ABU DHABI, 10 May 2020 (WAM) – ADNOC Drilling, listed on the Abu Dhabi Securities Exchange, today announced its financial results for the first three-month period ending 31 March 2022.
Earnings after interest, tax, depreciation and amortization increased to AED 1 billion, with a margin of 46.6%, due to the company’s continued performance of strong results in cost efficiency. While net profit for the first quarter increased by 59.1% year-on-year to reach AED 642 million.
The company recorded strong revenue growth during this period to AED 2.206 billion, an increase of 14.9% over the same period last year.
This growth in annual revenue in all business sectors has come in line with the company’s maintenance on track to achieve its ambitious plans.
Revenue increased as the number of new drilling rigs increased to 104 after the launch of Helmreich & Bain’s world-class FlexRigs farmers, while the first quarter saw continued growth in oilfield services, driven by strong market share.
The company achieved strong growth in all business sectors as revenue from onshore drilling amounted to 1.171 billion dirhams during the first quarter of the year, an increase of 14.3% compared to the first quarter of 2021, driven by the start of two new onshore drilling rigs, AD-180 and AD-181, while foreign drilling revenue increased to 528 million dirhams in the first quarter of 2022, an increase of 4.3% compared to the first quarter of 2021, thanks to the start of the new foreign rig “Al Reem” and the increase in the number of operating days due to the decrease in the number of maintenance days due to changes in the schedule maintenance.
Revenue from artificial island excavators increased by 38.9% during the first quarter of 2022 to AED 184 million compared to the same period last year, after arrangements were made to equip the four excavators on artificial islands in the results of the first half of 2021
Revenue from oil rights services increased by 25.7% during the first quarter of 2022 compared to the first quarter of last year, to 323 million dirhams, due to the strong growth in hydraulic fracturing activities, electronic and wired recording of drilling information and drilling operations, in addition to the growth in the mixing services sector and liquid clay. While the company’s market share in the integrated drilling services sector reached 45% on 31 March 2022.
During the three months, the company recorded a high rate of operation of the rig fleet by 95%, as 145 boreholes have been drilled so far this year, with a total of 0.95 million feet.
Abdul Rahman Abdullah Al-Sayari, CEO of ADNOC Drilling, said at the event: “We are pleased with the company’s performance during the first three months of 2022, as ADNOC Drilling recorded strong growth in revenue and profits, with the number outfits owned. by increasing the company to 104, and listing the company.On the new “Fadax 15” index within the Abu Dhabi Securities Exchange, which confirms the importance and attractiveness of the company as a large part of the capital market in Abu Dhabi and one of the leading providers of drilling services in the region and focuses on achieving attractive returns for shareholders.
Al-Saiari added: “In line with the growth in revenue, the profitability measures in ADNOC Drilling have maintained their strength as the company has achieved the highest figures in the market and twice the average figures achieved in this field. in terms of profit margin after deduction of interest, tax, depreciation and amortization. At the same time. We continue to benefit from our diverse services across the entire drilling value chain to increase our stake in the integrated drilling services market, which is 45% at the end of the current quarter of 2022, and we are confidently looking forward to the next year as we gradually moving the path to achieving the desired results of the rig procurement program.Investing in technology for further growth.
ADNOC Drilling is an essential pillar in achieving ADNOC’s ambitious plans to increase its crude oil production capacity to 5 million barrels per day by 2030 and to achieve self-sufficiency in gas for the UAE. The company continues to focus on improving security and safety and increasing the efficiency of its operations, in order to maintain the excellent level to which customers are accustomed, which in turn leads to the achievement of additional improvements in safety procedures and the operation of excavators.
On March 22, 2022, it was announced that ADNOC Drilling had joined the fifteen members included in the FTSE Russell Abu Dhabi Securities Exchange 15 Index / FADAX 15 /, as a new achievement added to the company’s rich history. This index was developed under the strategic partnership of the Abu Dhabi Stock Exchange with FTSE Russell, to track the performance of the largest and strongest companies listed on the Abu Dhabi Stock Exchange.