Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
ADNOC Drilling, the drilling arm of ADNOC, has delivered a return of 165% since its listing in October 2021.
Share price alone increased 132.2% by end of 2025 with its IPO share price of Dh2.30 jumping to Dh5.34 by end of 2025, according to its Integrated Report filed with the Abu Dhabi Securities Exchange (ADX).
The strong performance reflects sustained investor confidence supported by robust earnings visibility, long-term contracts and a resilient business model anchored within ADNOC’s upstream operations.
ADNOC’s international investment arm XRG PJSC remains the majority shareholder, holding 78.5% of the company’s capital while Baker Hughes Holdings Ltd holds a 5% stake.
No other shareholder owns more than 5% of the company’s shares.
The company has a total of 16 billion shares outstanding, with ownership largely concentrated among institutional investors and strategic shareholders.
ADNOC Drilling has also delivered strong cash returns to shareholders, with total dividend distribution of $1 billion for 2025, in line with its progressive dividend policy, which targets at least 5% annual growth through 2030.
The company said the dividend floor represents a 27% increase compared to the previous year, with the Board retaining flexibility to distribute additional dividends supported by excess free cash flow and a strong balance sheet.
Looking ahead, ADNOC Drilling expects to deliver minimum cumulative shareholder payouts of approximately $6.8 billion by 2030 under its current dividend framework.
ADNOC Drilling has strengthened its position in global equity markets, being included in key indices such as the MSCI Emerging Markets Index and MSCI UAE Index. It is also part of FTSE Russell indices including the FTSE Emerging Index, FTSE Global Large Cap Index and FTSE All-World Index.
In addition, the company is a constituent of the FADX 15 Index, which tracks the performance of the largest and most liquid companies listed on the ADX.
The company continues to expand its regional footprint and service offering.
A key development includes its joint venture with SLB covering land drilling operations in Oman and Kuwait, providing immediate access to earnings through rigs operating in both markets.
In addition, ADNOC Drilling has announced an agreement to acquire an 80% stake in MB Petroleum Services, a regional oilfield services provider with operations across Oman, Kuwait, Saudi Arabia and Bahrain.
Strategic joint ventures continue to play a central role in the company’s growth strategy. Enersol is being developed as a technology-focused investment platform to expand ADNOC Drilling’s oilfield services capabilities and support future acquisitions, while Turnwell, its joint venture with SLB and Patterson-UTI, is focused on unlocking unconventional energy resources in the UAE, contributing to both near-term growth and long-term production capacity.
ADNOC Drilling said it continues to expand its fleet and operational capabilities across its onshore, offshore and oilfield services segments.
Its onshore fleet currently comprises 92 land rigs of varying specifications, while its offshore fleet includes 36 jack-up rigs and 12 island rigs operating on Abu Dhabi’s artificial islands.
The company’s oilfield services division supports a broader drilling portfolio, with full services delivered to 60 rigs and additional services provided to 58 rigs.
ADNOC Drilling also highlighted its ongoing expansion of island drilling operations, with advanced rigs designed to enhance efficiency, reduce downtime and support increased drilling activity over the coming years.
“ADNOC Drilling shows undisputed returns leadership throughout the cycle,” the report said, highlighting strong cash conversion, capital discipline and a solid balance sheet.
The company said it remains well positioned to deliver sustained returns, supported by ADNOC’s upstream expansion plans, increasing demand for integrated drilling services, and continued investment in technology and regional growth.
“ADNOC Drilling provides a differentiated value proposition with a clear vision for the future, a long-term mandate from ADNOC, and the right combination of scale, capability and reliability to achieve our strategic ambitions,” the report said.
