ADNOC Drilling Company PJSC has announced that shareholders approved all agenda items during its Annual General Meeting, including the distribution of its final cash dividend for the year ending 31st December 2024.
ADNOC Drilling’s full-year revenue surged to an impressive $4.034 billion, reflecting a remarkable 32 percent increase year-on-year. Additionally, the company’s full-year EBITDA reached a record high of $2.01 billion, marking a 36 percent rise compared to the previous year. Since its listing on ADX in 2021, ADNOC Drilling’s net profit has more than doubled, culminating in $1.30 billion for 2024, according to a statement.
Commitment to smart growth and shareholder value
By leveraging its robust balance sheet, ADNOC Drilling is dedicated to pursuing smart growth, seizing emerging opportunities, and maximizing shareholder value over the long term.
Abdulrahman Abdulla Al Seiari, ADNOC Drilling CEO, stated, “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 percent dividend increase to $788 million in 2024 and a commitment to further increase it by at least 10 percent in 2025 and beyond, we continue to deliver exceptional value to our shareholders while investing in the future.”
Strategic expansion and technological advancements
Our targeted expansion across the region, AI-powered rigs, and cutting-edge oilfield services position ADNOC Drilling for even greater success. As we accelerate innovation through Enersol and unlock Abu Dhabi’s unconventional energy potential through Turnwell, ADNOC Drilling remains at the forefront of the industry—driving efficiency, sustainability, and long-term progressive returns for our shareholders.
The final shareholder-approved cash dividend payment for 2024 amounts to $394 million (approximately 9.05 fils per share). This brings the total 2024 dividend to $788 million (approximately 18.1 fils per share), representing a 10 percent year-on-year increase compared to 2023. The dividend is scheduled to be paid on or around 11th April 2025 to all shareholders of record as of 27th March 2025.
Future dividend expectations
Looking forward, the dividend is anticipated to increase to at least $867 million for 2025, potentially reaching at least $1.15 billion by 2028, based on a minimum 10 percent year-on-year increase, in accordance with the Company’s progressive dividend policy. This policy grants the Board of Directors discretion to distribute additional dividends above this threshold, reaffirming ADNOC Drilling’s commitment to maximizing growth and returns for its shareholders.
Financial and operational success projections
This growth trajectory is underpinned by the Company’s fleet expansion, projected revenue growth, and robust returns, including a return on average capital employed (ROACE) that exceeded 20 percent in 2024, along with a return on equity (ROE) surpassing 30 percent.
Additionally, ADNOC Drilling anticipates substantial free cash flow of up to $1.6 billion in 2025 and net income growth, with an implied payout ratio of less than 65 percent at the dividend floor in 2025. This strategic approach positions ADNOC Drilling for significant financial and operational success in the forthcoming years.
Enhancing operational capacity
In 2025, ADNOC Drilling plans to enhance its operational capacity, projecting a rig count of over 148 by 2026 and more than 151 by 2028. The introduction of advanced rigs equipped with AI-enabled technologies will improve efficiency and strengthen its oilfield services (OFS) segment, providing greater value to customers. Having extended its contract in Jordan and gained prequalification in Kuwait and Oman, ADNOC Drilling continues to pave the way for further regional expansion in 2025.
Strategic joint ventures and acquisitions
To date, Enersol, its joint venture with Alpha Dhabi, has announced acquisitions worth approximately $800 million to acquire majority stakes in four tech-enabled oilfield service companies. Looking ahead, it aims to solidify its position as an AI-centric investment company. Turnwell, ADNOC Drilling’s joint venture with SLB and Patterson-UTI, has delivered an accelerated total of 30 wells to date and continues to drive efficiencies across the value chain, positioning itself to enable the recovery of Abu Dhabi’s unconventional resources to meet global energy demand.
Building on record 2024 financial results, ADNOC Drilling has released its full-year 2025 guidance, reaffirming continued growth. Among the key guidance metrics, in 2025, the Company expects total revenue to range between $4.6 billion and $4.8 billion and EBITDA to be between $2.15 billion and $2.3 billion, resulting in a margin range of 46 percent to 48 percent. Net profit is projected to be between $1.35 billion and $1.45 billion, with a margin range of 28 percent to 30 percent.
Capital expenditure and financial targets
Moreover, ADNOC Drilling anticipates capital expenditures (CapEx) ranging from $0.35 billion to $0.55 billion, free cash flow (excluding M&A) between $1.3 billion and $1.6 billion, and a dividend floor of $0.87 billion, while maintaining a conservative leverage target of up to 2.0x Net Debt / EBITDA.
ADNOC Drilling’s medium-term guidance projects FY2026 revenue of around $5 billion. The company expects a conventional EBITDA margin of approximately 50 percent, with conventional drilling margins exceeding 50 percent and oilfield services margins ranging between 22 percent and 26 percent in the medium term. ADNOC Drilling maintains a conservative long-term leverage target of up to 2.0x Net Debt / EBITDA, with a net working capital target of roughly 12 percent of revenue. Maintenance CapEx is projected at $200 million to $250 million per annum, excluding organic and inorganic growth CapEx. Additionally, the company aims to operate over 148 rigs by 2026 and exceed 151 rigs by 2028.
