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Abdul Rahman Abdullah Al-Saiari, CEO of ADNOC Drilling, said that the latter is in a good position to open the door to growth, and more than 1.1 billion dirhams of revenue from oilfield services has already been delivered, and the business sector plans to grow by at least 20% annually until the year 2025.
In exclusive statements to Al Bayan Al Eqtisadiah, he said that ADNOC Drilling has succeeded in drilling more than 10,000 wells, and plans to drill more wells to enable ADNOC to access the UAE’s oil wells efficiently and effectively. and obtain gas reserves. He explained that the company’s plan and strategy to develop its investor base “has thousands of investors from around the world, as long-term drilling contracts increase the company’s attractiveness, as a reliable investment.”
He continued: “We are looking to the future with a steady growth path, and seek to strengthen our position as the largest drilling company in the Middle East in terms of the number of pieces of the rig fleet, while working to further advanced. We expect to increase the use of equipment and continuously increase revenue over the next five years. ” .
Al-Saiari emphasized in his speech that “the most important thing for us over the next few years, during which the local oilfield services market is expected to grow by about 5%, in addition to our strategic partnership with Baker Hughes, our integrated drilling services offerings, and our experienced workforce, We are in a good position to win a large share of this market, we were able to take a market share of 40% in the first quarter, and we expect the share to grow in 2022. ”
He added that the investment in ADNOC Drilling represents a long-term value generated from a long-term revenue growth strategy, in addition to a long-term strategy for growing our profits as we committed to the initial public offering last year.
It is noteworthy that in the first quarter of 2022, ADNOC Drilling generated revenue of 2.2 billion dirhams, an annual increase of 5% and a growth of 14.9% over the corresponding period of last year, which explains that the company at the end of market expectations. the first quarter, and we achieved a net income of 642 million dirhams, 15% annual increase. He explained that the company has the largest fleet of excavators in the Middle East, where “we have succeeded in increasing the number of parts of our fleet from 96 to 104 excavators.”
Al-Saiari confirmed that since the listing of ADNOC Drilling’s shares on the Abu Dhabi Stock Exchange on October 4, 2021, its share price has shown strong growth, one of the reasons being the company’s record of successive successes over half a century, which led to it becoming a listed company on the stock exchange. This enabled him to achieve profitable profit margins for his shareholders, in line with what he had promised at the time of the initial listing, which he wanted to improve, i.e. profit margins, as the company’s board recommended in the second half of 2021 the distribution of annual profits of $ 325 million to shareholders, which were approved at the meeting. The first annual general meeting was held last April.
He added that the company has so far succeeded in drilling more than 10,000 wells, and plans to drill more wells; To enable ADNOC to access the UAE’s oil and gas reserves efficiently and effectively and to use them to serve the nation. The additional boreholes help ADNOC Drilling to achieve strong and stable returns and profits, in addition to helping ADNOC achieve its ambitious goals of increasing its production capacity.
On the experience of “ADNOC Drilling” during the first year after its listing on the Abu Dhabi Securities Exchange, Al-Saiari indicated that “ADNOC Drilling” is currently listed in 3 global indices, including the emerging “FTSE” index, the “FTSE” ”Global big capital companies, and“ ADNOC Drilling ”FTSE” world record.
It was also recently included in the new index of the Abu Dhabi Securities Exchange “Fadax 15”, which confirms the importance and attractiveness of the company, as a major player in the Abu Dhabi capital market, and a leading drilling company at the level of the countries of the region. We deserve the trust of investors. ” He added: “We have achieved strong growth, and today we are one of the most valuable drilling companies in the world.”
He continued: “During the first year we were able to record a 6% increase in net profit compared to 2020. We were also able to achieve revenue of 2.206 billion dirhams, an annual increase of 5%, and a growth of 14.9% over the corresponding period last year in the first quarter of 2022, thanks to strong operating growth. ”
He added: “The company today, more than ever before, thanks to the largest fleet of equipment in the Middle East, and a strong and ambitious procurement program, has enabled us until March 31, since the listing date of ADNOC Drilling. , to increase the number of parts in our fleet from 96 to 104 rigs.With our diverse workforce of more than 6,500 people and a record of more than 50 years, we are confident that we are ready to do our business in the region to extend.”
He added, “As ADNOC’s exclusive provider of drilling services, long-term contracts offer stable and predictable returns, as well as protection against market volatility and inflation.”
Al-Saiari stressed that ADNOC’s strategic production objectives are reflected in oil and gas projects directly in the drilling activity and tangible financial performance of ADNOC Drilling, and “our profitability targets, with our revenue growing and continuing to develop, remain equally strong with a leading The market after interest, tax, depreciation and amortization (EBITDA) is twice the drilling industry average, and at the same time we continue to leverage our diversified offerings across the entire drilling value chain to increase our integrated drilling services market share, which at the end of the first quarter reached 45%.
He estimated that the UAE would continue to drill thousands of wells to enable ADNOC to achieve its ambitious goals efficiently and reliably, to increase production capacity to 5 million barrels of oil per day, and to achieve gas self-sufficiency for the country. He added, “At ADNOC Drilling, we are a great mediator in achieving this strategy, as we are the only provider of drilling services to ADNOC, which has allowed the demand for our drilling services to continue and so we were able to secure a strong future. returns for our shareholders. ” We are committed to providing very attractive returns to our shareholders with annual earnings growth of 5% for the next five years.
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