ADNOC Drilling Posts Record Revenues in Third Quarter

Fuelled by the expansion of onshore and offshore fleets, as well as the continued growth of the oilfield services (OFS) segment, ADNOC Drilling, a fully-owned subsidiary of the Abu Dhabi National Oil Company (ADNOC), on Wednesday said that its quarterly revenues stood at $1.026 billion, rising 32% y-o-y.

For the first nine months of 2024, ADNOC Drilling’s revenue grew 28% y-o-y to $2.85 billion, while EBITDA grew 34% y-o-y to $1.42 billion and net profit grew 29% year-on-year to $905 million, the company said in a regulatory filing this morning.

The strong top-line performance coupled with the company’s continued and effective cost management initiatives translated into record EBITDA of $510 million in the third quarter, up 34% y-o-y, yielding a 50% EBITDA margin. The net profit for the quarter grew by 30% year-on-year to $335 million.

At the end of the third quarter, the fleet consisted of 140 owned rigs, including four lease-to-own land rigs. The Company has operationalised 21 rigs, including reactivations so far this year, with a further two jack-up rigs scheduled to join the fleet in the fourth quarter.

Commenting on the third Q3-2024 results, ADNOC Drilling CEO Abdulrahman Abdulla Al Seiari said that the company has once again delivered record-breaking quarterly results, driven by their commitment to strong, sustained strategic growth.

He said that this exceptional performance, alongside our pursuit of operational excellence, is reshaping the company’s earnings potential. Key milestones, such as the positive progress of Enersol and the successful launch of Turnwell, demonstrated ADNOC Drilling’s ability to execute on multiple fronts.

“Our results reflect a committed focus on efficiency and expansion, thanks to the dedication of our team whose efforts ensure we consistently provide exceptional service to our customers. We remain well on-track to deliver continued accelerated growth and maximise shareholder returns,” he added.

Cross Segment Growth

The onshore revenue in the third quarter increased 29% y-o-y to $487 million, mainly due to new rigs commencing operations. Even the offshore Jack-up revenue for the quarter also grew 46% y-o-y to $290 million, due to higher activity from jack-ups compared with last year, as the offshore operations expanded.

The offshore island revenue stood at $52 million during the quarter, with EBITDA at $32 million and net profit at $22 million. The revenues from Oilfield Services increased 36% y-o-y to $197 million, mainly driven by increased activity in directional drilling and drilling fluids.

The overall volume of activity of the segment is expected to increase in the fourth quarter of this year, in-line with planned phasing and driven by a ramp-up in IDS rigs and the unconventional business, the company added.

Contracts Awarded

In July, ADNOC Drilling was awarded a $733 million contract for 3 new artificial intelligence (AI) enabled island rigs, in support of growing operations at the offshore Zakum field.

The award follows existing agreements with revenue underpinned by long-term contract durations and guaranteed returns. The delivery of rigs and the commencement of operations is expected during 2026.