ADNOC Drilling shareholders will have reasons to be pleased after the 5 per cent increase in 2023 payout. And another such hike for this year. Image Credit: Supplied

Dubai: The approvals are all in place for ADNOC Drilling shareholders to receive a further $358 million on or around April 3. The record date for eligibility is set as March 21.

This will take the full-year payout by the ADNOC subsidiary to $717 million, itself a 5 per cent increase on 2022. On a per share basis, this works out to 16.45 fils.

The annual dividend is expected to grow by 'at least' 5 per cent on a per share basis over the next three years. (On ADX, the stock will start trading at Dh3.93, and its 52-week average has been Dh3.45-Dh4.33.)

As for the operations side, the company expects revenues of between $3.60 billion to $3.80 billion, which will serve up an EBITDA of $1.70 billion to $1.90 billion in a margin range of 48-50 per cent. This would then deliver a net profit of $1.05 billion to $1.25 billion, the company projects. 

On capex for 2024, the spend could be between $750 million to $950 million, while 'maintaining' a leverage ratio of net debt to EBITDA of below 2x in 2024 (excluding material M&A).

“2024 will be a landmark year for ADNOC Drilling," is how Abdulrahman Abdulla Al Seiari, the CEO sees it. "Our core integrated drilling services business is complemented by the establishment of Enersol - our strategic partnership with Alpha Dhabi that will support the adoption of AI, digitization and advanced technology solutions to drive growth, value and efficiency."

In Enersol, ADNOC Drilling holds 51 per cent and Alpha Dhabi the rest. The former will co-invest up to $1.5 billion.

We have always been ambitious at ADNOC Drilling and 2024 will be the year when we will realise those ambitions

- Abdulrahman Abdulla Al Seiari of ADNOC Drilling

Regional expansion

"The year will also see us extend our presence further into the region, building on our entry to the Jordan market last year," he added.

On the rigs, ADNOC Drilling will take its fleet size to 142. "The oilfield services segment is expected to experience continued, significant growth as the company brings operational efficiency," said the statement.

There is plenty to work on - Abu Dhabi has an estimated 22 billion barrels of recoverable unconventional oil resources, along with 160 trillion standard cubic feet of recoverable unconventional gas resources. "This opportunity presents an outstanding transformational opportunity for ADNOC Drilling and the company will be targeting this sector as a key segment for future growth," the statement added.