Adnoc Drilling first quarter profit rises 26%

Reuters/Amir Cohen

Adnoc Drilling said its net profit in the first quarter rose 26 percent year on year to $275 million, supporting its full-year profit guidance of more than $1.2 billion.

Revenue increased 24 percent year on year to $886 million, beating market expectations, thanks to accelerated fleet expansion and oilfield services growth. 

The offshore jack-up and oilfield services segments supported revenue growth, increasing 51 percent and 16 percent, respectively, year on year.  

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The board of the Adnoc subsidiary recommended a new and progressive dividend policy, which is expected to grow by at least 10 percent per annum from 2024 to 2028. 

By the end of the first quarter, Adnoc Drilling’s fleet reached 137 rigs, 133 owned plus four lease-to-own land rigs, an increase of 22 rigs year on year. 

In another bourse filing, Abu Dhabi-listed Adnoc Drilling was awarded a $1.7 billion contract from Adnoc to provide drilling and associated services for the recovery of unconventional energy resources.

• Adnoc Drilling and Alpha Dhabi to surpass 3-year $1.5bn target
• Adnoc Drilling 2023 profit jumps 29% to $1bn
• Adnoc Drilling focuses on expansion outside UAE

The company has incorporated a new company, Turnwell Industries, which will be primarily engaged in unconventional drilling operations.

“Abu Dhabi’s unconventional energy resources are among the world’s largest. This award, for 144 wells is just the beginning,” said Adnoc Drilling CEO Abdulrahman Al Seiari.

The contract is expected to start contributing to the company’s revenue towards the second half of 2024.