ADNOC Drilling implements new dividend policy aimed at enhancing shareholder value
Date
6/25/2024 8:45:42 AM
(MENAFN) ADNOC drilling Company, listed on the Abu Dhabi Securities Market, announced on Tuesday its shareholders' approval of a new progressive dividend policy. The policy entails an annual increase of no less than 10 percent in the dividend distribution rate per share for the next five years, spanning from 2024 to 2028. The company's statement highlights that this new policy is anticipated to deliver a cumulative return of more than 27 percent as a minimum over the specified five-year period.
Additionally, the Board of Directors retains the authority to approve supplementary dividends beyond those stipulated by the new policy. Such decisions will be made following an evaluation of opportunities to enhance free cash flow. The distribution of profits is expected to occur semi-annually, with final dividends disbursed to shareholders in the first half of each fiscal year and interim dividends paid in the latter half.
Abdul Moneim Saif Al Kindi, CEO of the Exploration, Development, and Production Department and Vice Chairman of the Board of Directors of ADNOC Drilling, expressed confidence in the company's new progressive dividend policy. He emphasized that this strategic move underscores ADNOC Drilling's unwavering commitment to enhancing shareholder value. Al Kindi highlighted the company's dedication to accelerating growth and advancing development initiatives. These efforts are underpinned by meticulous planning and a multidisciplinary approach, leveraging cutting-edge technologies, artificial intelligence, and digital solutions.
The implementation of this new dividend policy aligns with ADNOC Drilling's broader strategy aimed at optimizing shareholder returns while pursuing sustainable growth. By prioritizing value creation and leveraging innovative approaches, the company aims to solidify its position as a leading player in the energy sector while delivering sustainable returns to its shareholders.
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