Adnoc Drilling announces 2023 net profit of more than $1 billion

The company achieved record revenue and net profit during the fourth quarter of the last year


  • Follow us on
  • google-news
  • whatsapp
  • telegram

Top Stories

Published: Mon 12 Feb 2024, 9:56 PM

Adnoc Drilling Company PJSC on Monday announced its financial results for the fourth quarter and full year ending 31st December 2023.

Revenue for the full year was $3.057 billion, up 14 per cent year-on-year, while EBITDA for the full year increased by 20 per cent to $1.483 billion with industry-leading EBITDA margin of 49 per cent.

Adnoc Drilling announced that the net profit for the full year increased by 29 per cent year-on-year to $1.033 billion with a margin of 34 per cent.

Abdulrahman Abdulla Al Seiari, Chief Executive Officer of Adnoc Drilling, said: "Over the past twelve months we have further demonstrated the strength of our unique business model, that directly benefits from Adnoc's five million barrel per day capacity target, and has delivered outstanding business growth and results. Our ambitious fleet expansion strategy coupled with the accelerated growth of Oilfield Services has delivered exceptional bottom line performance, beyond the expectations of the market. Looking ahead, Adnoc Drilling will remain dedicated to driving further efficiencies in our operational and financial performance, as we deliver enhanced value to our customers and shareholders."

The company achieved record revenue, EBITDA and net profit during the fourth quarter of 2023, driven by the highest-ever number of operational rigs, bolstering growth and charting a clear course for further expansion in 2024 and beyond.

During the fourth quarter of 2023, Adnoc Drilling delivered quarterly revenue of $841 million, up 15 percent year-on-year, EBITDA of $424 million, up 20 percent, and net profit of $329 million,up 41 percent.

The company added 14 new drilling units in 2023, including four lease-to-own land rigs, establishing one of the world's largest owned and operated fleets consisting of 129 rigs.

Adnoc Drilling's revenue for the year increased to $3.06 billion, up 14 per cent year-on-year. Revenue growth was driven primarily by the Offshore Jack-up and Oilfield Services (OFS) segments, increasing 31 per cent and 37 per cent respectively. All segments grew year-on-year as the company continues to execute on its fleet and OFS expansion strategy in support of the delivery of Adnoc's production capacity target.

Full-year EBITDA was $1.5 billion, with a margin of 49 per cent, as the Company continues to make excellent progress on the delivery of cost efficiencies. Net profit for the twelve-month period was a record $1.03 billion, up 29 per cent year-on-year.

Adnoc Drilling reported a fleet availability rate of 96 per cent for the year ending December 31, 2023, delivering exceptional revenue efficiency. Cash from operations decreased 11 per cent year-on-year to $1.4 billion supporting a free cash flow of US$306 million. Full-year 2023 capital expenditure was as anticipated $1,333 million, as the company delivered on its ambitious plans to expand its fleet to meet customer demand.

During the year, the company partnered with Alpha Dhabi Holding PJSC (Alpha Dhabi) to create Enersol, a strategic joint venture (JV) targeting value-accretive technology-enabled oilfield and energy service businesses globally across the OFS and energy value chain. The JV, of which the Company owns 51 percent of, underpins ADNOC Drilling's market-leading position as an integrated drilling services provider, powering its growth and expansion strategy by coinvesting up to US$1.5 billion across OFS and energy sectors.

The Board of Directors recommends a final dividend payment of US$358 million for 2023 (8.22fils per share), subject to shareholder approval at the upcoming Annual General Meeting (AGM). The total dividend for 2023 equals to $717 million (16.45 fils per share), representing a 5 percent year-on-year increase versus 2022. The final 2023 dividend is expected to be distributed in the first half of April 2024.

On the back of strong results, Adnoc Drilling announced its full year 2024 and medium-term guidance, reaffirming growth. The company continues to expect its owned rig count to total 142, including the 4 new lease-to-own land rigs, by the end of 2024.

The company expects total revenue between $3.60 to $3.80 billion, EBITDA of $1.70 - $1.90 billion, with a margin range of 48 percent - 50 per cent and Net Profit of $1.05 - $1.25 billion, with a margin range of 30 per cent - 33 per cent. Moreover, Adnoc Drilling expects CapEx to be between $0.75 - $0.95 billion, while maintaining a leverage ratio "Net debt/EBITDA" below 2x in 2024, excluding material M&A.

More news from Business