At its general shareholder meeting, Adnoc Drilling Company announced that the shareholders had approved its new progressive dividend policy. Over the next five years (2024–2028), the policy will see dividends grow by at least 10% annually on a dividend-per-share basis. Over 27% is the anticipated cumulative minimum yield under the new policy for the years 2024–2028.
Additionally, after considering free cash flow accretive growth opportunities, the Board of Directors may, at its discretion, approve additional dividends above and beyond the progressive dividend policy. Semi-annual dividend payments are anticipated, with the interim dividend being paid in the second half of each fiscal year and the final dividend going to shareholders in the first 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 that embraces artificial intelligence, digitization, and advanced technologies both in the UAE and internationally,” said Abdulmunim Saif Al Kindy, Adnoc Upstream Executive Director and Vice Chairman of Adnoc Drilling, in response to the new dividend policy.
Adnoc completed the $935 million institutional placement of Adnoc Drilling shares on May 23, 2024. With this placement, Adnoc Drilling’s free float increased to 16.5%, accounting for 5.5% of its total issued and outstanding share capital. This deal, which reflects the high market demand, is the largest ABB (Accelerated Book Building) transaction ever completed in the Mena region.
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