An Adnoc drilling rig. The company has reported a sharp rise in its first-quarter net profit. Photo: Adnoc
An Adnoc drilling rig. The company has reported a sharp rise in its first-quarter net profit. Photo: Adnoc
An Adnoc drilling rig. The company has reported a sharp rise in its first-quarter net profit. Photo: Adnoc
An Adnoc drilling rig. The company has reported a sharp rise in its first-quarter net profit. Photo: Adnoc

Adnoc Drilling's first-quarter net income surges 59% on revenue growth


Sarmad Khan
  • English
  • Arabic

Adnoc Drilling, the largest national drilling company in the Middle East by rig fleet size, reported a more than 59 per cent jump in its first-quarter net income, as its fleet grew and revenue climbed on the back of strong performance from all business segments.

Net profit for the three-month period to the end of March rose to $175 million, Adnoc Drilling, a unit of Abu Dhabi National Oil Company (Adnoc), said in a bourse filing on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue for the reporting period rose almost 15 per cent to $601m as the company continued to support Adnoc’s efforts to boost its production capacity.

“As our revenues have grown, our profitability metrics have remained equally strong, with a market-leading Ebitda margin that is almost twice the industry average,” Abdulrahman Al Seiari, chief executive at Adnoc Drilling, said.

“At the same time, we are continuing to leverage our differentiated offering across the entire drilling value chain to further increase our share in the integrated drilling services market, which stood at 45 per cent at the end of the quarter.”

Growth was delivered across all business segments and the company firmly remains on track to deliver on its ambitious growth plans, he added.

Adnoc Drilling raised more than $1.1 billion in September last year from its initial public offering, which was oversubscribed more than 31 times.

The state-owned oil and gas major Adnoc remains the company's majority shareholder, with an 84 per cent stake. US energy services company Baker Hughes, which entered into a partnership with Adnoc Drilling in October 2018, has 5 per cent and US contract oil and gas driller Helmerich & Payne holds 1 per cent in the company.

The company's revenue from onshore operations climbed more 14 per cent to $319m in the first three months of the year as two more rigs started operations. Offshore Jackup operations revenue rose 4.3 per cent to $144m, offshore island revenue surged almost 39 per cent to $50m, and oilfield services revenue for the reporting period rose about 26 per cent to $88m.

Adnoc Drilling's overall quarterly revenue was boosted by new rigs joining the fleet in the first quarter.

The company's owned rig fleet reached 104 at the end of the reporting period. Its fleet utilisation rate has reached 96 per cent, with a total of 145 wells drilled in the year to date, totalling close to a million feet.

"We look forward with confidence to the year ahead, as we deliver on our rig acquisition programme and our investment in technology to unlock further growth.”

As our revenues have grown, our profitability metrics have remained equally strong, with a market-leading Ebitda margin that is almost twice the industry average
Abdulrahman Al Seiari,
chief executive, Adnoc Drilling

In December, Adnoc Drilling signed a deal with Helmerich & Payne to improve its land rig operational performance. The Rig Enablement Framework Agreement will also support Adnoc Drilling’s growth and expansion plans.

Also in December, Adnoc Drilling agreed a five-year $3.8bn contract with Adnoc Onshore to continue providing drilling, workover and other well services that will drive efficiency in work crews, rig move time and maintenance scheduling.

"Adnoc Drilling remains a key enabler of Adnoc's ambitious growth targets, which will deliver 5 million barrels daily production capacity by 2030 and realise gas self-sufficiency for the UAE," Mr Al Seiari said. "The company continues to focus on delivering the safe and efficient operations."

The biog

Marital status: Separated with two young daughters

Education: Master's degree from American Univeristy of Cairo

Favourite book: That Is How They Defeat Despair by Salwa Aladian

Favourite Motto: Their happiness is your happiness

Goal: For Nefsy to become his legacy long after he is gon

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

How it works

Booklava works on a subscription model. On signing up you receive a free book as part of a 30-day-trial period, after which you pay US$9.99 (Dh36.70) per month to gain access to a library of books and discounts of up to 30 per cent on selected titles. You can cancel your subscription at any time. For more details go to www.booklava.com

WHY%20AAYAN%20IS%20'PERFECT%20EXAMPLE'
%3Cp%3EDavid%20White%20might%20be%20new%20to%20the%20country%2C%20but%20he%20has%20clearly%20already%20built%20up%20an%20affinity%20with%20the%20place.%3Cbr%3E%3Cbr%3EAfter%20the%20UAE%20shocked%20Pakistan%20in%20the%20semi-final%20of%20the%20Under%2019%20Asia%20Cup%20last%20month%2C%20White%20was%20hugged%20on%20the%20field%20by%20Aayan%20Khan%2C%20the%20team%E2%80%99s%20captain.%3Cbr%3E%3Cbr%3EWhite%20suggests%20that%20was%20more%20a%20sign%20of%20Aayan%E2%80%99s%20amiability%20than%20anything%20else.%20But%20he%20believes%20the%20young%20all-rounder%2C%20who%20was%20part%20of%20the%20winning%20Gulf%20Giants%20team%20last%20year%2C%20is%20just%20the%20sort%20of%20player%20the%20country%20should%20be%20seeking%20to%20produce%20via%20the%20ILT20.%3Cbr%3E%3Cbr%3E%E2%80%9CHe%20is%20a%20delightful%20young%20man%2C%E2%80%9D%20White%20said.%20%E2%80%9CHe%20played%20in%20the%20competition%20last%20year%20at%2017%2C%20and%20look%20at%20his%20development%20from%20there%20till%20now%2C%20and%20where%20he%20is%20representing%20the%20UAE.%3Cbr%3E%3Cbr%3E%E2%80%9CHe%20was%20influential%20in%20the%20U19%20team%20which%20beat%20Pakistan.%20He%20is%20the%20perfect%20example%20of%20what%20we%20are%20all%20trying%20to%20achieve%20here.%3Cbr%3E%3Cbr%3E%E2%80%9CIt%20is%20about%20the%20development%20of%20players%20who%20are%20going%20to%20represent%20the%20UAE%20and%20go%20on%20to%20help%20make%20UAE%20a%20force%20in%20world%20cricket.%E2%80%9D%C2%A0%3C%2Fp%3E%0A
Updated: May 10, 2022, 7:16 AM`