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ADNOC Drilling posts 26% higher profits in Q1-24; new dividends policy unveiled

ADNOC Drilling posts 26% higher profits in Q1-24; new dividends policy unveiled
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ADNOC Drilling
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Abu Dhabi – Mubasher: ADNOC Drilling Company recorded an annual leap of 26% in net profit after tax to $274.61 million during the first quarter (Q1) of 2024, versus $218.68 million.

The company witnessed 24% year-on-year (YoY) higher revenues at $885.86 million during the January-March 2024 period, compared to $716.08 million.

Basic and diluted earnings per share (EPS) increased to $0.017 in Q1-24 from $0.014 in Q1-23, according to the income statement.

The total assets amounted to $6.80 billion at the end of March 2024, up from $6.74 billion as of 31 December 2023.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) hiked by 31% YoY to $437 million in Q1-24, backed by strong operational performance.

Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, commented: “Our multi-faceted strategy of enabling ADNOC’s conventional and unconventional production capacity growth to meet the world’s growing demand for energy will further transform the business in 2024-onwards.”

“The $1.70 billion contract award represents a transformational opportunity as the UAE’s world-class unconventional energy resources will require many thousands of wells and we are in a prime position to deliver them,” Al Seiari continued.

He noted: “Aligned to this is the investment in, and adoption of, artificial intelligence and advanced technologies through our strategic joint venture, Enersol, that has a $1.50 billion mandate to invest in and acquire global energy technologies.”

New Dividend Policy 2024-28

The board members recommended a new policy to increase dividends by at least 10% annually on a dividend per-share basis over the next five years until 2028.

Furthermore, the board may consider additional dividends over and above the progressive dividend policy after taking into account growth opportunities while maintaining net debt/EBITDA up to 2x, excluding transformative mergers and acquisitions (M&A).

Meanwhile, the new dividend policy is subject to the approval of the shareholders during the coming general assembly meeting, which is to be determined in coordination with the Securities and Commodities Authority (SCA).

In the 12-month period that ended on 31 December 2023, the ADX-listed firm logged net profits valued at $1.03 billion, higher by 29% YoY than $801.80 million.