ADNOC Drilling, a subsidiary of state-owned oil company ADNOC, reported today a significant increase in its first half net profit, which grew by 34% to $379 million while revenues jumped 13% to $1.27 billion compared to the same period last year.
The company’s second-quarter revenue grew 11% year-on-year to $669 million, driven primarily by the onshore and OFS segments as ADNOC drilling continued supporting Abu Dhabi’s efforts to increase its production capacity.
“These results were enabled by our clear strategic objectives, the commitment of our highly-skilled and dedicated workforce and our unwavering commitment to industry-leading health and safety standards,” Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling, said in a statement.
ADNOC Drilling’s fleet expansion program
The company’s rig fleet expansion program gained further momentum in H1 22, with eight rigs added to the fleet, ADNOC Drilling said.
Additionally, five Helmerick & Payne FlexRigs were added in Q1 22 and sale and purchase agreements were signed for three premium offshore jack-ups in Q2 22. The total value of these acquisitions forms part of the company’s three-year capital expenditure guidance of $2.5 to $3 billion, as well as its strategic roadmap to grow the fleet to 122 rigs by the end of 2024.
The board of directors announced an increase in the interim, half-year dividend of 5% to $341 million, 7.83 fils per ordinary share, in respect of the 2022 financial year, payable in the fourth quarter. ADNOC Drilling said its strong cash flow provides ample headroom to invest in long-term future growth.
HE Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC managing director and group CEO, and chairman of ADNOC Drilling, commented: “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.”
