External broker reports(aggregated public sources), International Securities

International Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

<ul><li>We revise our FV on ADNOC Drilling to AED4.67/sh., offering 18.3% price upside from last close.</li><li>We maintain our Buy recommendation. We expect FY23-FY27 EBITDA and core net profit CAGR of 10% and 12%, respectively, taking EBITDA and net profit to USD2.2bn and 1.5bn in FY27e, respectively.</li><li>Stock is a mix of value and growth with 14% FY24 expected core net profit growth to USD 1.1bn and dividend of AED0.17/sh., translating into dividend yield of 4.4%.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We revise our FV on ADNOC Drilling to AED4.67/sh., offering 18.3% price upside from last close.We maintain our Buy recommendation. We expect FY23-FY27 EBITDA and core net profit CAGR of 10% and 12%, respectively, taking EBITDA and net profit to USD2.2bn and 1.5bn in FY27e, respectively.Stock is a mix of value and growth with 14% FY24 expected core net profit growth to USD 1.1bn and dividend of AED0.17/sh., translating into dividend yield of 4.4%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ADNOC Drilling: Sustained Earnings Growth and Rising Dividends

Thematic (Sector/Industry)

<ul>
<li>We expect ADNOC Drilling to post 4Q23e profits of USD263mn, up 2% QoQ and 13% YoY.</li>
<li>Our 4Q23e result would take FY23e profit to USD967mn, up 21% YoY and towards the high end of the management’s guided range of USD850mnUSD1bn.</li>
<li>We expect total rig count to reach 129 rigs, compared to 124 rigs and 115 rigs in 3Q23 and 4Q22, respectively.</li>
</ul>
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


We expect ADNOC Drilling to post 4Q23e profits of USD263mn, up 2% QoQ and 13% YoY.
Our 4Q23e result would take FY23e profit to USD967mn, up 21% YoY and towards the high end of the management’s guided range of USD850mnUSD1bn.
We expect total rig count to reach 129 rigs, compared to 124 rigs and 115 rigs in 3Q23 and 4Q22, respectively.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/covestro-ag" target="_blank" data-smartkarma-citation="entities:21574:1" rel="noopener">Covestro AG (1COV GR)</a> has been the subject of a potential takeover from ADNOC since Bloomberg reported on 20 June. The last reported potential offer is €60/share (c.€11.3 billion).</li>
<li>ADNOC could be willing to offer €64.5 (7.1x EV/EBITDA on mid-cycle €2,110 million EBITDA), but Covestro is rumoured to seek €70/share (typical chemicals 6x on €2,675 million EBITDA, likely demanding).</li>
<li>Considering a takeout price of €60, gross spread is 11.7% and the shares are pricing a 64% probability of deal completion. I'd be long at €53/share, as downside seems limited.</li>
</ul>



Covestro AG (1COV GR) has been the subject of a potential takeover from ADNOC since Bloomberg reported on 20 June. The last reported potential offer is €60/share (c.€11.3 billion).
ADNOC could be willing to offer €64.5 (7.1x EV/EBITDA on mid-cycle €2,110 million EBITDA), but Covestro is rumoured to seek €70/share (typical chemicals 6x on €2,675 million EBITDA, likely demanding).
Considering a takeout price of €60, gross spread is 11.7% and the shares are pricing a 64% probability of deal completion. I'd be long at €53/share, as downside seems limited.


United Arab Emirates

ADNOC Drilling Company P.J.S.C. operates as a drilling company. The Company provides drilling and well construction services for conventional and unconventional reservoirs on land, sea, and artificial islands. ADNOC Drilling serves clients worldwide.

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ADNOC Drilling PJSC (ADNOCDRI UH)

ADNOC Drilling: Sustained Earnings Growth and Rising Dividends

We revise our FV on ADNOC Drilling to AED4.67/sh., offering 18.3% price upside from last close. We maintain our Buy recommendation.

International Securities

4Q23 Quarterly Result Previews

Our 4Q23e result would take FY23e profit to USD967mn, up 21% YoY and towards the high end of the management’s guided range of USD850mnUSD1bn.

International Securities

ADNOC/Covestro: Bargaining On

Covestro AG is potentially being taken over by ADNOC, with a potential offer of €60/share. Covestro is rumored to be seeking €70/share. The shares...

Jesus Rodriguez Aguilar

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52-week Range

Market Cap (USDm)

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ADNOC Drilling: Sustained Earnings Growth and Rising Dividends

We revise our FV on ADNOC Drilling to AED4.67/sh., offering 18.3% price upside from last close. We maintain our Buy recommendation.

International Securities

4Q23 Quarterly Result Previews

Our 4Q23e result would take FY23e profit to USD967mn, up 21% YoY and towards the high end of the management’s guided range of USD850mnUSD1bn.

International Securities

ADNOC/Covestro: Bargaining On

​Covestro AG is potentially being taken over by ADNOC, with a potential offer of €60/share. Covestro is rumored to be seeking €70/share. The shares...

Jesus Rodriguez Aguilar

Covestro AG is potentially being taken over by ADNOC, with a potential offer of €60/share. Covestro is rumored to be seeking €70/share. The shares...