Adnoc Drilling reports 18% increase in profits

Adnoc Drilling has announced an 18 percent increase in net profit for the first half of the year, buoyed by an increased fleet and service expansion.

The company, a subsidiary of Abu Dhabi National Oil Company (Adnoc), saw revenues grow by 13 percent to $1.4 million year on year, with profits for the six-month period hitting $446 million.

Abdulrahman Abdulla Al Seiari, chief executive officer, Adnoc Drilling, described it as a “strong and growing financial performance”.

• Adnoc shaves five years off net zero deadline
• Adnoc raises bid for Covestro to $12.4bn

First half EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 17 percent to $677 million, due to the uptick in revenue coupled with the delivery of cost savings, leading to an EBITDA margin of 47 percent.

Half-year onshore revenues reached $701 million, while offshore jack-up operations recorded a 31 percent increase to $376 million.

During the first half of 2023, Adnoc Drilling signed contracts worth over $2.4 billion, including a $2 billion offshore jack-up contract award and a $412 million integrated drilling services contract. 

The Abu Dhabi-listed company, the largest national driller for oil in the Middle East, also signed sale and purchase agreements for two premium offshore jack-ups and 16 newbuild hybrid power land rigs.

The interim dividend for the year is expected to increase by a minimum of 5 percent over last year and is due to be distributed by the end of October.