Adnoc L&S approves interim dividend of $65m for second quarter

Adnoc Drilling announced an interim dividend payment of $358 million for the first half of 2023

Adnoc L&S had announced a dividend of $130 million for the second half of 2023 at the time of its listing in June. Photo: Adnoc

The board of Adnoc Logistics and Services has approved an interim cash dividend of Dh239 million ($65 million) – 3.2 fils a share – for the second quarter of 2023, after it posted sharp rise in net profit for the three-month period.

The interim dividend will be paid to shareholders on October 19, while the dividend for the second half of the year is expected to be paid in the second quarter of 2024, Adnoc L&S said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

Adnoc L&S had announced a dividend of $130 million for the second half of 2023 at the time of its listing in June.

“The planned interim distribution of the Adnoc L&S cash dividend underscores our strong performance in the first half of the year and is testament to our unwavering commitment to providing value to our shareholders,” said Capt Abdulkareem Al Masabi, chief executive of Adnoc L&S.

“Looking ahead, we remain focused on delivering on our smart growth strategy which includes expanding our geographical reach, exploring new revenue streams, and unlocking additional value for our shareholders,” Capt Al Masabi said.

Starting from 2024, Adnoc L&S plans to raise annual dividend per share by at least 5 per cent each year, while regularly reviewing the policy “considering value accretive growth opportunities”, the company said.

Last month, Adnoc L&S reported a more than twofold jump in its second-quarter profit on the back of higher revenue.

Net profit for the three months to the end of June climbed to $162 million. Revenue during the period surged 43 per cent to $632 million.

Adnoc L&S made its debut on the Abu Dhabi bourse in June this year.

Parent company Adnoc raised about Dh2.83 billion from the sale of a 19 per cent stake in its maritime logistics unit. The initial public offering was 163 times oversubscribed and drew more than $125 billion in bids.

Meanwhile, Adnoc Drilling, the largest national drilling company in the Middle East by rig fleet size, has announced an interim dividend payment of Dh1.31 billion ($358 million), or 8.22 fils per share, for the first half of 2023.

The dividend, which is up 5 per cent from a year earlier, will be distributed to shareholders on October 27, the company said in a statement on Tuesday.

“This continued growth in dividend reflects Adnoc Drilling’s strong and visible cash flows and confidence in long term growth,” said Abdulrahman Al Seiari, chief executive of Adnoc Drilling.

“Our ability to deliver highly attractive, sustainable and growing shareholder returns is testament to our focus on profitability and cash flow,” he said.

Adnoc Drilling reported an annual 11 per cent rise in second-quarter net profit, as the addition of new land rigs to the fleet boosted revenue.

Net profit for the three months to the end of June rose to $228 million. Revenue during the reporting period rose by more than 8 per cent to $724 million.

Adnoc Drilling has provided integrated drilling services to sister companies Adnoc Onshore and Adnoc Offshore since 2019. It has been expanding operations as parent company Adnoc looks to boost its production capacity to 5 million barrels per day by 2027.

Updated: October 10, 2023, 8:50 AM