ADNOC Drilling, the largest national drilling company in the Middle East by rig fleet size, has announced a record dividend of 7.83 fils per share or $341m for the second half of 2022, approved by its shareholders. This brings the full-year 2022 dividend to 15.67 fils per share or $682.5m, a 5% increase from 2021. The company has committed to a progressive dividend policy, with an expected annual growth of up to 5% per annum on a dividend per share basis over the next four years, reflecting its strong underlying cash flow.
ADNOC Drilling’s full-year net profit for 2022 surged by 33% to $802m, driven by new rigs entering its operational fleet and robust growth in its onshore and oilfield services businesses. The company’s revenues increased by 18% to $2.67bn, with a fleet utilization rate of 96%. ADNOC Drilling’s capital expenditure surged by 62% to $942m in 2022, and it added 16 new drilling units to its fleet to meet customer demand.
In March 2023, the company announced that it would acquire ten new-build hybrid power land drilling rigs for $252m to increase its onshore capacity and meet ADNOC Group’s accelerated production capacity target. ADNOC Drilling expects a revenue growth of up to 20% in 2023, projecting between $3bn and $3.2bn in revenue, and a net profit of $850m to $1bn. The drilling company listed on the Abu Dhabi Securities Exchange in 2021 after its majority shareholder, ADNOC, raised $1.1bn from investors through an initial public offering.