ADNOC Drilling H1 profit $379mn

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Contracts worth over $3.4 billion awarded to ADNOC Drilling to accelerate offshore growth activities. (WAM)
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  • ADNOC Drilling revenue increased 13 percent to US$1.27 billion compared to the same period last year
  • First half EBITDA was $580 million, up 16 percent year-on-year, with a market-leading margin of 45.7 percent

ADNOC Drilling Company Tuesday announced its financial results for the half year ending 30th June, 2022. The company’s net profit for H1 grew by 34 percent to US$379 million, while revenue increased 13 percent to US$1.27 billion compared to the same period last year.

First half EBITDA was $580 million, up 16 percent year-on-year, with a market-leading margin of 45.7 percent, as the company made exceptional progress on delivering further cost savings.

Year-on-year revenue growth was led by the Onshore segment, as ADNOC Drilling continues to enable ADNOC’s program to grow production capacity.

The company’s Oilfield Services (OFS) segment also achieved strong year-on-year gains.

In line with ADNOC Drilling’s sustainable and progressive dividend policy, the Board of Directors announced an increase in the interim, half-year dividend of five percent to $341 million in respect of the 2022 financial year, payable in the fourth quarter.

The growth in dividend reflects ADNOC Drilling’s strong and visible future cash flow, while providing ample headroom to invest in long-term future growth.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO and Chairman of ADNOC Drilling, said, “ADNOC Drilling has continued to make strong progress in 2022 delivering on its promises to continue growing the business and maximizing returns for our shareholders.”

He said, “Excellent half-year results and successful strategic execution are testament to the vital role that the company is playing in enabling significant production capacity growth for ADNOC as well as the UAE’s objective to achieve gas self-sufficiency.”

Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, said, “These results were enabled by our clear strategic objectives, the commitment of our workforce and our unwavering commitment to industry-leading health and safety standards.”

He said, “Our fleet expansion program has gained real momentum and is central to our dynamic growth strategy. The rigs we have added to our fleet in H1 22 will support us in delivering on our resolute commitments to our shareholders, including ADNOC, as it works towards its production capacity targets and gas self-sufficiency for the UAE.”

ADNOC Drilling’s fleet expansion program enables the company to support a growing number of projects in the UAE, as evidenced by a number of contract awards in recent weeks.

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