ADNOC Drilling posts 26% rise in Q1 profits

ADNOC Drilling has reported a 26 per cent year-on-year growth in first-quarter profits to $275 million.

It also announced record first-quarter revenue, up 24 per cent, year-on-year, to $886 million.

The Offshore Jack-up and Oilfield Services (OFS) segments drove revenue growth, increasing 51 per cent and 16 per cent respectively year-on-year. 

The Board of Directors has recommended a new, progressive dividend policy with dividends expected to grow by at least 10  per annum on a dividend per share basis over the next five years (2024-2028).

ADNOC Drilling has been awarded a transformational $1.7 billion contract, by ADNOC, to provide drilling and associated services for recovering unconventional energy resources.

The contract will see the company deliver 144 unconventional oil and gas wells and will leverage the technology pipeline of its strategic joint venture Enersol and ADNOC’s world-leading AI, digitisation, and advanced technologies to contribute to responsible energy delivery.

Commenting on the results, Abdulrahman Abdulla Al Seiari, Chief Executive Officer of ADNOC Drilling, said, “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 $1.7 billion 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 a prime position to deliver them. Aligned to this is the investment in and adoption of AI and advanced technologies through our strategic joint venture, Enersol, that has a $1.5 billion mandate to invest in and acquire global energy technologies.”