MEOG: H&P sells ADNOC Drilling shares at $97mn profit

US drilling specialist Helmerich & Payne has announced that it plans to sell its shares in ADNOC Drilling for around $197mn. This transaction involves the sale of 159.7mn shares and if successful, will represent a profit of nearly $100mn on its investment in the company. The deal is expected to close by mid-October.

H&P acquired the shares shortly before Abu Dhabi National Oil Co. (ADNOC) floated stock in its drilling subsidiary in 2021 and after it had sold eight land rigs to the Emirati firm for $86.5mn.

Fellow US services business Baker Hughes acquired a 5% stake in ADNOC Drilling around the same time, while 11% of the company’s stock was listed on the local exchange, ADX.

H&P said that the net proceeds from the planned sale will be used to reduce its commitments under its bridge loan facility, which was implemented to support the July announcement of the acquisition of UK-based KCA Deutag International for $1.97bn in cash in a strategic expansion for H&P.

At that time John Lindsay, President and CEO of H&P, described the acquisition as a historic and transformative transaction for H&P.