by Staff Reporter
Dubai: ADNOC Drilling returned some power packed growth numbers for the first six months, enough to deliver revenues of $1.8 billion plus, higher by 26 per cent from a year ago. The growth came in from ‘all business segments’, and which was capped by the Board of Directors approving an interim dividend of $394 million, higher by 10 per cent from a year ago.
This works out to 9.05 fils a share. In June, its shareholders had approved a ‘progressive’ dividend policy that will see payout grow by ‘at least 10 per cent per annum’ on a dividend per share basis over the next five years. (The Board may approve additional dividends over and above the policy after ‘considering free cash flow and accretive growth opportunities’.)
“ADNOC Drilling has continued to deliver on its strategic initiatives and has successfully closed the first half of the year on a strong note, achieving multiple milestones,” said Abdulrahman Abdulla Al Seiari, CEO.
Net profit for the period was $570 million, up 28 per cent, while the EBITDA margin was at a stellar 48-50 per cent.
Major win
In July, ADNOC Drilling was awarded a $733 million contract for three newbuild island rigs. The contract’s ‘accretive day-rates’ will help long-term contracted cash flow and earnings visibility’, the company said.
As for the medium term, the ADNOC Drilling fleet is expected to total ‘at least’ 148 by 2026, including the three new rigs in the July contract as well as an earlier announced three land rigs for the ‘initial phase of the unconventionals development’. (At the end of June, the fleet consisted of 140 rigs (136 owned plus four lease-to-own land rigs.)
The capital expenditure will be maintained at $750 million to $950 million.
Higher free float
ADNOC recently offered additional ADNOC Drilling shares through a bookbuild offer to professional investors in the UAE and institutional investors elsewhere. The $935 million placement constituted 880 million shares priced at Dh3.90, representing 5.5 per cent of ADNOC Drilling’s total share capital, with ADNOC retaining a majority 78.5 per cent stake.
The was the ‘largest-ever accelerated bookbuild of a publicly listed company in the UAE’. It raised ADNOC Drilling’s free float by 50 per cent, ‘enhancing liquidity and providing a pathway for broader indexation’.
Source: Gulf News
