UAE’s ADNOC Drilling reports net profit of $460m for first nine months of 2021

UAE’s ADNOC Drilling Company said that its revenue increased 12 per cent in the first nine months of 2021 to $1.7bn compared to the same period last year.

It reported EBITDA of $785m with a margin of 46 per cent, and net profit of $460m for the period, up 9 percent year-on-year.

For the third quarter, ADNOC Drilling reported revenues of $571m, up 11 per cent year-on-year, and EBITDA of $285m, representing a 50 per cent margin in the quarter.

The onshore revenue for the nine-month period was $847m, up 10 per cent compared to the same period last year, driven by new rigs and the reactivation of rigs in 2021. Third quarter 2021 revenue was $279m, up 9 per cent year-on-year.

Offshore jackup revenue increased during the nine-month period to $450m (nine-Month 2020: $443m), supported by an increase in operating activity of its jack-up rigs. Third quarter 2021 revenue was $157m, down 2 per cent year-on-year.

ADNOC Drilling has announced strong third-quarter and nine-month 2021 results, beating the market forecast. pic.twitter.com/Nl4oxj98bz

— ADNOC Group (@AdnocGroup) November 10, 2021

Offshore Island revenue was up 11 per cent to $166m for the first nine months of 2021 compared to the same period last year. Third quarter 2021 revenue was $61m, up 45 per cent year-on-year.

Oilfield Services (OFS) revenue for the nine-month period increased 50 per cent year-on-year to $231m. Third quarter 2021 revenue was $74m, up 32 per cent year-on-year.

ADNOC Drilling’s EBITDA for the nine-month period was $785m, up 11 per cent year-on-year.

ADNOC Drilling’s fleet utilization rate stands at 95.5 per cent as of September 30, 2021. Its cash from operations increased 15 per cent year-on-year to $823m, equating to 105 percent of EBITDA.

Capital expenditure for the nine-month period increased four-fold on a year-on-year basis, to $454m in 2021. These investments will support the ambitious growth of the Company’s OFS expansion operations and rig acquisitions, with these new rigs expected to commence operations in 2022.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC managing director and group CEO, and chairman of ADNOC Drilling, said, “With double-digit revenue growth, ADNOC Drilling has demonstrated exceptional financial performance and commercial resilience, reflected in a very robust third-quarter. These impressive results follow ADNOC Drilling’s record ADX listing in early October, and were well above market forecasts.”

On October 3, ADNOC listed ADNOC Drilling Company on the Abu Dhabi Securities Exchange (ADX). The initial public offering has raised over $1.1bn, making it the largest-ever ADX listing to date. It listed 11 per cent of its shares for trading on the bourse.

Read: ADNOC Drilling lists IPO on Abu Dhabi Securities Exchange