ADNOC Drilling 2023 net profit exceeds $1b, hikes dividend by 5%
Recommends final dividend payment of 8.22 fils per share for 2023
Dubai: ADNOC Drilling posted a 29 per cent rise in net profit for the full year, amounting to $1.033 billion, while revenue for 2023 was up 14 per cent.
As a result of the earnings boost and revenue growth to $3.06 billion, the company recommended a final cash dividend of $358 million (8.22 fils per share), which is a 5 per cent increase from 2022.
This brings total 2023 dividend to $717 million (16.45 fils per share). The final 2023 dividend is expected to be distributed in the first half of April 2024.
“Looking ahead, ADNOC Drilling will remain dedicated to driving further efficiencies in our operational and financial performance, as we deliver enhanced value to our customers and shareholders,” said Abdulrahman Abdulla Al Seiari, Chief Executive Officer.
On the back of strong results, ADNOC Drilling also announced its full year 2024 and medium-term guidance, reaffirming growth. The company said it continues to expect its owned rig count to total 142, including the 4 new lease-to-own land rigs, by the end of 2024.
It sees total revenue in 2024 between $3.60 to $3.80 billion, core earnings (EBITDA) of $1.70 - $1.90 billion, with a margin range of 48 per cent to 50 per cent. Also, the company forcast a 2024 net profit of $1.05 - $1.25 billion, with a margin range of 30 per cent to 33 per cent.
- EBITDA Margins around 50 per cent with drilling margins exceeding 50 per cent.
- Net working capital as percentage of revenue target of around 12 per cent.
- Maintenance CapEx post-2024 of $200 - $250 million per annum