ABU DHABI, (Pakistan Point News - 17th Oct, 2021) ADNOC Drilling Company today announced continued confidence in the key business growth and budget resolutions at the inaugural meeting of the newly formed ADNOC Drilling Board, and welcomed the inclusion of the Company in three globally-recognised Indices: FTSE Emerging Index, FTSE Global Large Cap Index and FTSE All-World Index.
The inaugural ADNOC Drilling Board meeting was chaired by Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, as well as ADNOC Drilling Chairman. The Company’s Board approved ADNOC Drilling’s ambitious five-year business growth plan for 2022 to 2026, as well as the 2022 budget.
These key approvals reinforce ADNOC Drilling’s integral position as the sole provider of drilling rig hire and rig-related services to ADNOC Group (ADNOC), as the Company maintains and further grows its critical role in enabling ADNOC to deliver on its 2030 crude oil production capacity target of 5 million barrels per day and achieving gas self-sufficiency for the UAE.
Further underpinning the Company’s growth momentum and strong market position, ADNOC Drilling has been included in three major global FTSE Russell Indices (FTSE Indices), which are used by investors around the world to benchmark investment performance and portfolio compositions. ADNOC Drilling was included in these key global indices by FTSE after meeting all necessary requirements, less than two weeks after its record ADX listing.
Following the inaugural board meeting, Dr. Al Jaber commented, "The inclusion of ADNOC Drilling into three world-renowned FTSE Indices marks another strong endorsement from the global financial markets in both the Company and Abu Dhabi’s thriving equity capital market. It also further increases the attractiveness of ADNOC Drilling’s shares to the international investor community, with the potential to add to the diversification of its overall investor base.
"ADNOC Drilling will continue to play a pivotal and leading role in enabling ADNOC’s ambitious production capacity growth plans, underpinned by the core resolutions adopted at the inaugural board meeting post-listing, including the Company’s robust business plan, focused on sustained and enhanced growth. The resolutions will ensure that ADNOC Drilling effectively responds to and delivers against the trust investors are placing in the Company, as well as create additional value for ADNOC Drilling’s shareholders and the UAE."
ADNOC Drilling continues to drive its growth plans and remains active in a number of mega-tenders in Abu Dhabi, while also actively pursuing the further expansion of its discrete services portfolio and market share in the Oil Field Services (OFS) segment. If awarded, these tenders will expand the Company’s portfolio outside of the Integrated Drilling Services (IDS) segment with awards expected during 2022.
Building on the Company’s increased drilling requirements, with thousands more wells to be drilled by 2030, and as part of the IPO cornerstone investment and strategic drilling alliance announced with Helmerich & Payne (H&P) on 8th September, 2021, two of the eight world-class land rigs are in the UAE and are currently being prepared to start operations in early 2022.
ADNOC successfully completed the IPO of 11% of total issued share capital in ADNOC Drilling on the ADX on 3rd October, 2021. The $1.1 billion offering to qualified international institutional and UAE retail investors, was oversubscribed in excess of 31 times on aggregate. ADNOC Drilling shares rallied 30% on listing day and have traded consistently at that level since, closing at AED2.97 on Thursday, 14th October, 2021 up 29.1% from the IPO offer price, reinforcing continuously strong investor demand.
Following the listing, ADNOC retains an 84% majority-ownership in ADNOC Drilling, with global energy services company Baker Hughes, which entered into a strategic partnership with ADNOC Drilling in October 2018, retaining a 5% share. International contract oil and gas driller Helmerich & Payne (H&P) holds a 1% stake following its IPO cornerstone investment.