ADNOC Drilling's Net Profit Soars To $570 Million In First Half Of 2024

ADNOC Drilling Company has reported record financial results for the second quarter and first half of 2024. The company's net profit for the quarter rose by 29% year-on-year and 7% sequentially, reaching $295 million. This growth was driven by an increase in EBITDA. For the first half of the year, net profit stood at $570 million, marking a 28% year-on-year increase.

The revenue for the second quarter increased to $935 million, reflecting a 29% year-on-year rise. For the first half of 2024, revenue surpassed $1.8 billion, up by 26% compared to the previous year. This strong revenue performance led to record EBITDA figures for both periods.

In the second quarter, EBITDA grew by 37% year-on-year and 8% sequentially to reach $472 million, resulting in a 50% EBITDA margin. For the first half of the year, EBITDA was $909 million, up by 34% year-on-year with a margin increase to 50%. This growth was attributed to robust revenue gains and effective cost management strategies.

Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, commented on these results: "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."

Al Seiari further stated, "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."

By the end of Q2, ADNOC Drilling's fleet comprised 140 rigs (136 owned plus four lease-to-own land rigs), up from 137 rigs at the end of Q1. This expansion reflects ongoing investments in operational capacity.

Dividend Policy Update

The Board of Directors has approved an interim dividend of $394 million under a new enhanced and progressive dividend policy. This represents a 10% increase year-on-year and equates to 9.0468 fils per share. The interim dividend distribution is expected in late August 2024 for shareholders recorded as of August 12th, 2024.

The company's financial performance highlights its strategic focus on growth and efficiency. These results underscore ADNOC Drilling's ability to generate substantial shareholder value through disciplined execution and operational excellence.

With inputs from WAM