Abu Dhabi – Mubasher: The shareholders of ADNOC Drilling Company greenlighted the new progressive dividend policy for 2024-2028, which will see dividends grow by at least 10% annually.

The expected cumulative minimum yield from the new policy is more than 27%, according to a press release.

At least $4.80 billion will be disbursed to shareholders over the four years. Meanwhile, the board members may approve additional dividends over and above the progressive dividend policy after considering free cash flow accretive growth opportunities.

The cash dividends are expected to be paid semi-annually with a final dividend distributed to shareholders in the first half (H1), and the payment of the interim dividend in H2 of each fiscal year.

Abdulmunim Saif Al Kindy, Vice Chairman of ADNOC Drilling, said: “The approval of this enhanced dividend policy reflects ADNOC Drilling's commitment to delivering increasing value to shareholders, enabled by an accelerated and multi-faceted growth strategy that embraces artificial intelligence, digitization, and advanced technologies both in the UAE and internationally.”

“ADNOC’s recent placement of an additional 5.50% of ADNOC Drilling’s share capital means there is now a greater number of shareholders to benefit from these enhanced returns,” Al Kindy added.

Through its strategic joint venture (JV) with Alpha Dhabi Holding, Enersol, ADNOC Drilling aims to acquire and invest in global energy technologies, bolstering a scalable technology ecosystem to enhance market value and foster operational efficiencies.

Enersol recently acquired a 67.20% controlling stake in Gordon Technologies, which is subject to customary regulatory approval and is in the final stages of two additional transactions.

In the first quarter (Q1) of 2024, ADNOC Drilling posted 26% higher net profits after tax at $274.61 million, compared to $218.68 million in Q1-23.