ADNOC Drilling Reports Revenue Growth and Dividend Plan
ADNOC Drilling has announced impressive financial results for the first nine months of 2025, showcasing a robust increase in revenue and profits. The company also introduced a comprehensive dividend plan aimed at rewarding shareholders through 2030.
Financial Performance Overview
In the first three quarters of 2025, ADNOC Drilling achieved a 27% increase in revenue, reaching $3.63 billion. This growth was complemented by a 17% rise in net profit, which totaled $1.06 billion. Additionally, the company reported a remarkable 174% surge in free cash flow, amounting to $1.2 billion.
The board of directors has approved a dividend of $250 million for the third quarter, translating to 5.7 fils per share, which is set to be distributed in November 2025. Furthermore, ADNOC Drilling has established a new dividend framework that aims for a minimum of $6.8 billion in shareholder distributions from 2025 to 2030. This plan includes a 27% increase in dividends for the upcoming year, followed by annual increments of at least 5%.
Strategic Growth Initiatives
Abdulla Ateya Al Messabi, CEO of ADNOC Drilling, emphasized the company’s strong performance and future growth potential. He highlighted the ambitious plans to scale unconventional drilling operations to over 300 wells annually and expand the Integrated Drilling Services (IDS) fleet to 70 rigs by 2026. Additionally, ADNOC Drilling is preparing for new offshore island operations, which are expected to contribute significantly to revenue growth.
The company reported revenue increases across all business segments. The onshore division generated $1.52 billion, a 13% rise, driven by new rig deployments and increased unconventional drilling activities. Offshore operations contributed $1.04 billion, reflecting a 3% increase, while Oilfield Services saw a remarkable 114% growth, reaching $1.07 billion, fueled by rising demand for integrated drilling and discrete services.
Future Outlook and Expansion Plans
In 2025, ADNOC Drilling secured over $5 billion in new contracts, enhancing its revenue visibility through 2040. The company is also pursuing regional expansion through a joint venture with SLB in Kuwait and Oman, pending necessary regulatory approvals.
To enhance operational efficiency and safety, ADNOC Drilling is accelerating the integration of artificial intelligence and automation. Initiatives such as predictive maintenance, autonomous rig movements, and intelligent workflows are already yielding significant cost and time savings.
The company aims to grow its IDS fleet to 151+ rigs by 2028, with an annual maintenance capital expenditure projected at around $250 million. ADNOC Drilling maintains a conservative leverage strategy, targeting a net debt to EBITDA ratio of up to 2.0x.
Looking ahead, ADNOC Drilling anticipates that its revenue for the fiscal year 2026 will approach $5 billion, with profit margins expected to remain consistent with 2025 levels. Conventional drilling margins are projected to exceed 50%, while Oilfield Services margins are expected to range between 23% and 26%.
FAQs
What is ADNOC Drilling’s revenue growth for 2025?
ADNOC Drilling reported a 27% increase in revenue, totaling $3.63 billion for the first nine months of 2025.
How much is the approved dividend for the third quarter?
The board approved a dividend of $250 million for the third quarter, which equates to 5.7 fils per share.
What are ADNOC Drilling’s future expansion plans?
The company plans to expand its Integrated Drilling Services fleet to 70 rigs by 2026 and aims to grow to over 151 rigs by 2028, alongside pursuing regional expansion opportunities.
Conclusion
ADNOC Drilling’s strong financial performance and strategic growth initiatives position the company for continued success in the coming years. With a clear dividend roadmap and ambitious expansion plans, ADNOC Drilling is set to enhance shareholder value while navigating the evolving energy landscape.
ADNOC Drilling operates in a competitive landscape characterized by fluctuating oil prices and evolving technological advancements. The company’s focus on integrating innovative solutions such as artificial intelligence is indicative of a broader industry trend towards digital transformation, which aims to improve operational efficiency and reduce costs. This strategic direction aligns with global efforts to enhance sustainability and reduce the environmental impact of drilling operations.
Moreover, ADNOC Drilling’s commitment to expanding its fleet and capabilities reflects a proactive approach to meet increasing demand in both domestic and international markets. By securing significant contracts and pursuing joint ventures, the company is positioning itself to capitalize on growth opportunities in the Middle East and beyond, ensuring its relevance in a rapidly changing energy sector.
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