Adnoc Drilling 9-month revenue surges 12% to $1.7 billion

Adnoc Drilling Company on Wednesday reported 12 per cent increase in nine-month revenues to $1.7 billion and nine per cent growth in net profit due to new rigs and the reactivation of rigs in 2021.

In a statement, the Abu Dhabi-listed company said in its first quarterly disclosure since its record listing on the Abu Dhabi Securities Exchange (ADX) in early October 2021 said the company’s EBITDA of $785 million surpassed targets with a very healthy margin of 46 per cent during the January-September 2021 period.

For the third quarter, Adnoc Drilling reported revenues of $571 million, up 11 per cent year-on-year basis, and EBITDA of $285 million, representing a 50 per cent margin in the quarter.

“With double-digit revenue growth, Adnoc Drilling has demonstrated exceptional financial performance and commercial resilience, reflected in a very robust third-quarter. These impressive results follow Adnoc Drilling’s record ADX listing in early October, and were well above market forecasts,” Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Adnoc managing director and Group CEO, and chairman of Adnoc Drilling, said.

He said Adnoc Drilling sits at the heart of Adnoc’s ambitious growth plans and is critical in enabling the group to achieve its significant production capacity growth targets and help the UAE achieve gas self-sufficiency.

“Adnoc will remain a committed, long-term majority shareholder in Adnoc Drilling as the company continues on its exciting growth trajectory while delivering attractive returns for shareholders,” he said.

Onshore revenue soars

The onshore revenue for the nine-month period was $847 million, up 10 per cent compared to the same period last year, largely driven by new rigs and the reactivation of rigs in 2021. Third quarter 2021 revenue was $279 million, up nine per cent year-on-year basis.

Offshore-jackup revenue increased during the nine-month period to $450 million from $443 million in the same period last year, supported by an increase in operating activity of its jack-up rigs. Third quarter 2021 revenue was $157 million, down two per cent year-on-year basis.

Offshore-Island revenue was up 11 per cent to $166 million for the first nine months of 2021 compared to the same period last year. Third quarter 2021 revenue was $61 million, up 45 percent year-on-year.

“Coming shortly after our landmark IPO, these very strong financial and operational results underpin an ambitious growth plan that is built on the quality and diligence of our people, who have worked tirelessly to achieve safe and efficient operations while at the same time growing our business,” Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling, said.

He said Adnoc Drilling remains active in a number of mega-tenders in Abu Dhabi, while also pursuing the further expansion of its discrete services portfolio and increased market share in the OFS segment. “If awarded, these tenders will expand the Company’s portfolio outside of the Integrated Drilling Services (IDS) segment, with awards expected during 2022,” he said.

— muzaffarrizvi@khaleejtimes.com