Abu Dhabi-listed ADNOC Drilling has confirmed an enhanced dividend policy with minimum 10% annual growth for five years.

The new policy will see at least $4.8 billion distributed to shareholders between 2024 to 2028. The expected cumulative minimum yield from the new policy in the period 2024-2028 is more than 27%.

ADNOC Drilling is the largest drilling and well completions company in the Middle East by fleet size.

The policy gives Board of Directors the ability to approve additional discretionary dividends and dividend growth.

On May 23, 2024, ADNOC completed a $935 million institutional placement of ADNOC Drilling shares. This placement represented 5.5% of ADNOC Drilling’s total issued and outstanding share capital and increased its free float to 16.5%.

The higher free float is expected to provide a pathway towards inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index.

ADNOC Drilling is pursuing regional growth through the expansion of its operations and potential acquisitions. It's JV with Alpha Dhabi, Enersol, enables the drilling giant to acquire and invest in global energy technologies.

(Writing by Seban Scaria; editing by Daniel Luiz)