ADNOC Drilling has reported record financial results for 2024, with net profits rising by 26% year-on-year to US$1.3bn, and revenue growing by 32% to US$4.03bn, reflecting buoyant oil and gas activity both onshore and offshore
This strong growth has been fuelled by the expansion of onshore and offshore fleets, as well as the continued growth of the oilfield services (OFS) segment, reflected in strong revenue growth of 41% year-on-year for the fourth quarter 2024. At the end of Q4 2024, the fleet consisted of 142 owned rigs, 95 onshore and 47 offshore, making it the largest fleet in the Middle East, and this is set to rise to 151 or more by 2028. In 2024 the company operationalised 23 rigs, including two jack-up rigs set to join in H1 2025.
Onshore revenue increased 33% year-on-year to US$554mn, mainly due to new rigs starting operations and growth of the unconventional business. Offshore jack-up revenue increased 17% year-on-year to US$264mn, with the expansion of the offshore operations. Offshore island revenue increased 8% year-on-year to US$56mn, and oilfield services (OFS) revenue increased 111% year-on-year to US$313mn, mainly driven by increased integrated drilling services (IDS), positive phasing related to directional drilling and pressure pumping, and revenue from the unconventional business.
New joint ventures
ADNOC Drilling’s new joint ventures launched in 2024 are also fuelling the company’s growth. SLB, ADNOC Drilling Company and Patterson-UTI joined forces to create Turnwell Industries LLC OPC, the unconventional arm of ADNOC Drilling, which will leverage innovations in AI, smart drilling design, completions engineering and production solutions to accelerate the UAE’s unconventional oil and gas programme. Abu Dhabi holds an estimated 220bn barrels of unconventional oil and 460 TCF of unconventional gas in place. While Enersol Energy Solutions, its joint venture with Alpha Dhabi Holding, was set up as a tech-centric investment platform, to invest in innovative oilfield services companies and thereby accelerate the recovery of UAE conventional and unconventional energy resources.
Abdulrahman Abdulla Al Seiari, ADNOC Drilling CEO, said, “Our outstanding 2024 financial results reinforce ADNOC Drilling’s position as the world’s fastest growing energy services company with net profit more than doubling since listing on ADX.
“As we remain focused on our future growth, we continue to expand our fleet and capabilities at ADNOC Drilling and through our joint ventures, Enersol and Turnwell, to continue powering the future of energy with AI-enabled technology investments, sustainability and innovation.”
In an interview with Bloomberg, Youssef Salem, ADNOC Drilling CFO, highlighted the growth of the unconventional segment, where ADNOC Drilling landed a US$1.7mn contract last year, growing the business by around 25%. “That’s a business that requires a lot of services intensity,” he commented. He also highlighted the positive impact technology has had on the company’s margins and its focus on AI, with smart cameras being rolled out across all its rigs which can predict potential accidents. He said the company is expecting to do at least US$700mn in technology deals this year, primarily related to AI and other energy technology.
Salem also highlighted the positive outlook for the company globally as it seeks to expand its operations in the Middle East as well as Africa and Asia. Commenting on the outlook for global energy demand he said, “We are seeing in the market now a significant increase in activity and creativity, with countries wanting to drill more and get more resources out of the ground. That’s great for us at it increases activity, so the trends whether it’s in the US or different parts of the world, with more drilling and more activity, that effectively increases our volumes and profitability.”
ADNOC Drilling’s positive results follow positive results from other ADNOC divisions including ADNOC Gas and ADNOC L&S.
ADNOC Drilling reports record growth and profits
ADNOC Drilling's strong results have been fuelled by the expansion of both its onshore and offshore fleets. (Image source: Adobe Stock)
