ADNOC Drilling Company has received shareholder approval for all matters discussed at its Annual General Assembly Meeting. This includes the distribution of a final cash dividend of $358 million for the fiscal year ending on December 31, 2023.
The approved dividend for 2023 amounts to $358 million, which is equivalent to 8.22 fils per share. This brings the total dividend for the year to $717 million, or 16.45 fils per share. This represents a 5 percent increase compared to the previous year, 2022. The dividend will further be paid to all record shareholders as of March 21, 2024, on or around April 3, 2024.
ADNOC Drilling shareholders approved a final dividend for the year 2023 of $358 million (8.22 fils per share).
Bringing the total dividend for 2023 to $717 million (16.45 fils per share) representing a 5% year-on-year increase.
The dividend is payable on or around April 3,… pic.twitter.com/k8qnAO29w1
— ADNOC Drilling (@ADNOCDrilling) March 14, 2024
Progressive dividend policy
Additionally, ADNOC Drilling reaffirms its commitment to a progressive dividend policy that reflects its strong underlying cash flow. It anticipates that the annual dividend distribution will grow by at least 5 percent per year on a per-share basis over the next three years, from 2024 to 2026.
The oil-rich region of Abu Dhabi is estimated to hold approximately 22 billion barrels of recoverable unconventional oil resources and 160 trillion standard cubic feet of recoverable unconventional gas resources. Moreover, ADNOC Drilling sees this as a significant opportunity for transformative growth and will focus on this sector as a key segment for future expansion.
Building on its strong performance in 2023, ADNOC Drilling has announced its full-year 2024 and medium-term guidance, reaffirming its commitment to growth. By the end of 2024, the company expects to have a total of 142 owned rigs, including four new lease-to-own land rigs.
Financial projections for 2024
In terms of financial projections, ADNOC Drilling anticipates total revenue for 2024 to be between $3.60 billion and $3.80 billion. The company also expects EBITDA to range from $1.70 billion to $1.90 billion, with a margin range of 48 percent to 50 percent. Net profit is projected to be between $1.05 billion and $1.25 billion, with a margin range of 30 percent to 33 percent.
Furthermore, ADNOC Drilling forecasts its capital expenditure (CapEx) to be in the range of $0.75 billion to $0.95 billion for 2024. The company aims to maintain a leverage ratio, measured by “Net debt/EBITDA,” below 2x in 2024, excluding significant mergers and acquisitions.
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