By: AGBI

The board of Adnoc Drilling, the listed subsidiary of state-backed Abu Dhabi National Oil Company (Adnoc), has recommended a dividend payment of more than a quarter billion dollars for the first quarter of 2026 amid higher revenues.

The top line rose 5 percent year on year to $1.2 billion in the quarter ended March 31, driven by long-term contracts, high fleet utilisation and disciplined cost management, the company said in a statement to the Abu Dhabi Securities Exchange (ADX).

Net profit rose 2 percent annually to $350 million.

The company said it “experienced no material operational or financial impact in the first quarter of 2026, and continuity planning remains robust”, despite the Iran conflict which began on February 28.

The board recommended a dividend of $263 million for the first quarter, payable in early June. The $1.05 billion annual dividend floor for 2026 remains well supported by strong free cash-flow generation, long-term contract coverage and balance-sheet strength, the statement said.

Adnoc Drilling is targeting the deployment of 70 rigs by the end of 2026 and expects capex of $250 million per annum.

Shares in Adnoc Drilling, listed on the Abu Dhabi exchange since October 2021, opened at AED6.3 on Monday. The stock is up 18 percent so far this year.

XRG, the international investment arm of Adnoc, owns 78.50 percent of Adnoc Drilling.