ADNOC Drilling Anticipates Up To AED 1.3 Billion Net Profit By 2024 Amid Expansion

ADNOC Drilling's Chief Financial Officer, Youssef Salem, anticipates the company will achieve net profits between US$1.15 billion and US$1.3 billion by the close of 2024. In a statement to the Emirates News Agency (WAM), he highlighted that ADNOC Drilling recorded net profits of approximately US$570 million in the first half of 2024. The company is expected to generate around US$730 million in the second half, driven by substantial growth across all operations and the full operational impact of newly online onshore and offshore rigs.

Salem revealed that ADNOC Drilling has revised its medium-term revenue projections upwards to US$3.85 billion for the fiscal year 2024. This includes US$1.75 billion from onshore drilling, US$1.1 billion from offshore drilling, US$250 million from artificial islands, and US$800 million from oilfield services. These figures reflect the company's robust performance and strategic expansion efforts.

The Chief Financial Officer also estimated that capital expenditures for 2024 are projected to be between AED 750 million and AED 950 million. This investment will support ongoing rig acquisitions as part of ADNOC's strategy to increase production capacity from 4 million to 5 million barrels per day by 2027.

Salem noted that ADNOC Drilling's rig fleet grew to 140 rigs by mid-2024, comprising 95 onshore rigs and 45 offshore rigs, up from 137 rigs at the end of the first quarter. He expects the fleet to expand further to 142 rigs by year-end and reach 148 rigs by 2026 in response to rising customer demand.

He also mentioned that ADNOC Drilling completed three acquisitions in the first half of this year, totaling US$550 million. A new acquisition is anticipated in the United States during the second half of the year, which will bring the total value of acquisitions in 2024 to US$750 million.

"The company’s rig fleet expanded to 140 rigs by the end of the first half of this year," Salem stated, "comprising 95 onshore rigs and 45 offshore rigs." He added that they plan for further growth with an expected fleet size of 148 rigs by 2026.

In summary, ADNOC Drilling is on track for significant financial growth and operational expansion throughout 2024. The company's strategic investments and acquisitions are set to enhance its capabilities and support ADNOC's broader production goals.

With inputs from WAM