ADNOC Drilling announces record Q1 results

ADNOC Drilling has announced record first quarter revenues of US$886mn, up 24% year-on-year, driven by the offshore jack-up and oilfield services segments

Net profit for the quarter reached US$275mn, up 26% year-on-year.

Revenues from the Offshore Jack-up segment increased by 51% to US$278mn, mainly due to higher activity from the additional jack-up rigs, while the oilfield services segment (OFS) grew 16% year-on-year to US$146mn, driven by increased activity in drilling fluids and directional drilling. The overall volume of activity of the segment is expected to increase throughout the year, in line with planned phasing and driven by IDS rigs ramp-up and unconventionals. Onshore revenue was US$411mn, up 16% year-on-year, mainly due to increased onshore activity, driven by the contribution from new rigs commencing operations.

Major contract

Highlights of the quarter include the award of a US$1.7bn contract to provide drilling and associated services for the recovery of unconventional energy resources, whereby ADNOC Drilling will drill 144 unconventional oil and gas wells. ADNOC Drilling will leverage the technology pipeline of its strategic joint venture Enersol and ADNOC’s AI, digitisation, and advanced technologies capabilities

At the end of the first quarter 2024, ADNOC Drilling’s fleet comprised 137 rigs, an increase of 22 rigs year-on-year. Thirteen of these are hybrid powered land rigs that utilise battery storage to improve power delivery and reduce emissions by up to 15% per rig. An additional three hybrid land rigs are expected to enter the fleet this year.

Abdulrahman Abdulla Al Seiari, chief executive officer, ADNOC Drilling, said, “Our strong first quarter performance demonstrates that we have entered a new era for the company as we go from strength-to-strength. Our multi-faceted strategy of enabling ADNOC’s conventional and unconventional production capacity growth to meet the world’s growing demand for energy will further transform the business in 2024-onwards. The US$1.7bn contract award represents a transformational opportunity as the UAE’s world class unconventional energy resources will require many thousands of wells and we are in prime position to deliver them. Aligned to this is the investment in, and adoption of, artificial intelligence and advanced technologies through our strategic joint venture, Enersol, that has a US$1.5bn mandate to invest in and acquire global energy technologies.”