ADNOC Drilling's offshore and onshore services have seen revenue bumps. Image Credit: Supplied

Dubai: Abu Dhabi’s ADNOC Drilling Co.’s first-half 2022 revenues are at Dh1.27 billion, a healthy 13 per cent gain on first-half 2021. The net profit growth for the latest period is even more robust, up 34 per cent to $379 million, while margin is 30 per cent.

The Board of Directors has confirmed an interim dividend that will be a 5 per cent increase to 7.83 fils, bringing the first payment of fiscal year 2022 to $341 million.

ADNOC Drilling's revenue flow has been further bolstered by new contracts from ADNOC. "The company’s significant fleet expansion program is central to the dynamic growth strategies of ADNOC and enables support to a growing number of world-scale projects in the UAE," said a statement. "The company plans to double its delivery of IDS wells in 2022, and double its IDS-capable fleet by 2024, which will support the doubling of OFS revenues by 2025."

More billion dollar wins

On July 27, ADNOC Drilling was awarded $2 billion for offshore drilling units and Integrated Drilling Services (IDS) to support the delivery of ADNOC’s Ghasha offshore gas mega-project. "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," said Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Chairman of ADNOC Drilling.

In the first six months, ADNOC Drilling’s fleet utilization rate was at 98 per cent. Eight rigs were added to the fleet. Five Helmerick & Payne FlexRigs were brought in during Q1-22, and sale and purchase agreements signed for three premium offshore jack-ups in Q2-22. The total value of these forms part of the Company’s three-year capital expenditure guidance of $2.5 billion to $3 billion, as well as its ‘strategic roadmap to grow the fleet to 122 rigs by the end of 2024’.

"The rigs we have added to our fleet in H1-22 will support us in delivering on our resolute commitments to our shareholders, including ADNOC, as it works towards its production capacity targets and gas self-sufficiency for the UAE," said Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling.

How the individual units fared for ADNOC Drilling in H1-22

  1. Onshore: Revenue for the first-half was $702 million, up 24%, with new rigs joining. Second quarter revenue was $383 million, up 33% y-o-y.
  2. Offshore jackup: Revenues were $288 million, broadly flat vs. the prior year. The Q2-22 revenue was $144 million, down 8% vs. Q2 21 due to the activity mix and delays in the replacement of rented rigs with owned units.
  3. Offshore island: Revenue was $101 million, similar to H1-21. Q2-22 revenue of $51 million was down 26% year-on-year due to accounting movements in the prior period.
  4. Oilfield services: The OFS segment performed well in the first-half with revenues of $179 million, up 14%, driven by higher activity from continued expansion, with healthy margin development. Q2-22 revenue was $91 million, up 5% year-on-year.