• Business

Adnoc Drilling is set to distribute a dividend of Dh341 million

by Swati Gupta

April 4, 2023 19

Abu Dhabi National Oil Company’s (ADNOC) drilling subsidiary, Adnoc Drilling, is set to distribute a dividend of Dh341 million. The dividend payout comes after Adnoc Drilling’s successful initial public offering (IPO) last year, which was the largest in the Middle East since 2014.

The dividend payment is a reflection of Drillings’ strong performance over the past year, as it continues to play a critical role in it’s efforts to increase oil production and meet global demand. Adnoc Drilling is one of the largest drilling companies in the Middle East, with a fleet of more than 90 rigs and a workforce of more than 6,000 employees.

The dividend payout is also expected to be a boon for investors, many of whom have been eagerly anticipating a return on their investment. Adnoc Drilling’s IPO last year was highly oversubscribed, with demand outstripping supply by more than six times. The successful IPO was seen as a vote of confidence in the company’s growth prospects and in ADNOC’s broader plans to modernize its operations and increase efficiency.

The distribution of dividends is also in line with ADNOC’s commitment to maximizing value for its shareholders. In recent years, it has embarked on a comprehensive transformation program aimed at modernizing its operations and increasing efficiency, while also focusing on sustainability and environmental responsibility.

One of the key pillars of this transformation program has been the increased use of technology and innovation to enhance efficiency and reduce costs. ADNOC has also been exploring new partnerships and collaborations with leading companies in the energy sector, in order to leverage their expertise and knowledge.

Adnoc Drilling’s dividend payment is expected to be followed by similar announcements from other subsidiaries, as the company continues to reap the benefits of its transformation program. The company is also expected to play a critical role in ADNOC’s ambitious plans to increase oil production and expand its downstream capabilities.

In recent years, ADNOC has been working to diversify its operations and expand into new areas, including petrochemicals, refining, and gas. The company has also been exploring new markets and partnerships, as it seeks to position itself as a leading player in the global energy industry.

Despite the challenges posed by the COVID-19 pandemic, it has continued to make progress on its transformation program, with a focus on sustainability, innovation, and efficiency. The company has also been taking steps to enhance its environmental performance, including by investing in renewable energy and carbon capture technologies. As part of this effort, ADNOC is also engaging with its stakeholders to ensure that its operations are conducted in a safe and responsible manner. In the coming months, we look forward to seeing further progress from ADNOC on these fronts.

The company has further demonstrated its commitment to sustainability by signing up for the United Nations Global Compact to support the achievement of the UN Sustainable Development Goals. This commitment shows that ADNOC is determined to play its part in helping to create a more sustainable future for all.

The distribution of dividends by Drilling is expected to be welcomed by investors and analysts, who view the move as a reflection of the company’s strong financial position and growth prospects. It is also likely to fuel further interest in ADNOC’s operations and in the wider energy sector in the Middle East.

Looking ahead, it is expected to continue to play a leading role in the global energy industry, as it seeks to capitalize on the growing demand for energy and position itself as a major player in the shift towards a more sustainable and efficient energy future. The company’s focus on innovation, technology, and partnerships is likely to be a key driver of its success in the years to come, as it works to create value for its shareholders and for society as a whole.