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Adnoc Drilling net profit rises 33% to $802m in 2022

Truck, Vehicle, Transportation Adnoc
Adnoc Drilling's results were largely driven by new rigs entering its operational fleet

Abu Dhabi-listed Adnoc Drilling reported an increase of 33 percent in 2022 net profit, as revenue was boosted by onshore and oilfield services businesses.

Net profit for 2022 stood at $802 million, up from $604 million in 2021. On the other hand, revenue increased to $2.67 billion in 2022 from $2.27 billion in 2021, an increase of 17.6 percent year-on-year.

In a filing to Abu Dhabi stock exchange, the company said its results were mostly driven by new rigs entering its operational fleet, with the total number of rigs reaching 115.

Abdulrahman Abdulla Al Seiari, CEO of Adnoc Drilling, said that the company has a backlog of over $10 billion of contracts awarded last year by its long-term customers.

“We are excited about the year ahead as we accelerate our business growth and build out our assets to enable Adnoc to realise its 2027 capacity targets.”

Adnoc Drilling released its first ever year-ahead guidance for 2023. The company expects total revenue of between $3 and $3.2 billion, resulting in growth of up to 20 percent year-on-year. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is expected to be between $1.35 and $1.5 billion, with a healthy margin of 45 to 47 percent.

The firm has forecast record net profit of $850 million to $1 billion in 2023. Capital expenditure is forecast to be in a range of $1.3 to $1.75 billion this year, while the leverage ratio target will be maintained below 2.0x.

The final dividend for 2022 is expected to increase by a minimum of five percent, the statement said.