Adnoc Drilling's revenues rise 30% to $2.37 billion in first half

ABU DHABI: Adnoc Drilling Company announced its financial results for the second quarter and first half of 2025, delivering record-breaking performance across revenue, EBITDA and net profit while maintaining strong momentum in shareholder returns and delivering regional expansion.

The company posted a net profit of $692 million for the first half, up 21 per cent year-on-year, driven by fleet expansion, rig utilisation and Oilfield Services (OFS) growth.

Revenue rose 30 per cent to $2.37 billion, while EBITDA increased 19 per cent to $1.08 billion.

Abdulla Ateya Al Messabi, Adnoc Drilling CEO, said, "Our record first half 2025 results once again demonstrate the strength, resilience, and scalability of Adnoc Drilling. We continue to deliver outstanding financial performance, dependable shareholder returns and disciplined regional expansion, all underpinned by our commitment to deploying AI and advanced technologies.

With this momentum, we are firmly on track to achieving our full-year growth targets.

Adnoc Drilling has consistently demonstrated its ability to grow in any phase of the energy cycle. With high and visible cash flows, growing earnings and strong visibility of future returns, we remain confident in our ability to continue delivering long-term value to our shareholders.”

The company's Board of Directors approved the $217 million (approx. 5 fils per share) second quarterly dividend for 2025, which reaffirms the commitment to delivering reliable, growing income to shareholders.

The dividends are expected to be paid in the second half of August 2025 to all shareholders of record as of 8th August 2025.

With two quarterly dividends announced year-to-date, and a third one to be announced later in 2025, Adnoc Drilling offers a blend of attractive income and growth. This profile offers shareholders highly visible and growing returns, in line with its progressive dividend policy.

In segmental performance during H1, the onshore revenue grew by 18 per cent year-on-year to $1.0 billion, supported by the launch of new rigs and a $79 million contribution from the unconventional business.

Offshore revenues (Jack-up and Islands) rose 1 per cent year-on-year to $671 million, primarily due to the reactivation of island rigs. The contribution from two new jack-up rigs, previously announced, is expected to begin in the third quarter.

OFS revenues increased by 127 per cent year-on-year to $689 million, driven by $265 million in revenue from unconventional business, coupled with increased integrated drilling services (IDS) activity and additional discrete services.

Adnoc Drilling highlighted progress in regional expansion with the signing of an agreement to acquire a 70 per cent stake in SLB’s land drilling business in Kuwait and Oman. The deal, subject to regulatory approval, will give Adnoc Drilling immediate access to earnings, cashflow and returns accretive growth through two operating land drilling rigs in Kuwait and six in Oman, accelerating its expansion into key GCC geographies.

Enersol, Adnoc Drilling’s energy technology investment platform, continued its strategic momentum in 2Q of 2025 by advancing local operations and deepening its technology footprint across the UAE.

Key developments included progress on its Abu Dhabi hub and the launch of the Enersol Energy Challenge, a first-of-its-kind initiative aimed at identifying UAE-based entrepreneurs developing transformative energy technologies.

Enersol has an advanced pipeline of additional transactions on top of the four acquisitions already completed.

Turnwell, Adnoc Drilling’s unconventional drilling specialist, reached new operational milestones in 2Q of 2025 as it expanded its presence across the UAE’s onshore unconventional basins. Turnwell successfully delivered additional high-efficiency wells and implemented new drilling techniques, including autonomous drilling, which reduced cycle times and improved safety metrics.

Turnwell has now drilled 58 of the planned 144 wells - over 40 per cent - and has fractured more than 20 wells.

In 2025, Adnoc Drilling added approximately $4.8 billion in new contracts, the strongest ever period for adding backlog.

These accretive wins span integrated drilling, oilfield and rig services delivering long-term earnings visibility through 2040 and beyond.

The company is now the most covered stock in the Mena region, with 20 global equity research analysts providing sell side coverage.

The company reaffirmed its medium-term guidance, with full-year 2026 revenue expected at around $5 billion. It targets a conventional EBITDA margin of approximately 50 per cent, OFS margins in the 22-26 per cent range, a conservative long-term leverage cap of 2.0x net debt to EBITDA, and net working capital of about 12 per cent of revenue. It also expects to operate over 151 rigs by 2028.

WAM