Adnoc Drilling Company on Tuesday announced its financial results for the half year and second quarter ending June 30, 2022.  The company’s net profit for the first half (H1) significantly grew by 34 per cent to $379 million, while revenue increased 13 per cent to $1.27 billion compared to the same period last year.

First half Ebitda was $580 million, up 16 per cent year-on-year, with a market-leading margin of 45.7 per cent, as the company made exceptional progress on delivering further cost savings. Year-on-year revenue growth was led by the Onshore segment, as Adnoc Drilling continues to enable Adnoc’s programme to significantly grow production capacity.

The company’s Oilfield Services (OFS) segment also achieved strong year-on-year gains. Second quarter revenue grew 11 per cent year-on-year to $669 million, driven primarily by the Onshore and OFS segments.

Ebitda for second quarter of 2022 increased by 7 per cent from the previous quarter as it climbed to $300 million for the period. Q2 22 net profit grew 17 per cent from the previous quarter and by 19 per cent year-on-year, to $204 million.

Onshore revenue for H1 was $702 million, up 24 per cent on H1 of 2021, largely driven by new rigs joining the fleet. The second quarter revenue was $383 million, up 33 per cent on Q2 21. Overall operating rig days and underlying revenue in Q2 of 2022 were higher than in the prior corresponding period.

Offshore Jackup revenue for the first half was $288 million, broadly flat vs. the prior year. Q2, 2022 revenue was $144 million, down 8 per cent vs Q2 of 2021 due to the activity mix and delays in the replacement of rented rigs with owned units. Also, Offshore Island’s revenue for the first half was $101 million, similar to H1, 2021. Q2, 2022 revenue of $51 million was down 26 per cent year-on-year due to accounting movements in the prior period.

The OFS segment performed well in H1 with revenue of $179 million, up 14 per cent on H1, 2021, driven by higher activity from continued expansion, with healthy margin development. Q2 22 revenue was $91 million, up 5 per cent year-on-year.

Adnoc Drilling reported a fleet utilisation rate of 98 per cent for the half year to June 30, 2022.

The company’s bold rig fleet expansion programme gained further momentum in H1 of 2022, with eight rigs added to the fleet. Five Helmerick & Payne FlexRigs were added in Q1 22, and sale and purchase agreements were signed for three premium offshore jack-ups in Q2, 2022. The total value of these acquisitions forms part of the company’s three-year capital expenditure guidance of $2.5-3 billion, as well as its strategic roadmap to grow the fleet to 122 rigs by the end of 2024.

In line with Adnoc Drilling’s sustainable and progressive dividend policy, the Board of Directors announced an increase in the interim, half-year dividend of 5 per cent to $341 million, 7.83 fils per ordinary share, in respect of the 2022 financial year, payable in the fourth quarter.

The growth in dividend reflects Adnoc Drilling’s strong and visible future cash flow, while providing ample headroom to invest in long-term future growth.

WAM