ADNOC Drilling, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), reported a net profit of $347 million for the first quarter of 2024, marking a significant increase driven by robust growth in offshore and oilfield services segments. The company's revenue surged 28% year-on-year to $792 million, underpinned by higher activity levels and expanded service offerings.
Offshore Expansion Key Driver
The offshore drilling segment was a primary contributor, with revenue climbing 35% to $312 million. ADNOC Drilling added two new offshore rigs during the quarter, bringing its total fleet to 106 rigs. The company also secured long-term contracts for offshore services, ensuring sustained revenue visibility.
Oilfield Services Growth
Oilfield services revenue rose 22% to $284 million, supported by increased demand for integrated drilling solutions and well intervention services. The segment's performance was bolstered by new contracts in unconventional resources and enhanced oil recovery projects.
ADNOC Drilling's onshore drilling revenue grew 18% to $196 million, driven by higher rig utilization and operational efficiencies. The company maintained a fleet utilization rate of 97% during the quarter, reflecting strong demand across its operations.
Financial Highlights and Outlook
Adjusted EBITDA increased 24% to $481 million, with margins remaining healthy at 60.7%. The company's capital expenditure stood at $215 million, primarily directed towards rig upgrades and new technology deployments.
Looking ahead, ADNOC Drilling expects continued growth, supported by ADNOC's ambitious plans to expand oil production capacity to 5 million barrels per day by 2027. The company is also exploring opportunities in geothermal energy and carbon capture, aligning with the UAE's net-zero emissions target by 2050.
CEO Abdulrahman Al Seiari commented, 'Our strong Q1 performance reflects the successful execution of our growth strategy and the unwavering demand for our services. We remain focused on delivering value to our shareholders while supporting ADNOC's strategic objectives.'
ADNOC Drilling's shares traded 2.3% higher on the Abu Dhabi Securities Exchange following the earnings announcement, reflecting investor confidence in the company's trajectory.
