ADNOC Drilling net profit grows 24% to $568 million for first nine months of 2022

ADNOC Drilling Company PJSC on Monday announced its financial results for the nine months and third quarter ended 30 September 2022.

ADNOC Drilling’s net profit for the nine-month period grew significantly, by 24% to $568 million, while revenue increased 15% to $1.94 billion compared to the same period last year. Nine-month EBITDA was $879 million for 2022, up 12% year-on-year, at an industry-leading EBITDA margin of 45.3%, the company said in a statement.

Year-on-year revenue growth was led by the onshore segment, with ADNOC Drilling positioned as a key enabler of ADNOC’s ambitious programme to significantly boost production capacity. The company’s oilfield services (OFS) segment equally achieved very strong year-on-year gains.

Third quarter revenue grew 17% year-on-year to $671 million, driven primarily by the onshore and OFS segments. Third quarter EBITDA increased by 5% year-on-year to $299 million for the period. Net profit for the third quarter grew by 6% year-on-year to $189 million.

“Our strong nine-month results were underpinned by the consistent execution of our strategic priorities as we continue to prove our value as a reliable and efficient operator and fast-growing drilling leader,” Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, said in a statement.

“Our accelerating rig fleet expansion programme is a prime example. Supporting the UAE’s long-term production capacity targets, the programme is already paying off as new rigs commence operations. A significant number of additional rigs are scheduled to come onstream in the fourth quarter, further boosting our financial and operating performance as we head towards 2023 and continued shareholder value creation,” he said.

On 3 October 2022, ADNOC Drilling celebrated one year since listing on the Abu Dhabi Securities Exchange (ADX). At the time, the initial public offering was the largest listing in the history of the exchange and was 31 times oversubscribed. Since listing, the Company has delivered a total shareholder return of 53.7% as at 30 September 2022.

“Sustainability continues to be a major focus as we deliver on our commitment to reduce and, where possible, eliminate emissions from our operations. We are also partnering with our customers to support their sustainability goals,” Al Seiari said.

“An example is the recently delivered 50,000ft extended reach well for ADNOC Offshore in the giant Zakum field, tapping into an undeveloped part of the reservoir. This well helps unlock an additional production capacity of 15,000 barrels per day and achieves this without the need for further costly infrastructure and with minimal environmental footprint, and is the world’s longest extended reach well. Such pioneering drilling engineering achievements, reinforce ADNOC Drilling's prime position in the drilling and completion services industry,” he added.