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Adnoc Drilling Reports Robust Q3 Results with 36% of Net Profit

Adnoc Drilling Company's third-quarter financial results were excellent, with a net profit of $257 million.

Adnoc Drilling Company has announced impressive third-quarter financial results, reporting a net profit of $257 million, marking a substantial 36% year-on-year increase. 

The company attributes this growth to a combination of expanded fleet capacity and effective cost management initiatives.

Revenue Climbs 16% YoY to $776 Million:

Revenue for the third quarter rose to $776 million, demonstrating a notable 16% year-on-year increase. 

The company’s positive performance was evident across all segments, underscoring the effectiveness of its growth strategies and operational efficiency.

Ebitda Reaches $381 Million, Reflecting 27% YoY Growth:

Adnoc Drilling’s third-quarter Ebitda reached $381 million, indicating a robust 27% year-on-year growth. 

The positive financial outcome was attributed to strong top-line growth and efficient cost management practices, resulting in an Ebitda margin of 49%.

For the first nine months of 2023, Adnoc Drilling reported a 14% year-on-year increase in revenue, reaching $2.2 billion. 

Net profit for the same period saw a substantial 24% year-on-year growth, totaling $704 million. Ebitda for the first nine months increased by 20% year-on-year, reaching $1,058 million.

Strategic Fleet Expansion and Service Offering Drive Growth:

Adnoc Drilling attributes its positive performance to a two-pronged strategy focusing on expanding its fleet and enhancing its service offering. 

The company now boasts a total fleet of 134 operational rigs, with ongoing fleet expansion aimed at achieving growth targets and boosting revenue.

OFS Revenue Reaches $145 Million, Up 41% YoY:

Adnoc Drilling’s Oilfield Services (OFS) segment reported revenue of $145 million in Q3 2023, representing a substantial 41% year-on-year increase. 

The company’s emphasis on advanced technologies and efficiency improvements in OFS has contributed to improved well delivery times and emissions reduction.

Adnoc Drilling has maintained a commitment to sustainable operations and decarbonization initiatives. The company’s investment in 16 newbuild hybrid land rigs, expected to join the fleet in 2024, aligns with its goal of achieving emissions reduction. 

Additionally, initiatives such as connecting central camps to the grid and the adoption of solar power underscore Adnoc Drilling’s dedication to environmental sustainability.

International Expansion and Joint Venture Agreement:

Adnoc Drilling is set to embark on its international growth journey by providing integrated drilling services in Jordan, with expected returns in line with its existing achievements in Abu Dhabi. 

The company’s joint venture agreement with Alpha Dhabi Holdings, involving an investment of up to $1.5 billion, aims to acquire technology-enabled companies in the Oilfield Services (OFS) and energy sectors, paving the way for significant future growth.

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