ADNOC Drilling anticipates to end of 2024 with a significant rise in its net profit, which the projected to be between $1.15 billion and $1.3 billion.
The company’s net profits stood at $570 million during the first half of 2024.
“It [net profit] is expected to record around $730 million in the second half of the year,” Youssef Salem, Chief Financial Officer of ADNOC Drilling, told WAM.
He said the anticipated rise in profit is due to the significant expansion across all of the company’s operations and the full operational impact of the onshore and offshore rigs that were brought online during the previous period.
He also said ADNOC Drilling has raised its medium-term revenue expectations to $3.85 billion for the fiscal year 2024.
This will include $1.75 billion onshore drilling revenues, $1.1 billion offshore drilling revenues, $250 million revenues from the artificial islands sector, and $800 million from the oilfield services sector.
The ADNOC Drilling Chief Financial Officer also said the company’s capital expenditures for 2024 are expected to be in the range of AED 750 million – AED 950 million, mainly on account of the ongoing rig acquisitions.
He said the company has accelerated its growth plans to support ADNOC in achieving its strategic goal of increasing production capacity from 4 million to 5 million barrels per day by 2027.
He said the company’s rig fleet expanded to 140 rigs by the end of the first half of this year, comprising 95 onshore rigs and 45 offshore rigs, up from 137 rigs at the end of the first quarter.
He expected the fleet to reach 142 rigs by the end of this year and to grow further to 148 rigs by 2026, in response to increasing customer demand.
He said ADNOC Drilling completed three acquisitions in the first half of this year, totalling $550 million, while a new acquisition is expected to be made in the United States during the second half of the year, bringing the total value of the four acquisitions in 2024 to $750 million.
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