dividend for the year ending December 31, 2024, underpinned by its record-breaking financial performance. This marks a significant achievement for the company, which continues to see robust growth following its listing on the Abu Dhabi Securities Exchange (ADX) in 2021.

Record Financial Results and Continued Growth

The company posted an impressive $4.034 billion in full-year revenue, reflecting a 32% increase year-on-year. Its EBITDA surged to $2.01 billion, up 36% from 2023. In addition, net profit more than doubled, reaching $1.30 billion in 2024. These stellar figures demonstrate Adnoc Drilling’s strong market positioning, driven by its operational efficiency, fleet expansion, and cutting-edge technology investments.

Abdulrahman Abdulla Al Seiari, CEO of Adnoc Drilling, emphasized the company’s solid momentum. “Our record-breaking financial performance and dividend reflect Adnoc Drilling’s strong momentum as the world’s fastest-growing energy services company. With a 10% dividend increase to $788 million in 2024 and a commitment to further increase it by at least 10% in 2025 and beyond, we continue to deliver exceptional value to our shareholders while investing in the future.”

Progressive Dividend Policy and Future Outlook

The proposed dividend for 2024 will consist of $394 million as an interim payment, translating to approximately 9.05 fils per share, with the full payout amounting to $788 million (around 18.1 fils per share). The dividend is set to be paid on or around April 11, 2025, to all shareholders on record by March 27, 2025.

Looking ahead, Adnoc Drilling is committed to maintaining a progressive dividend policy, which includes a planned increase to at least $867 million for 2025. By 2028, the company aims to achieve a total payout of at least $1.15 billion, driven by a minimum 10% year-on-year dividend increase. The company’s board of directors will retain the discretion to distribute additional dividends above the minimum floor, further enhancing value for shareholders.

A Focus on Growth and Technological Innovation

Adnoc Drilling’s growth trajectory is supported by its expanding rig fleet, which is expected to increase to over 148 rigs by 2026 and 151 rigs by 2028. The introduction of AI-enabled rigs is set to significantly enhance operational efficiency, particularly within the company’s oilfield services (OFS) segment. Additionally, the company has been expanding its footprint regionally, having extended its contracts in Jordan and secured prequalification in Kuwait and Oman for further growth.

Strategic Acquisitions and Future Expansion Plans

In line with its expansion strategy, Adnoc Drilling has invested heavily in strategic acquisitions. Its joint venture with Alpha Dhabi, known as Enersol, has announced the acquisition of a majority stake in four tech-enabled oilfield service companies, further solidifying the company’s position as an AI-centric investment entity. The company’s joint venture with SLB and Patterson-UTI, Turnwell, is driving operational efficiencies and enabling the recovery of Abu Dhabi’s unconventional energy resources to meet growing global energy demand.

Looking forward to 2025, Adnoc Drilling has set ambitious revenue targets between $4.6 to $4.8 billion, with EBITDA projected between $2.15 billion and $2.3 billion. Net profit is expected to range from $1.35 billion to $1.45 billion, with a free cash flow projection of up to $1.6 billion.

Positioned for Long-Term Success

With its proven ability to generate strong financial returns, commitment to shareholder value, and focus on technological innovation, Adnoc Drilling remains well-positioned for long-term success. The company’s growing fleet, regional expansion, and strategic investments in cutting-edge technologies are laying the foundation for continued leadership in the global energy services sector.

As the company looks ahead, it aims to sustain its growth momentum, ensure long-term profitability, and maintain its commitment to sustainability and operational excellence, while continuing to maximize returns for its shareholders.