Adnoc Drilling, the largest national drilling company in the Middle East by rig fleet size, has approved a new dividend policy with an annual growth of at least 10 per cent over the next five years.
Under the new policy, no less than $4.8 billion will be distributed to shareholders between 2024 and 2028, the company said on Tuesday, adding that it may approve additional dividends on top of the progressive dividend policy after considering growth opportunities that boost free cash flow.
Shareholders can expect two dividend payments each fiscal year: The final dividend from the previous year in the first half, and the interim dividend for the current year in the second half.
“The approval of this enhanced dividend policy reflects Adnoc Drilling's commitment to delivering increasing value to shareholders, enabled by an accelerated and multi-faceted growth strategy,” said Abdulmunim Al Kindy, Adnoc upstream executive director and vice chairman of Adnoc Drilling.
The announcement comes a month after parent company Adnoc raised $935 million by selling 880 million additional shares in Adnoc Drilling to institutional investors. The sale represented 5.5 per cent of the total issued share capital.
“Adnoc’s recent placement of an additional 5.5 per cent of Adnoc Drilling’s share capital means there is now a greater number of shareholders to benefit from these enhanced returns,” Mr Al Kindy said.
The offering increased Adnoc Drilling’s free float to 16.5 per cent, with Adnoc retaining a majority stake in the company.
A higher free float is expected to help Adnoc Drilling to be included in the Morgan Stanley Capital International Emerging Market Index.
The MSCI Emerging Markets Index is a broad index that includes a large number of stocks from 24 emerging market countries, covering about 85 per cent of the total market capitalisation of these countries.
Last month, Adnoc Drilling was awarded a $1.7 billion contract by Adnoc to provide drilling services for the recovery of unconventional oil and gas resources.
Adnoc Drilling also set up a company called Turnwell Industries, which will fulfil the contract and explore potential future opportunities in unconventional resources.
In January, Adnoc Drilling and Alpha Dhabi Holding, a unit of Abu Dhabi's International Holding Company, set up a joint venture that aims to invest up to $1.5 billion to acquire technology-enabled companies in the oilfield services and energy sectors.
Adnoc Drilling owns 51 per cent of the venture with Alpha Dhabi holding the remaining stake.
Adnoc, responsible for most of the UAE's crude production, is working to develop its unconventional reserves as it looks to reach an output capacity of five million barrels per day by 2027. It can already produce up to 4.85 million bpd.
Abu Dhabi’s unconventional recoverable oil resources are estimated at 22 billion barrels of very light and sweet crude, comparable with Adnoc’s flagship lower-carbon Murban grade.
Adnoc Drilling reported a 26 per cent increase in first-quarter profit as its offshore jack-up and oilfield services businesses continued to strengthen.
Net profit for the three months ending in March rose to $275 million, up from $219 million in the same period a year earlier, while revenue surged 24 per cent annually to $886 million.
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10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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