UAE's ADNOC Drilling's Q1 2024 profit jumped 25.5% to $274.6 million, from $218.6 million in the same quarter last year.
The company recorded pre-tax profits of $302.1 million, compared to $218.6 million in the first quarter of last year.
The company's revenues increased by 24% in the first quarter of 2024 to about $886 million, compared to $716 million in the corresponding quarter last year.
The increase in profits was driven by the company’s revenue growth of nearly 24% year-on-year, recording around AED 3.25 billion, while the revenue growth was driven by an increase in revenues from the offshore drilling and oilfield services sectors by 51% and 16% respectively. On the other hand, general and administrative expenses and financing costs increased.
The company's board of directors also recommended a new progressive dividend distribution policy that recommends increasing the dividend distribution ratio to no less than 10% annually over the next five years 2024-2028.
The new policy is scheduled to be presented for approval by the General Assembly at a meeting to be announced soon.
In accordance with this policy, it is expected that profits will be distributed semi-annually, with final dividends distributed to shareholders in the first half and interim dividends paid in the second half of each fiscal year.