ABU DHABI, ADNOC Drilling Company PJSC today announced its financial results for the nine months and third quarter ended 30th September 2022.
ADNOC Drilling’s net profit for the nine-month period grew significantly, by 24 percent to US$568 million, while revenue increased 15 percent to US$1.94 billion compared to the same period last year. Nine-month EBITDA was US$879 million for 2022, up 12 percent year-on-year, at an industry-leading EBITDA margin of 45.3 percent.
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 percent year-on-year to US$671 million, driven primarily by the Onshore and OFS segments. Third quarter EBITDA increased by 5 percent year-on-year to US$299 million for the period. Net profit for the third quarter grew by 6 percent year-on-year to US$189 million.
Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, commented, “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. Our accelerating rig fleet expansion program 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.
“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. 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.”
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 percent as at 30th September 2022.
Al Seiari concluded, “As we celebrate our first anniversay as an ADX-listed company, we are proud of the value we have created for shareholders, with our progressive dividend policy having distributed US$666.25 million to investors since listing. At the same time, we have added more than US$13 billion of contract backlog, achieved strong top- and bottom-line growth, and expanded our owned rig fleet from 95 to 108. We are excited for the year ahead, and look forward to continued growth in 2023 and beyond.”
Onshore: Revenue for the nine-month period was US$1,074 million, up 27 percent year-on-year, largely driven by new rigs joining the fleet. 3Q 2022 revenue was US$372 million, up 33 percent year-on-year.
Offshore Jackup: Revenue for the nine-month period was US$431 million, broadly flat versus the prior year. 3Q 2022 revenue was US$143 million and, due to planned maintenance, down 9 percent year-on-year. During the third quarter, ADNOC Drilling was awarded two contracts at a combined value of US$3.4 billion to provide eight jack-up rigs to ADNOC Offshore.
Offshore Island: Revenue for the nine-month period was US$153 million, similar to 2022. 3Q 2022 revenue of US$52 million was down 14 percent year-on-year due to a one-off claim concluded and recognised in 3Q 2021. During the third quarter, ADNOC Drilling was awarded a US$711 million contract for the provision of four Island Drilling Units for up to ten years for ADNOC’s Hail and Ghasha Development Project.
Oilfield Services (OFS): The OFS segment performed very well in the nine-month period, with revenue of US$282 million, up 22 percent year-on-year, driven by higher activity from continued expansion, with healthy margin development. 3Q 2022 revenue was US$103 million, up 40 percent year-on-year. During the third quarter, the OFS business was awarded contracts totalling US$1.3 billion by ADNOC for the Hail and Ghasha Development Project, to provide integrated drilling services and fluids for up to ten years. In addition, OFS was awarded a US$23 million contract by ADNOC Onshore for up to five years’ supply of production chemicals; as well as a four-year US$2 million well-head maintenance contract by Al Dhafra Petroleum.
The Company has accelerated its rig fleet expansion program during the course of 2022, and in the third quarter signed two sale and purchase agreements to acquire a further three premium jack-up drilling units for US$210 million.
Source: Emirates News Agency