UAE’s ADNOC Drilling projected to achieve net profits between $1.15 billion and $1.3 billion by the end of 2024, according to the company’s chief financial officer.
Youssef Salem, CFO of ADNOC Drilling, reported that the company achieved net profits of approximately $570 million during the first half of 2024. He further stated that the company is expected to record around $730 million in the second half of the year, attributing this growth to the significant expansion across all of the company’s operations and the full operational impact of the onshore and offshore rigs that were brought online during the previous period.
Additionally, Salem revealed that ADNOC Drilling has raised its medium-term revenue expectations to $3.85 billion for the fiscal year 2024. This includes $1.75 billion in onshore drilling revenues, $1.1 billion in offshore drilling revenues, $250 million in revenues from the artificial islands sector, and $800 million from the oilfield services sector.
Capital expenditures, fleet expansion
The Chief Financial Officer also estimated that ADNOC Drilling’s capital expenditures for 2024 are expected to range between $750 million and $950 million, primarily due to ongoing rig acquisitions. He noted that the company has accelerated its growth plans to support ADNOC in achieving its strategic goal of increasing production capacity from 4 million to 5 million barrels per day by 2027.
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Moreover, Salem stated that the company’s rig fleet expanded to 140 rigs by the end of the first half of this year, comprising 95 onshore rigs and 45 offshore rigs, up from 137 rigs at the end of the first quarter. He expects the fleet to reach 142 rigs by the end of this year and to grow further to 148 rigs by 2026, in response to increasing customer demand.
Acquisition plans
Salem further revealed that ADNOC Drilling completed three acquisitions in the first half of this year, totaling $550 million, and a new acquisition is expected to be made in the United States during the second half of the year, bringing the total value of the four acquisitions in 2024 to $750 million.
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