Dubai: ADNOC Drilling - fresh from a record IPO - recorded revenues of $2.27 billion for 2021, a solid 8.2 per cent year-on-year gain. Net profit came to an impressive $604 million, with the ADNOC subsidiary benefiting from strong growth in its oilfield equipment and services division.
The company's Board of Directors has recommended a final dividend of $325 million for the second-half of 2021. ADNOC Drilling, which raised $1.1 billion from the IPO, was listed on ADX last October.
The latest payout would then bring the total dividend for 2021 to $685 million, "in line with the guidance we provided at the time of the IPO," said Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO. "We are also able to reconfirm our guidance objective of 5 per cent annual growth in dividend per share from 2022-26.”
The strong full-year results and successful strategic execution are testament to the vital role the company is playing in enabling significant production capacity growth for ADNOC as well as the UAE’s objective to achieve gas self sufficiency
Onshore gains driven by new rigs
In the onshore side of the business, revenue for the full year was $1.14 billion, which is up 6 per cent over 2020. This was in the main brought on by new rigs and rig reactivations.
The final quarter revenue was, however, down 4 per cent to $293 million from a year ago, “impacted by stacking claim receipts booked in the comparative period”. Outside of that, the overall operating rig days and underlying revenue in Q4-21 was higher than in the corresponding period. (Net debt as at December 31 last was $1.086 billion.)
- ADNOC Drilling's cash from operations increased 7per cent year-on-year to $1.085 billion.
- Capital expenditure for 2021 increased 34 per cent to $505 million. The Q4-21 capex was slightly lower than in the third quarter, as rig acquisitions were mostly executed in the previous quarter.
“We remain very enthusiastic about the year ahead as we build out our drilling assets and oilfield services with our strategic partners Baker Hughes and Helmerich & Payne,” said Abdulrahman Abdullah Al Seiari, CEOof ADNOC Drilling. “Technology and innovation will be at the heart of that programme, and we are looking forward to reporting on a number of important milestones for the company in the months to come.”
The oilfield services “performed well” through the year, driven by continued expansion. The OFS revenue for the full-year put in a most impressive 48 per cent to $329 million. Even the final quarter of 2021 held up well, with revenues at $98 million, up 44 per cent year-on-year.
