Adnoc Drilling Company reported a significant increase in revenue in the first quarter of 2024, reaching $886 million, a 24% increase compared to the previous year. The growth was primarily driven by the offshore jack-up and oilfield services segments, with Ebitda also increasing by 31% year-on-year to $437 million. Net profit for the quarter rose to $275 million, up 26% year-on-year.
Abdulrahman Abdulla Al Seiari, the CEO of Adnoc Drilling, expressed confidence in the company’s growth trajectory and cash flow generation ability. He highlighted the company’s strategy of enabling Adnoc’s production capacity growth to meet the increasing demand for energy worldwide. The recent $1.7 billion contract award represents a transformative opportunity for the company to deliver thousands of wells to tap into the UAE’s unconventional energy resources.
The board of directors has recommended a new progressive dividend policy that aims to increase dividends by at least 10% annually over the next five years. The policy also allows for additional dividends at the board’s discretion, considering growth opportunities while maintaining net debt/Ebitda up to 2x, excluding transformative M&A activities. The policy is subject to shareholder approval at an upcoming general meeting.
Adnoc Drilling’s fleet at the end of the first quarter comprised 137 rigs, with 13 hybrid-powered land rigs that utilize battery storage to improve power delivery and reduce emissions by up to 15% per rig. The company expects to add three more hybrid land rigs to the fleet this year, totaling 16 rigs, all of which were ordered in 2023. The investment in hybrid land rigs reflects the company’s commitment to adopting advanced technologies to enhance operational efficiency.
In conclusion, Adnoc Drilling’s strong performance in the first quarter of 2024 indicates the company’s continued growth and profitability. The focus on technology adoption, strategic investments, and operational excellence positions the company for future success in meeting the world’s energy demand. The new progressive dividend policy is expected to boost shareholder returns and reinforce confidence in the company’s financial stability and growth prospects. As Adnoc Drilling continues to expand its fleet and embrace technological advancements, it remains well-positioned in the competitive oil and gas industry.
