ADNOC Drilling shares fall despite record results in 9 months

ADNOC Drilling shares fall despite record results in 9 months
ADNOC Drilling shares fall despite record results in 9 months

ADNOC Drilling shares fall despite record results in 9 months

UAE ADNOC Drilling Company shares fell during trading today, Monday, November 14 (2022), following the release of its financial results for the nine months ended September 30 and the third quarter of this year.

The company reported strong net profit growth of 24% to AED2.09 billion (US$568 million) in the first 9 months of 2022.

Revenue rose 15% to 7.12 billion dirhams ($1.94 billion) compared to the same period last year.
ADNOC Drilling’s earnings before interest, taxes, depreciation and amortization rose to 3.23 billion dirhams ($879 million) in the first nine months of 2022, up 12% year-on-year and a margin of 45.3% .

ADNOC Drilling’s continued year-over-year revenue growth is driven by its onshore drilling services segment and the Company’s continued efforts to enable ADNOC Group to meet its ambitious goals of increasing its oil and gas production capacity.

Shares of ADNOC Drilling

Back down by 10:30 GMT (0:30 Mecca time). Shares of ADNOC Drilling in Abu Dhabi market 0.88% with 3.38 dirhams.

On October 3, 2022, ADNOC Drilling celebrated the one-year anniversary of its listing on the Abu Dhabi Securities Exchange, which along with the company was known as the largest IPO in the history of the stock exchange, with overperforming coverage of 31x target.

A worker at an ADNOC drilling project

As of September 30, 2022, the company has generated a total shareholder return of 53.7%.

The CEO of ADNOC drillingAbdul Rahman Abdullah Al-Saiari: “As we celebrate the one year anniversary of the Company’s listing on the Abu Dhabi Securities Exchange, we are proud of the value we are delivering to our shareholders thanks to the phased dividend policy that has enabled us to pay dividends in Amount of 2.45 billion dirhams ($666 million) to be distributed to investors since the listing.

He added: “At the same time, we secured a package of contracts worth more than 47.74 billion dirhams ($13 billion) and achieved strong growth in net profits, and we managed to grow our own fleet of dredgers from 95 to 95 108 devices to expand and we look forward to continuing to grow in 2023 and beyond.

Third Quarter Results

In the third quarter, the company’s revenue rose 17% year-on-year to AED2.46 billion (US$671 million), driven primarily by its onshore and offshore drilling services segments.Oilfield Services.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 5% year-on-year in the third quarter to reach AED1.10 billion (US$299 million) over the same period.

Net income for the third quarter increased 6% year-on-year to AED694 million (US$189 million).

For his part, ADNOC Drilling’s CEO said, “The strong results we have achieved over the nine months have been driven by clear strategic goals and priorities that have confirmed the Company’s position as a leader in the drilling business.”

ADNOC Drilling shares fall despite record results in 9 months
Abdulrahman Abdullah Al-Saiari, CEO of ADNOC Drilling

He added, “The excellent results reflect the Company’s success in accelerating the pace of implementation of its ambitious program to expand its drill rig fleet, with the goal of helping to support the efforts of UAE In order to achieve its long-term goals, the production capacities increase oil and gas“.

He pointed out that the company plans to add more excavators in the last quarter of this year; To support its financial and operational performance and create greater value for shareholders in 2023.

He explained that as part of ADNOC Drilling’s commitment to reducing and eliminating emissions from its operations, the company remains focused on achieving sustainability as a fundamental focus of all its operations.

Al-Saiari noted that ADNOC Drilling will continue to work with its partners to support their sustainability goals; The company recently drilled a well The longest fountain in the world 50,000 feet in length in the huge Zakum field in favor of ADNOC Offshore to capitalize on the undeveloped resources within the upper Zakum reservoir with the potential to increase the field’s production capacity by approximately 15,000 barrels of oil per day without the an expansion or construction of new infrastructure is required; This reduces the environmental footprint of its operations.

“Such important technical achievements will solidify ADNOC Drilling’s position as a leader in well drilling and completion,” he said.

drilling services

Al-Saiari saw strong growth in all major business areas; Including onshore drilling services, revenue for the nine months totaled 3.94 billion dirhams ($1.074 billion), up 27% year-on-year after adding new rigs to the fleet.

Revenue for the third quarter of this year was 1.37 billion dirhams ($372 million), up 33% year-on-year.

Offshore drilling services revenue for the nine months was 1.58 billion dirhams ($431 million), which is generally stable compared to a year ago.

Revenue for the third quarter of this year fell to 525.17 million dirhams ($143 million), down 9% due to scheduled maintenance.

The company also won two contracts totaling 12.49 billion dirhams (US$3.4 billion) to deliver 8 self-erecting rigs to ADNOC Marine in the third quarter.

on artificial island services; Revenue for the nine-month period was about 561.89 million dirhams ($153 million), similar to 2021.

Third-quarter revenue of 191 million dirhams ($52 million) fell 14% year-on-year due to a single claim closed and approved in the third quarter of 2021.

In the third quarter of this year, ADNOC Drilling was awarded an order valued at 2.61 billion dirhams (US$711 million) to supply 4 island drilling rigs for a period of ten years for the “Al-Hail” and “Al-Hail” development project . Fields.membrane“.

Drilling Field Services

for oilfield services; Sector revenue rose to 1.04 billion dirhams ($282 million) thanks to good performance during the nine-month period, up 22% year-on-year, driven by high activity due to continued expansion with a good scope for development.

ADNOC drilling
An ADNOC oil rig in an oil field in the United Arab Emirates

Revenue for the third quarter of this year was 378 million dirhams ($103 million), up 40% year-on-year.

In the third quarter, the company signed a ten-year oilfield services contract valued at 4.77 billion dirhams ($1.3 billion).ADNOCProviding integrated drilling services to provide drilling fluids and their services for the “Al-Hail” and “Ghasha” field development project.

The Company was also awarded a 5-year oilfield services contract valued at 84 million dirhams (US$23 million) from ADNOC Onshore to supply production chemicals and a 4-year maintenance contract valued at 7 million from Al Dhafra Petroleum Company Dirham (US$2 million). .

It is notable that the Company accelerated its fleet expansion program in 2022, signing two sale and purchase agreements in the third quarter to acquire three more drill rigs with high quality specifications valued at 771 million dirhams ($210 million).

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