Adnoc Drilling Company announced on Monday that second quarter and first half 2024 revenue increased to $935 million and more than $1.8 billion, up year-on-year by 29 per cent and 26 per cent respectively.
The strong top-line translated into record Ebitda both in the quarter and the first half. Second quarter Ebitda increased by 37 per cent year-on-year and 8 per cent sequentially to $472 million, yielding a 50 per cent Ebitda margin. First half Ebitda was $909 million, up 34 per cent year-on-year and with a margin increase to 50 per cent, driven by strong revenue growth, coupled with the Company’s continued and effective cost management initiatives.
Net profit for the quarter also grew, up 29 per cent year-on-year and 7 per cent sequentially to $295 million, driven by the increase in Ebitda, while for the first half the figure stood at $570 million, up 28 per cent year-on-year.
At the end of the second quarter, the fleet consisted of 140 rigs (136 owned plus four lease-to-own land rigs), up from 137 at the end of the first quarter due to the addition of three land rigs.
The board of directors has approved an interim dividend of $394 million, a rise of 10 per cent year on year under new enhanced and progressive dividend policy, equivalent to 9.0468 fils per share.
The interim dividend distribution is expected to be in the last week of August, to all shareholders of record as of August 12, 2024.
Onshore: revenue in the second quarter increased 27 per cent year-on-year to $441 million from $346 million, mainly due to new rigs put into operations. Offshore jack-up revenue for the quarter increased 48 per cent year-on-year to $284 million from $192 million, due to higher activity from jack-ups gradually contributing to revenue in the last few quarters. Offshore island revenue increased 2 per cent year-on-year to $53 million from $52 million, mainly driven by a rig reactivation during the second quarter.
Oilfield services revenue increased 17 per cent year-on-year in the second quarter to $157 million from $134 million, mainly driven by increased activity in drilling fluids and wireline services. The overall volume of activity of the segment is expected to increase throughout the year, in-line with planned phasing and driven by IDS rigs ramp-up and unconventionals.
Adnoc Drilling upgraded its medium-term guidance, with the compound annual growth rate (CAGR) in revenue expected in the 14 per cent – 18 per cent from 2023 base (previous range: 12 per cent – 16 per cent).
Abdulrahman Abdulla Al Seiari, chief executive officer, Adnoc Drilling, said: “Adnoc Drilling has continued to deliver on its strategic initiatives and has successfully closed the first half of the year on a strong note, achieving multiple milestones. “The Company’s performance for the period is a continued reflection of our unwavering commitment to operational excellence and efficiency in every aspect of our business. Our achievements for the period are a testament to the relentless dedication of our people, whose efforts are central to delivering outstanding service to our customers and maximising value for our shareholders.”