ADNOC Drilling Approves $788 Million Dividend For 2024 Amid Strong Financial Performance

ADNOC Drilling Company PJSC has confirmed that shareholders approved all agenda items at its Annual General Meeting. This includes the final cash dividend payment for the year ending 31st December 2024. The company reported a significant increase in full-year revenue, reaching $4.034 billion, a 32% rise from the previous year. Additionally, its EBITDA hit a record high of $2.01 billion, marking a 36% increase year-on-year.

Since ADNOC Drilling's listing on ADX in 2021, its net profit has more than doubled, reaching $1.30 billion by 2024. The company is leveraging its strong balance sheet to pursue strategic growth opportunities and maximise shareholder value over the long term. Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, stated, "Our record-breaking financial performance and dividend reflect ADNOC Drilling’s strong momentum as the world’s fastest growing energy services company."

The approved final cash dividend for 2024 amounts to $394 million (approximately 9.05 fils per share). This brings the total dividend for the year to $788 million (around 18.1 fils per share), representing a 10% increase compared to 2023. Shareholders of record as of 27th March 2025 will receive this payment on or around 11th April 2025.

Looking forward, ADNOC Drilling anticipates increasing dividends to at least $867 million in 2025 and reaching at least $1.15 billion by 2028. This aligns with their progressive dividend policy, which allows the Board discretion to distribute additional dividends beyond this minimum threshold.

The company's growth strategy is supported by fleet expansion and projected revenue increases. In terms of returns, ADNOC Drilling achieved over a 20% return on average capital employed (ROACE) and surpassed a 30% return on equity (ROE) in 2024.

In addition to financial growth, ADNOC Drilling plans to enhance operational capacity by increasing its rig count to over 148 by 2026 and more than 151 by 2028. The introduction of advanced rigs equipped with AI technologies will improve efficiency and strengthen its oilfield services segment.

Regional Expansion and Strategic Partnerships

ADNOC Drilling continues regional expansion efforts with extended contracts in Jordan and prequalification in Kuwait and Oman for further growth in 2025. Enersol, a joint venture with Alpha Dhabi, has announced acquisitions worth approximately $800 million to acquire majority stakes in four tech-enabled oilfield service companies.

Turnwell, another joint venture with SLB and Patterson-UTI, has delivered an accelerated total of 30 wells so far. It aims to enhance efficiencies across the value chain while enabling Abu Dhabi's unconventional resource recovery to meet global energy demands.

Financial Guidance for Upcoming Years

Following record financial results in 2024, ADNOC Drilling has provided guidance for full-year 2025. The company expects total revenue between $4.6 billion and $4.8 billion and EBITDA ranging from $2.15 billion to $2.3 billion with margins between 46% and 48%. Net profit is projected between $1.35 billion and $1.45 billion with margins from 28% to 30%.

The company also anticipates CapEx between $0.35 billion and $0.55 billion, free cash flow excluding M&A between $1.3 billion and $1.6 billion, and maintains a conservative leverage target of up to two times Net Debt/EBITDA.

ADNOC Drilling's medium-term guidance projects FY2026 revenue around US$5 billion with conventional drilling margins exceeding half of revenues while oilfield services margins range from 22% to26%. Maintenance CapEx is expected at $200-$250 million annually excluding organic or inorganic growth investments.

The company's strategic approach positions it well for continued financial success while maintaining operational excellence through technological advancements across its operations globally.

With inputs from WAM