On Tuesday, ADNOC Drilling became the second listed entity from ADNOC Group to weigh in healthy growth in the first quarter. The fuel retailer ADNOC Distribution was the other. Image Credit: Supplied

Dubai: ADNOC had a good day with its listed subsidiaries, with ADNOC Drilling recording $601 million in first quarter revenues, growing both year-on-year (by 15 per cent) and quarter-on-quarter (5 per cent). Fleet growth and its utilisation rate propelled net profit to $175 million, up 59.1 per cent.

Its oilfield services and offshore island contracts delivered the highest growth, with latter generating revenues of $50 million. Oilfield work provided another $88 million.

“As our revenues have grown, our profitability metrics have remained equally strong, with a market-leading EBITDA margin that is almost twice the industry average,” said Abdulrahman Abdullah Al Seiari, CEO. “At the same time, we are continuing to leverage our differentiated offering across the entire drilling value chain to further increase our share in the Integrated Drilling Services market, which stood at 45 per cent at the end of the quarter.

“We look forward with confidence to the year ahead, as we deliver on our rig acquisition program and our investment in technology to unlock further growth.”

ADNOC Drilling’s future growth will also ride on ADNOC’s ambitions, which will deliver 5 million barrels a day of capacity by 2030 and also realise gas self-sufficiency for the UAE.

Fleet upgrades

The company is on track for its rig acquisition programme, with the owned fleet growing to 104 rigs with the new Helmerich & Payne F commencing operations.

For the first three months, ADNOC Drilling had a fleet utilization rate of 96 per cent, with a total of 145 wells drilled in the year-to-date, totalling 0.95 million feet.