UAE’s ADNOC Drilling Company has reported strong financial results for the first quarter ending on March 31, 2024. The company has once again surpassed market expectations for the third consecutive quarter, achieving a record-breaking revenue of AED3.25 billion ($886 million), which represents a remarkable 24 percent year-on-year increase.
The Offshore Jack-up and Oilfield Services (OFS) segments played a significant role in driving the revenue growth. The Offshore Jack-up segment saw a year-on-year increase of 51 percent, while the OFS segment experienced a 16 percent increase.
ADNOC Drilling’s strong operational performance resulted in a year-on-year growth of 31 percent in EBITDA, reaching $437 million.
This robust performance has led to an expansion of the year-on-year EBITDA margin by 49 percent.
Additionally, the net profit for the quarter amounted to AED1 billion ($275 million), reflecting a substantial 26 percent year-on-year increase.
Our record first quarter results see ADNOC Drilling beating market expectations for a third consecutive quarter. 2024 is off to a great start, and with a new, transformational contract for the recovery of unconventional energy resources and a plan to boost shareholder returns… pic.twitter.com/di5uDNwdKr
— ADNOC Drilling (@ADNOCDrilling) May 13, 2024
Enhanced, progressive dividend policy
To further enhance shareholder value, the Board of Directors has proposed a new and progressive dividend policy.
Under this policy, dividends are expected to grow by a minimum of 10 percent annually on a dividend per share basis. Moreover, this growth is projected to occur over the next five years, covering the period from 2024 to 2028.
Furthermore, the Board of Directors retains the discretion to consider additional dividends beyond the progressive dividend policy. This takes into account growth prospects while maintaining net debt/EBITDA at a maximum of 2x, excluding transformative mergers and acquisitions.
Additionally, the implementation of the new dividend policy is subject to approval by the shareholders at an upcoming General Shareholder Meeting.
The exact date of this meeting will be communicated in the near future.
As per the policy, dividends will be paid semi-annually. A final dividend will be distributed to shareholders in the first half of each fiscal year, and the interim dividend will be paid in the second half.
For more news on banking & finance, click here.
