Powered by the addition of 14 new drilling units in 2023, including four lease-to-own land rigs – thus making it one of the world’s largest owned and operated fleets consisting of 129 rigs – ADNOC Drilling delivered a net profit of $1.033 billion for the year 2023, up 29 percent year-on-year, while revenue grew 14 percent to reach $3.057 billion.
Announcing its financial results for the fourth quarter and full year ending 31 December 2023, ADNOC Drilling said its EBITDA for the full year increased by 20 percent to $1.483 billion, with EBITDA margin at 49 percent.
With its highest-ever number of operational rigs operating in the fourth quarter, the company achieved record revenue, EBITDA and net profit during the fourth quarter of 2023.
During Q4 2023, ADNOC Drilling’s revenue reached $841 million, up 15 percent compared to Q4 2022, while net profit grew by 41 percent to $329 million. EBITDA of $424 million was up 20 percent.
Abdulrahman Abdulla Al Seiari, Chief Executive Officer of ADNOC Drilling, commented: “Over the past 12 months, we have further demonstrated the strength of our unique business model, which directly benefits from ADNOC’s five million barrel per day capacity target, and has delivered outstanding business growth and results.
“Our ambitious fleet expansion strategy, coupled with the accelerated growth of Oilfield Services, has delivered exceptional bottom-line performance, beyond the expectations of the market.”
Revenue growth was driven primarily by the Offshore Jack-up and Oilfield Services (OFS) segments, increasing 31 percent and 37 percent respectively. All segments grew year-on-year as the company continued to execute on its fleet and OFS expansion strategy in support of the delivery of ADNOC’s production capacity target.
Onshore revenue for the full year was $1.5 billion, up 3 percent year-on-year, due to the contribution of new rigs which more than offset lower reimbursement of cost escalation claims. Revenue from Offshore Jack-up reached $800 million, a 31 percent increase compared to 2022, reflecting new jack-up rigs joining the fleet. Oilfield Services revenue reached $553 million, an increase of 37 percent.
ADNOC Drilling expects the growth story to continue in its full-year 2024 and medium-term guidances. The company expects its owned-rig count to reach a total of 142, including the four new lease-to-own land rigs by the end of the year.
The company expects total revenue between $3.60 to $3.80 billion, EBITDA of $1.70- $1.90 billion, with a margin range of 48 to 50 percent and net profit of $1.05-$1.25 billion. It expects CapEx to be between $750 to $950 million.
The Board has recommended a final dividend payment of $358 million for 2023 (8.22fils per share), subject to shareholders’ approval. The total dividend for 2023 was $717 million (16.45 fils per share), representing a 5 percent increase from last year.
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