ADNOC Drilling Underlines Commitment to Sustained Growth and Receives Shareholder Approval for $341 Million Final 2022 Dividend at Annual General Assembly Meeting

Final dividend amounts to a robust $341 million or 7.83 fils per share and brings total dividend to $682.5 million or 15.67 fils per share for full-year 2022

Company reaffirms its commitment to deliver highly attractive shareholder returns and progressive dividend policy

Shareholder approval emphasizes strong confidence in Company’s key role in enabling ADNOC’s significant production capacity growth plans

Abu Dhabi, UAE – April 4, 2023: ADNOC Drilling Company PJSC (“ADNOC Drilling” or the “Company”) (ADX symbol: ADNOCDRILL / ISIN: AEA007301012) confirms shareholder approval of all agenda items at the Annual General Assembly Meeting, including distribution of its highly attractive cash dividend for the full year ending December 31, 2022.

The final shareholder-approved dividend for 2022 amounts to a robust $341 million or 7.83 fils per share in accordance with Securities and Commodities Authority regulations. The dividend is payable on April 25, 2023 to all shareholders of record as at April 13, 2023.
 
Today’s vote brings the total full-year 2022 dividend to $682.5 million or 15.67 fils per share, a 5% year-on-year increase from 2021 levels. The dividend is backed by exceptional full year 2022 results which saw revenue increase by 18%, EBITDA of $1.23 billion with an impressive margin of 46% and net profit of $802 million, up 33% year-on-year.

ADNOC Drilling reiterates its commitment to a dividend policy that is progressive, reflecting robust underlying cash flow, with an annual distribution that is expected to grow by at least 5% per annum on a dividend per share basis over the next four years (2023-2026). 

Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, said: “Since our public listing in October 2021, we have relentlessly focused on value accretive investments and strategic growth. In 2022, we delivered a 33% year-on-year increase in net profit to reach $802 million for the year while driving EBITDA to $1.23 billion through powerful revenue momentum coupled with excellent progress on cost efficiency.

“In 2023, we will continue to accelerate our growth trajectory, driven by our new market-leading rigs coming online, ongoing investments in integrated drilling services and our expansion into unconventional oil and gas development. Coupled with a laser focus on enhanced cost efficiencies we will ensure we continue to deliver long-term shareholder value.”


Positive 2023 Guidance

The successes of 2022 and the exceptional growth pipeline, resulting in part from ADNOC’s accelerated production capacity targets, saw ADNOC Drilling initiate 2023 year-ahead guidance ahead of market expectations.

Central to the Company’s updated guidance is a plan to further accelerate its fleet expansion program to 142 rigs by 2024, compared to the IPO guidance of 127 rigs by 2030. 

ADNOC Drilling expects 2023 revenue between $3.0 to $3.2 billion, which represents year-on-year growth of up to 20%. EBITDA is expected to be in a range between $1.35 to $1.5 billion, with a healthy margin of between 45% to 47%. The Company also anticipates new record net profit between $850 million to $1 billion, again continuing the growth from $604 million in 2021 to $802 million in 2022 and to new highs in 2023.