ADNOC Drilling's 2022 net profit powers to $802m, plans to raise capex to $2.5b by 2024
ADX-listed ADNOC Drilling aims big with more projects, higher capex
Dubai: ADNOC Drilling has powered to a $802 million profit for 2022 against $603.91 million a year ago, helped by a slew of project wins from its parent entity. Revenues came to $2.67 billion, up from $2.26 billion.
"The increase in revenue was due to increase in rig fleet and additional drilling services provided to ADNOC Onshore and ADNOC Offshore," the company said.
For 2023, ADNOC Drilling is projecting revenues to be in the $3 billion to $3.2 billion range, while capex could be around $1.3 billion to $1.75 billion. “We now expect additional capex over the coming two-year period ending 2024 between $2 billion to $2.5 billion, a net increase of some $1 billion over and above the original guidance.,” the ADX-listed company said in a statement.
Full year 2022 capex increased 62 per cent to $942 million for an accelerated rig acquisition program, where it added 16 drilling units and 'establishing one of the world’s largest drilling and well completion fleets consisting of 115 rigs'.
“We remain very enthusiastic about the year ahead as we focus towards supporting three key pillars – gas self-sufficiency, development of unconventional, continued expansion of OFS (oil field services) and pursuit of both regional expansion opportunities and new revenue streams.”
We anticipate a new record net profit of $850 million to $1 billion, again continuing the growth from $600 million in 2021 to $800 million in 2022 and now to this new level in 2023
Dividends
ADNOC Drilling's stated policy is to pay out semi-annual dividends. "The dividend policy is progressive, reflecting robust underlying cashflow, and the annual distribution is expected to grow by at least 5 per cent per annum on a dividend per share basis over the next four years (2023-26)," the Abu Dhabi entity added.
In April 2022, the Board approved a dividend for H2-2021 of $325 million (which was distributed in May 2022). An interim cash dividend for H1-2022 totaling $341.25 million was distributed in September 2022.
"I am particularly pleased with the over $10 billion of contract backlog we were awarded in the year by our long-term, highly supportive customers," said Abdulrahman Abdulla Al Seiari, CEO. "We are excited about the year ahead as we accelerate our business growth and build out our assets to enable ADNOC to realize its 2027 capacity targets, and we have released updated guidance accordingly.”
The company has made great progress in 2022, firmly establishing its position as the largest drilling and well completions company in the Middle East by fleet size, owning and operating one of the largest multi-discipline drilling fleets in the world