Abu Dhabi, UAE — ADNOC Drilling Company’s first half net profit increased by 18 percent to $446 million due to an expansion in fleet and services.
ADNOC Drilling’s first half revenue increased to $1.4 billion, up 13 percent year-on-year. Revenue growth was driven by the Oilfield Services (OFS) and Offshore Jack-Up segments which increased by 45 and 31 percent respectively.
First half EBITDA increased significantly by 17 percent year-on-year to $677 million, due to the uptick in revenue coupled with the delivery of substantial cost savings, leading to an exceptional EBITDA margin of 47 percent.
Second quarter revenue grew by 8 percent year-on-year to $724 million and by percent sequentially. EBITDA in the quarter increased by 15 percent year-on-year to $344 million, leading to a 48 percent EBITDA margin, or 3 percentage points higher year-on-year. EBITDA also increased by 3 percent sequentially.
Second quarter net profit grew 12 percent year-on-year and 4 percent sequentially to $228 million.
Onshore half-year 2023 revenue of $701 million is broadly in line with last year. The increase of revenue, driven by new rigs entering the fleet from the second half 2022, was offset by lower year-on-year reimbursement of cost escalation claims, particularly due to a reduction of diesel prices.
Second quarter revenue decreased 10 percent year-on-year, as the same period of last year was positively impacted by recovery of higher fuel costs, in-line with contractual terms. The drop in diesel prices and associated reimbursements led to a 3 percent sequential revenue decrease.
Offshore Jack-Up half-year revenue grew by 31 percent to $376 million, due to introduction of five new jack-ups into the operational fleet during the second half of 2022. These additional rigs have positively impacted second quarter revenue which has increased by 33 percent year-on-year and by 4 percent sequentially.
Abdulrahman Abdulla Al Seiari, Chief Executive Officer, ADNOC Drilling, said, “We progressed on our goal to expand the fleet, signing agreements to build 16 hybrid powered land rigs, which also form a significant additional element of our decarbonization strategy.”
During the first half of 2023, ADNOC Drilling announced the signing of contracts worth over $2.4 billion, consisting of a $2 billion offshore jack-up contract award and a $412 million integrated drilling services contract.