Adnoc Drilling makes $204m profit in second quarter

09 August 2022
Net profit in the first half of 2022 also grew by 34 per cent to $379m


Abu Dhabi National Oil Company's drilling business (Adnoc Drilling) registered a net profit of $204m for the second quarter of this year, representing a 19 per cent increase from the same period in 2021.

Adnoc Drilling also reported revenue of $669m in the second quarter of 2022, up 11 per cent over the same period last year, “driven primarily by the onshore and oil field services segments”, the company said in a statement.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) in the second quarter increased by 7 per cent from the previous quarter to $300m.

Adnoc Drilling also announced its financial results for the first half of 2022.

The Adnoc Group subsidiary’s net profit in the first half grew by 34 per cent to $379m, while revenue increased 13 per cent to $1.27bn compared to last year.

First-half Ebitda was $580m, up 16 per cent year-on-year, with a market-leading margin of 45.7 per cent, the firm said.

ALSO READ: Adnoc drilling investments proliferate

Adnoc Drilling’s board of directors announced an increase in the interim, half-year dividend of 5 per cent to $341m, 7.83 fils per ordinary share, in respect of the 2022 financial year, payable in the fourth quarter.

Adnoc Drilling reported a fleet utilisation rate of 98 per cent for the half year to 30 June.

The company added eight rigs to its fleet – five Helmerick & Payne FlexRigs were added in the first quarter, while sale and purchase agreements were signed for three premium offshore jack-ups in the second quarter.

The total value of these asset purchases forms part of the company’s three-year capital expenditure guidance of $2.5-3bn, as well as its strategic target to grow its rig fleet to 122 by the end of 2024.

Adnoc Drilling IPO

Adnoc Drilling completed a landmark initial public offering (IPO) last year, and its shares started trading on the Abu Dhabi Securities Exchange (ADX) on 3 October. The company raised over $1.1bn from the IPO of 11 per cent of the total issued capital.

Following the completion of the IPO, Adnoc Group retains an 84 per cent stake in Adnoc Drilling.

US oil field services company Baker Hughes’ 5 per cent stake in the firm, which it acquired as part of a $550m transaction with Adnoc in October 2018, remains unchanged.

US drilling services company Helmerich & Payne (H&P) holds 1 per cent through its IPO cornerstone investment. In return, Adnoc Drilling signed an agreement with H&P in December to acquire eight FlexRig land rigs from the latter for $86.5m.

In March, Adnoc Drilling announced becoming an inaugural member of FADX 15, a new tradable index created by ADX and FTSE Russell, “marking another significant milestone in the company’s history”.

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