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Abu Dhabi, August 4 / Today, ADNOC Drilling announced its financial results for the first half and second quarter of 2023.
During the first half of this year, it recorded an increase in its revenues amounting to 5.29 billion dirhams (1.4 billion US dollars), an increase of 13% on an annual basis, and it also recorded an increase in net profits that amounted to 1.64 billion dirhams (446 million US dollars), a strong increase. It is 18% on an annual basis.
The company’s revenue growth was driven by the Oilfield Services and Self-Elevating Offshore Rigs segments, which increased by 45% and 31% respectively.
Abdulrahman Abdullah Al Sayari, CEO of ADNOC Drilling, said: “ADNOC Drilling’s strong financial performance during the first half of 2023 reflects our commitment to the strategy of expanding the company’s fleet of rigs and expanding the scope of our services while improving profit margins through strong cost performance.” Oilfield services revenue in the same period increased by 45% year-on-year with strong margins The company was also able to make significant progress on the targets of its fleet expansion program by signing agreements to build 16 onshore drilling rigs powered by hybrid power, which is a component An additional pivotal part of the company’s strategy to reduce emissions. He added: “The company’s strong and ever-evolving financial performance supports our progressive dividend policy, and we expect this year’s interim dividend to come in line with this policy, which reflects our continued commitment to providing sustainable value to our shareholders.”
In a related context, EBITDA during the first half of this year rose strongly to reach 2.49 billion dirhams (677 million US dollars), an increase of 17% on an annual basis, due to the increase in revenues along with the realization of significant savings in cost, resulting in an exceptional EBITDA margin of 47%.
The company’s strategy as part of its program to expand its fleet of rigs and expand the range of services it provides also pushed the net profit to rise to 1.64 billion dirhams (446 million US dollars), a strong increase of 18% year-on-year.
In turn, revenues for the second quarter grew by 8% year-on-year to reach AED 2.66 billion (US$ 724 million), an increase of 1% compared to the first quarter.
EBITDA in the second quarter also increased by 15% year-on-year and by 3% compared to the previous quarter to reach AED 1.26 billion (US$ 344 million), resulting in an EBITDA margin of 48%. percent, or 3 percentage points higher year-on-year.
Net profit for the second quarter increased by 12% year-on-year and an increase of 4% compared to the first quarter, reaching AED 836 million (US$ 228 million). Revenues from the onshore drilling services segment remained broadly flat during the first half of 2023 at AED 2.57 billion (US$ 701 million) compared to last year.
The increase in the revenues of this sector, driven by the entry of new excavators into the company’s operating fleet during the second half of 2022, is due to the decrease in the annual payment of cost increase claims, especially the decrease in diesel prices.
Revenue for the second quarter witnessed a decline of 10% year-on-year, as the same period last year was positively impacted by the recovery of higher fuel costs in line with contractual terms.
The decline in diesel prices and related payments resulted in a 3% decrease in revenue compared to the first quarter.
Revenues from the offshore drilling services segment also increased during the first half of the year to reach AED 1.38 billion (US$ 376 million), an increase of 31% due to the introduction of five new self-elevating drilling rigs into the company’s operational fleet during the second half of 2022.
The entry of these new rigs had a positive impact on revenues for the second quarter of this year, which increased by 33% year-on-year and an increase of 4% compared to the first quarter. Revenues of the artificial island services sector during the first half of this year amounted to 378 million dirhams (103 million US dollars), an increase of 2% year-on-year. Revenues for the second quarter increased by 2% year-on-year, an increase of 2% compared to the first quarter.
Oilfield services sector revenues increased to AED 955 million (US$ 260 million) during the first half of 2023, an increase of 45% year-on-year, driven by the expansion of this sector’s activity across its entire business portfolio, while the second quarter revenues for this sector increased by 47% year-on-year, an increase of 6% compared to the previous quarter.
On the other hand, ADNOC Drilling announced during the first half of 2023 the signing of contracts worth more than 8.81 billion dirhams (2.4 billion US dollars), including obtaining a contract for self-elevating offshore drilling rigs worth 7.35 billion dirhams (2 billion US dollars), and a contract Integrated Drilling Services worth AED 1.51 billion (US$ 412 million).
The company also signed purchase and sale agreements for the acquisition of two high-quality self-elevating offshore drilling rigs and 16 new onshore hybrid powered drilling rigs.
It is worth noting that adopting the operation of rigs powered by hybrid energy within the company’s fleet is a qualitative addition that falls within the framework of ADNOC Drilling’s efforts to reduce emissions in its operations.
In line with the company’s progressive dividend policy, it is expected that interim dividends for the current year will increase by no less than 5% compared to last year, which confirms the company’s commitment to creating value
