Adnoc Drilling reports revenue above $1 billion in 3rd quarter

Adnoc Drilling Company on Wednesday announced record financial results for the third quarter and first nine months of 2024. The company’s third-quarter revenue increased significantly to $1.026 billion, rising by 32 per cent year-on-year.

The company said that the remarkable growth has been fuelled by the expansion of onshore and offshore fleets and the continued growth of the oilfield services (OFS) segment. This momentum has been further bolstered by the initial contributions from the Turnwell and the Enersol joint ventures.

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

For the nine-month period, revenue grew 28 per cent year-on-year to $2.85 billion, driven by increased activity and the expansion of OFS. Adnoc Drilling Company’s Ebitda grew 34 per cent year-on-year to $1.42 billion, and net profit grew 29 per cent year-on-year to $905 million.

At the end of the third quarter, the fleet consisted of 140 owned rigs, including four lease-to-own land rigs.

In 2024, the company has operationalised 21 rigs, including reactivations, with a further two jack-up rigs scheduled to join the fleet in the fourth quarter. The company expects the owned fleet to be 142 by year-end.

Commenting on the record third quarter results for 2024, Abdulrahman Abdulla Al Seiari, Chief Executive Officer, Adnoc Drilling, said: “Adnoc Drilling has once again delivered record-breaking quarterly results, driven by our commitment to strong, sustained strategic growth. This exceptional performance, alongside our pursuit of operational excellence, is reshaping our earnings potential. Key milestones, such as the positive progress of Enersol and the successful launch of Turnwell, demonstrate our 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.”

Adnoc Drilling’s third quarter revenue increased significantly to $1.026 billion, rising by 32 per cent year-on-year. The company’s remarkable growth has been fueled by the expansion of onshore and offshore fleets, as well as the continued growth of the oilfield services (OFS) segment. This momentum has been further bolstered by the initial contributions from the Turnwell and the Enersol joint ventures.

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 per cent year-on-year, yielding a 50 per cent Ebitda margin. Net profit for the quarter grew by 30 per cent year-on-year to $335 million.

For the nine months period, revenue grew 28 per cent year-on-year to $2.85 billion, driven by increased activity and the expansion of OFS. Meanwhile Ebitda grew 34 per cent year- on-year to $1.42 billion and net profit grew 29 per cent year-on-year to $905 million.

At the end of the third quarter, the fleet consisted of 140 owned rigs, including four lease-to-own land rigs. In 2024 the Company has operationalised 21 rigs, including reactivations, with a further two jack-up rigs scheduled to join the fleet in the fourth quarter. The Company expects the owned fleet to be 142 by year end.

In July, Adnoc Drilling was awarded a $733 million contract for 3 new artificial intelligence 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.

In the quarter, Enersol, the technology focused investment joint venture between Adnoc Drilling and Alpha Dhabi signed an agreement to acquire a 51 per cent stake in NTS Amega, subject to regulatory approval. NTS Amega is a leading global provider of advanced manufacturing, complex tool repair and rental solutions for the oil and gas sector. Its range of solutions for technically challenging processes have a track record of improving efficiency and reducing costs.

During the quarter, Enersol also signed an agreement to acquire 100% of EV Holdings, a leading downhole visualization company. EV Holdings is a global provider of vision- based diagnostics and analytical services in the global oil and gas sector, with 116 patents. Its technology supports well operators to make timely and informed decisions that increase operational efficiency, maximise production, and reduce costs. This third acquisition by Enersol, subject to regulatory approvals, will bring the total capital commitments to circa $550 million since inception in January 2024.