ADNOC Drilling expects Dhs 1.3 billion of net profit in 2024
- Last updated: August 8, 2024 | 18:47
Youssef Salem, Chief Financial Officer of ADNOC Drilling, projected the company to achieve net profits between US$1.15 billion and US$1.3 billion by the end of 2024.
In a statement to the Emirates News Agency (WAM), he said that the company achieved net profits of about US$570 million during the first half of 2024, while it is expected to record around US$730 million in the second half of the year, attributing this growth to the significant expansion across all of the company’s operations and the full operational impact of the onshore and offshore rigs that were brought online during the previous period.
He added that ADNOC Drilling has raised its medium-term revenue expectations to US$3.85 billion for the fiscal year 2024, including US$1.75 billion in onshore drilling revenues, US$1.1 billion in offshore drilling revenues, US$250 million in revenues from the artificial islands sector, and US$800 million from the oilfield services sector.
The Chief Financial Officer of ADNOC Drilling estimated that the company’s capital expenditures for 2024 are expected to range between Dhs 750 million and Dhs 950 million, with ongoing rig acquisitions, noting that the company has accelerated its growth plans to support ADNOC in achieving its strategic goal of increasing production capacity from 4 million to 5 million barrels per day by 2027.
He stated that the company’s rig fleet expanded to 140 rigs by the end of the first half of this year, comprising 95 onshore rigs and 45 offshore rigs, up from 137 rigs at the end of the first quarter. He expects the fleet to reach 142 rigs by the end of this year and to grow further to 148 rigs by 2026, in response to increasing customer demand.
He pointed out that ADNOC Drilling completed three acquisitions in the first half of this year, totaling US$550 million, while a new acquisition is expected to be made in the United States during the second half of the year, bringing the total value of the four acquisitions in 2024 to US$750 million.