Adnoc Drilling Company today announced its financial results for the fourth quarter and full year ending 31st December 2022. It reported $802 million net profit for the twelve-month, up 33 per cent year-on-year.

Full year earnings before Ebitda (Earnings before interest, taxes, depreciation and amortisation) was $1.23 billion, with a margin of over 46 per cent, as Adnoc Drilling made excellent progress on the delivery of further cost efficiencies.

Adnoc Drilling’s revenue for the year increased to $2.67 billion, up a robust 18 per cent compared to 2021.

Year-on-year revenue growth was led by the Onshore and Oilfield Services (OFS) segments, while all segments achieved positive year-on-year performance as the Company enables Adnoc’s accelerated production capacity target of five million barrels per day by 2027.

The Company achieved record revenue, Ebitda and net profit during the fourth quarter (4Q) of 2022, while its bold fleet expansion programme delivered the highest-ever number of operational rigs - bolstering growth and charting a clear course for further expansion in 2023 and beyond.

The Company’s accelerated rig acquisition programme added 16 new drilling units in 2022, establishing one of the world’s largest drilling and well completion fleets consisting of 115 rigs.

During the fourth quarter of 2022, Adnoc Drilling delivered its highest-ever quarterly revenue of $733 million, up 27 per cent year-on-year, earnings before interest, taxes, depreciation and amortisation of $353 million, up 35 per cent, and net profit of $234 million, up 61 per cent.

This significant growth was driven primarily by new rigs entering the operational fleet.

Adnoc Drilling reported onshore $1.45 billion in revenues for the full year, up 27 per cent over 2021, principally driven by new fleet additions. Year-on-year, fourth quarter of 22 revenue was up 29 per cent to $379 million, largely driven by the resultant increase in drilling activity.

For the offshore jack-up, revenue for the full year was $611 million, a three per cent increase compared to 2021.

The growth of the segment started accelerating towards the end of the year, with fourth quarter of 22 revenue of $180 million and earnings before interest, taxes, depreciation and amortisation of $108 million, an increase of 23 per cent and 30 per cent, respectively, reflecting new jack-up rigs joining the operational fleet.

The Offshore Island revenue for the full year versus 2021 was flat at $204 million. Fourth quarter of 2022 revenue was $51 million, up 34 per cent compared to fourth quarter of 2021.

Earnings before interest, taxes, depreciation and amortisation decreased marginally, down five per cent year-on-year due to one-off revenue claims in 2021 for standby Island Rigs.

The Oilfield Services (OFS) revenue was $405 million for the full year, an increase of 23 per cent compared to 2021. Record quarterly revenue of $123 million was achieved in 4Q22 due to additional offshore unconventional activity during the quarter.

Adnoc Drilling reported a fleet utilisation rate of 96 per cent for the year ending 31st December 2022, delivering exceptional revenue efficiency. Cash from operations increased 29 per cent year-on-year to $1.52 billion, supporting a free cash flow of US$588 million.

Full-year 2022 capital expenditure increased by 62 per cent to $942 million as the Company delivered on its ambitious plans to expand its fleet to meet customer demand.

Adnoc Drilling initiated its first-ever year-ahead guidance. The Company expects total revenue between $3.0 to $3.2 billion, which represents year-on-year growth of up to 20 per cent, and ebitda in a range between $1.35 to $1.5 billion, with a very healthy margin of 45 per cent to 47 per cent.

The company anticipates a new record net profit of $850 million to $1 billion, again continuing the growth from US$600 million in 2021 to $800 million in 2022 and now to this new level in 2023.

Capital expenditure is forecast to be in a range of $1.3 to $1.75 billion this year, while planning to maintain the leverage ratio target below 2.0x.

The final dividend for 2022 is expected to increase by a minimum of 5 per cent, in line with the highly competitive and progressive 5-for-5 dividend policy demonstrating a commitment to sustained value creation for shareholders.

Abdulrahman Abdulla Al Seiari, Chief Executive Officer of Adnoc Drilling, said, “I am proud of the outstanding results that Adnoc Drilling has delivered over the past 12 months.

These record results were enabled by our clear strategic objectives, the hard work of our highly-skilled and dedicated workforce, and our commitment to industry-leading health and safety standards.