ADNOC Drilling reports $570 million net profit in H1-24

ADNOC Drilling Company today announced record financial results for the second quarter and first half of 2024. The company’s net profit for the quarter also grew, up 29% year-on-year and 7% sequentially to $295 million, driven by the increase in EBITDA, while for the first half the figure stood at $570 million, up 28% year-on-year.

The revenue increased to $935 million and more than $1.8 billion, up year-on-year by 29% and 26%, respectively.

The strong top-line translated into record EBITDA both in the quarter and the first half. Second quarter EBITDA increased by 37% year-on-year and 8% sequentially to $472 million, yielding a 50% EBITDA margin.

First-half EBITDA was $909 million, up 34% year-on-year and with a margin increase to 50%, driven by strong revenue growth, coupled with the company’s continued and effective cost management initiatives.

Commenting on the results, Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, said, “ADNOC Drilling has continued to deliver on its strategic initiatives and has successfully closed the first half of the year on a strong note, achieving multiple milestones.

“The Company’s performance for the period is a continued reflection of our unwavering commitment to operational excellence and efficiency in every aspect of our business. Our achievements for the period are a testament to the relentless dedication of our people, whose efforts are central to delivering outstanding service to our customers and maximising value for our shareholders.”

At the end of the second quarter, the fleet consisted of 140 rigs (136 owned plus four lease-to-own land rigs), up from 137 at the end of the first quarter.

The Board of Directors has approved an interim dividend of $394 million, +10% year-on-year, under a new enhanced and progressive dividend policy, equivalent to 9.0468 fils per share.

The interim dividend distribution is expected to be in the last week of August 2024 to all shareholders of record as of 12th August 2024.