ADNOC Drilling approves $325 million cash dividend for 2021

The drilling subsidiary of Abu Dhabi National Oil Company, ADNOC Drilling, has approved a cash dividend of US$325 million that works out to 7.46 fils per share, for the 2021 fiscal and projected a 5 percent annual dividend per share growth for the next five years.

The total dividend paid out by ADNOC Drilling amounted to $685 million for last year on the back of strong revenues, the company said in a statement on Wednesday. The 2021 results saw revenues increase by 8.2 percent, with an EBITDA of more than $1 billion and 6 percent in net income growth, the company said.

“Our shareholders’ approval of the very attractive 2021 final dividend of $325 million in ADNOC Drilling’s inaugural AGM is cemented by the company’s strong full-year results and its unique role as ADNOC’s sole drilling services provider,” Dr Sultan Al Jaber, Chairman of ADNOC Drilling, said in a press statement.

“ADNOC Drilling will continue to deliver the thousands of wells required for ADNOC’s significant production capacity growth targets, resulting in ongoing demand for drilling services and enabling sustainable growth while ensuring robust future returns for our shareholders,” he added.

Set up in 1972, ADNOC Drilling filed for an IPO in October last year, receiving an overwhelming response from local and international investors.

“At the start of 2021, we set out to achieve disciplined growth, deliver on our program for improved operational efficiency, maintain core financial strength, and to list ADNOC Drilling on Abu Dhabi Securities Exchange (ADX). I am pleased to report that we have accomplished all these strategic priorities,” Abdulrahman Abdalla Al Seiari, Chief Executive Officer of ADNOC Drilling, said in the statement.

“Looking across 2022, we expect to accelerate our growth trajectory, driven by our new world-class rigs coming online, continued investments in integrated drilling services and technology, and a laser focus on driving cost efficiencies whilst ensuring we continue to deliver long-term value to our shareholders,” he added.