Adnoc Drilling revs up its latest set of financials, as 'two-pronged strategy' pays off handsomely. Image Credit: Supplied

Dubai: Adnoc Drilling hit a growth momentum in the first nine months, with net profit zooming to $704 million from a 24 per cent year-on-year rise. This is from revenue growth of 14 per cent to $2.2 billion.

Contracts and demand for its oilfield services was the prime driver, with third quarter numbers showing revenue at $776 million (up 16 per cent) and net profit delivering $257 million (a super-charged 36 per cent gain).

“These results demonstrate the Company’s ability to continue to deliver profitable growth as we maintain our safe, efficient and sustainable operations,” said Abdulrahman Abdulla Al Seiari, CEO.

“Long-term shareholder value creation remains central to our strategy and future development.”

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Adnoc Drilling is on to a ‘two-pronged strategy’ of expanding its fleet and service offering. The company now has a fleet of 134 operational rigs, and the ‘accelerated fleet expansion since IPO underpins our growth targets, while boosting revenue as incoming rigs commence operations’.

Jordan win
In the fourth quarter, Adnoc Drilling set out on its 'international growth journey', by providing integrated drilling services in Jordan. The economics of that are 'in line with existing returns achieved in Abu Dhabi'.

This month, Adnoc Drilling and Alpha Dhabi agreed on a JV to invest up to $1.5 billion to acquire tech-enabled companies in the oilfield services and energy sectors.

Full-year 2023 numbers

The company now expects 2023 revenues of between $3 billion to $3.2 billion and net profit of around $1 billion (against the earlier forecast of $850 million to $1.0 billion), with a margin range of 29-32 per cent (previously 28-31 per cent).

Plus, Adnoc Drilling now expects its full-year capex to be around $1.3 billion for 2023 (against earlier estimates of $1.30 billion to $1.75 billion). “Our positive third-quarter results clearly demonstrate the effective execution of our comprehensive strategy to grow earnings by expanding our fleet and our service offering," said Al Seiari in a statement.

New loan
Adnoc Drilling in October confirmed a new syndicated loan for $1.5 billion and also entered a dirham revolving credit facility of Dh1.84 billion. The term loan facility will be used to repay an existing syndicated term loan for an equal amount which expires in November 2023.

"The new revolving credit facility will fund the company’s growth and associated working capital," Adnoc Drilling said in a statement.