Adnoc Drilling approves $325m cash dividend for 2021

Company is on track to achieve a 5% annual growth in dividends over next five years, chairman Dr Sultan Al Jaber says

An Adnoc drilling rig in action. The company was officially listed on the Abu Dhabi Securities Exchange last year. Photo: Adnoc

Abu Dhabi National Oil Company’s drilling subsidiary, Adnoc Drilling, approved a cash dividend of $325 million, or 7.46 fils per share, for the fiscal year ended on December 31 as its profits rose.

This brings the total dividend to $685m for last year, the company said in a statement on Wednesday.

“Our shareholders’ approval of the very attractive 2021 final dividend of $325m in Adnoc Drilling’s inaugural AGM [annual general meeting] 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.

“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.”

In February, Adnoc Drilling reported a 6 per cent rise in its full-year 2021 net income on the back of higher revenue. Net profit for the 12-month period climbed to $604m.

Revenue for the reporting period rose to $2.27 billion from $2.09bn at the end of 2020. The company attributed the rise in revenue to additional drilling services provided to Adnoc, Adnoc Onshore and Adnoc Offshore operations.

The company remains committed to a progressive dividend policy and “we remain firmly on track to deliver on our objective to achieve 5 per cent annual growth in our dividend over the next five years”, Dr Al Jaber said.

Adnoc Drilling raised more than $1.1bn in September from its initial public offering.

It is one of the largest drilling companies in the Middle East, operating more than 105 onshore, offshore and island rigs. The company, which began operations in 1972, has expanded its fleet of rigs, adding more than 65 since 2010, in line with the growth in oil and gas production capacity at Adnoc.

“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 while ensuring we continue to deliver long-term value to our shareholders,” Abdulrahman Al Seiari, chief executive of Adnoc Drilling, said.