Abu Dhabi-listed ADNOC Drilling has confirmed an enhanced dividend policy with a minimum 10% annual growth between 2024 and 2028, translating into at least 61% cumulative growth over the next five years.
The new policy is expected to see at least $4.8 billion distributed to shareholders within this period. The expected cumulative minimum yield from the new policy between 2024 and 2028 is more than 27%.
The dividends are expected to be paid semi-annually with a final dividend distributed
to shareholders in the first half, and the payment of the interim dividend in the second half of each fiscal year. The new policy also grants ADNOC’s Board of Directors the ability to approve additional dividends over and above the progressive dividend policy in the coming years.
“The approval of this enhanced dividend policy reflects ADNOC Drilling’s commitment to delivering increasing value to shareholders, enabled by an accelerated and multi-faceted growth strategy that embraces artificial intelligence, digitization, and advanced technologies both in the UAE and internationally,” said Abdulmunim Saif Al Kindy, ADNOC Upstream Executive Director and Vice Chairman of ADNOC Drilling.
ADNOC Drilling is the largest drilling and well completions company in the Middle East by fleet size. Last month, its parent company. ADNOC, completed a $935 million institutional placement of ADNOC Drilling shares. This placement represented 5.5% of ADNOC Drilling’s total issued and outstanding share capital and increased its free float to 16.5%.
The higher free float resulted in a higher weight in FTSE indices and is expected to provide a pathway towards inclusion in the Morgan Stanley Capital International (MSCI) Emerging
Market Index.
ADNOC Drilling is also actively pursuing regional growth. The company recently established a joint venture with Alpha Dhabi, Enersol, ADNOC Drilling to acquire and invest in global energy technologies, fostering a scalable technology ecosystem to
enhance market value and improve operational efficiencies.
