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ADNOC Drilling is forecasting 18% annual growth in the medium term as it continues to expand internationally with a budget of $1.5 billion for acquisitions through its joint venture Enersol.
Youssef Salem, Chief Financial Officer at ADNOC Drilling said the Abu Dhabi-listed entity, a subsidiary of state oil giant ADNOC, said Enersol had carried out four transactions in 2024, accounting for half of the $1.5 billion budget, with transactions of equal size planned for 2025.
ADNOC Drilling is currently the most covered stock in Abu Dhabi Securities Exchange (ADX) and its annual net income grew from $600 million to $1.3 billion in 2024.
The entity plans to distribute dividends of $5 billion over the next five years, 20% of its market cap, Salem said.
The 18% growth figure is on contracted growth, Salem added, but does not include growth from Enersol under which ADNOC Drilling acquires tech-enabled solutions.
Turnwell Industries, its JV with US-based Patterson UTI, is also looking to unlock the Middle East region’s opportunities in unconventional resources, as most of the region’s growth has been based on conventional resources, he added.
ADNOC Drilling is already live drilling in Jordan and has pre-qualified in Kuwait and Oman, where there is a market of 100 land rigs, three times the size of the Abu Dhabi market, which Salem described as a “massive growth opportunity”.
Looking ahead, the company has $2 billion of term debt, which it will refinance in the fourth quarter of 2025 from European, American, Japanese, Middle Eastern and Chinese lenders, which Salem said is a global syndicate that is “keen to continue”.
(Reporting by Imogen Lillywhite; editing by Bindu Rai)
