ADNOC Drilling to Enhance Rig Count to Over 151 By 2028

ADNOC Drilling on Tuesday said that the company plans to enhance its operational capacity, projecting a rig count of over 148 by 2026 and more than 151 by 2028.

The introduction of advanced rigs with AI-enabled technologies will enhance efficiency and bolster its oilfield services (OFS) segment, delivering greater value to customers. Having extended its contract in Jordan and gained prequalification in Kuwait and Oman, ADNOC Drilling continues to pave the way for further regional expansion in 2025.

To date, Enersol, its joint venture with Alpha Dhabi, has announced acquisitions worth $800 million to acquire majority stakes in four tech-enabled oilfield service companies, and looking ahead, it aims to solidify its position as an AI-centric investment company.

Turnwell, ADNOC Drilling’s joint venture with SLB and Patterson-UTI, which has delivered an accelerated total of 30 wells to date and continues to drive efficiencies across the value chain, is also well-positioned to enable the recovery of Abu Dhabi’s unconventional resources to meet the global energy demand.

At its annual general meeting held in Abu Dhabi this morning, the company also confirmed shareholders’ approval of all agenda items including distribution of its final cash dividend payment for the year ended 31 December 2024.

ADNOC Drilling’s full-year revenue increased significantly to a record $4.034 billion, rising by 32% y-o-y and its full-year EBITDA reached a record high of $2.01 billion, up 36% y-o-y. Since its listing on Abu Dhabi Securities Exchange (ADX) in 2021, ADNOC Drilling’s net profit for the full year has more than doubled, culminating in $1.3 billion in 2024.

Fastest Growing Energy Firm

ADNOC Drilling CEO Abdulrahman Abdulla Al Seiari said that the company’s record-breaking financial performance and dividend reflect ADNOC Drilling’s strong momentum as the world’s fastest growing energy services company.

With a 10% dividend increase to $788 million in 2024 and a commitment to further increase it by at least 10% in 2025 and beyond, the company continues to deliver exceptional value to our shareholders while investing in the future, he said.

“Our targeted expansion across the region, AI-powered rigs and cutting-edge oilfield services position us for even greater success. As we accelerate innovation through Enersol and unlock Abu Dhabi’s unconventional energy potential through Turnwell, ADNOC Drilling remains at the forefront of the industry,” he added.

The final shareholder-approved cash dividend payment for 2024 amounts to $394 million bringing the total 2024 dividend to $788 million. This represents a 10% y-o-y increase versus 2023. The dividend will be paid on or around 11 April 2025, to all shareholders of record as of 27 March 2025.

The dividend is expected to increase to at least $867 million for 2025, reaching at least $1.15 billion by 2028, based on the minimum 10% year-on-year increase, in line with the Company’s progressive dividend policy.

The policy grants the Board of Directors discretion to distribute additional dividends above this floor, reaffirming ADNOC Drilling’s commitment to maximising growth and returns for its shareholders.

Additionally, ADNOC Drilling expects substantial free cash flow of up to $1.6 billion in 2025, and net income growth with an implied pay-out ratio of less than 65% at the dividend floor in 2025. This strategic approach positions ADNOC Drilling for significant financial and operational success in the coming years.

On the back of record 2024 financial results, ADNOC Drilling announced its full year 2025 guidance, reaffirming continued growth. Among the key guidance metrics, in 2025 the Company expects total revenue between $4.6 to $4.8 billion, and EBITDA of $2.15 to $2.3 billion with a margin range of 46%-48%. Net Profit is expected to be between $1.35 to $1.45 billion, with a margin range of 28%-30%.

Moreover, ADNOC Drilling expects CAPEX of between $350 million and $550 million, free cash flow (excluding M&A) between $1.3 billion and $1.6 billion, and a dividend floor of $0.87 billion, while maintaining a conservative leverage target of up to 2.0x Net Debt / EBITDA.