Abu Dhabi’s ADNOC Drilling net profit rises 28% in Q2 2024

Abu Dhabi’s ADNOC Drilling reported on Monday a 28 per cent increase in quarterly net profit, with revenue boosted by the expansion of its operations across all business segments.

Net profit for Q2 2024 was $295m, up 28 per cent year-on-year (YoY) compared to $228m for the same period a year ago. Revenue increased to $1.8bn in three months to June 30 from $935m the previous year, up 29 per cent YoY.

The drilling firm said its earnings before interests, taxes, depreciation and amortisation (EBITDA) reached $472m in the April-June period, up 37 per cent YoY compared to the same period a year earlier, yielding a 50 per cent EBITDA margin.

Its board approved an interim dividend of $394m, more than 10 per cent YoY, equivalent to 9.0468 fils per share.

ADNOC Drilling’s fleet

With a fleet of 140 rigs, 136 owned plus four lease-to-own land rigs, ADNOC Drilling is the largest national drilling company in the Middle East region in terms of rig fleet size and has a market value of $18.6bn (Dhs68.2bn) as of August 5, 2024.

Meanwhile, the Abu Dhabi-listed firm secured a $733m contract from ADNOC Offshore earlier in July for the development of three island drilling rigs to advance operations at the offshore Zakum field. The company also secured a $1.7bn contract from ADNOC Group to provide drilling and associated services to recover unconventional energy resources in May.

ADNOC Drilling is an integral part of the UAE state-owned energy giant’s ambitious strategy to boost production capacity to 5 million barrels per day (bpd) by 2030.

The drilling firm maintained its 2024 guidance of $200-250m for the island rig segment, which currently operates ten island rigs. Since its initial public offering in the last quarter of 2021, the company has invested more than $2.2 bn in building its drilling rig fleet.

Read: ADNOC Drilling secures $733m contract for three island rigs