ADNOC Drilling reports revenues of over $3 billion in 2023

Company outlines ambitious growth plans for 2024 and beyond
ADNOC Drilling reports revenues of over $3 billion in 2023
The net profit for the full year surged by 29 percent year-on-year to $1.033 billion

ADNOC Drilling Company PJSC‘s revenue for 2023 soared to $3.057 billion, marking a significant 14 percent year-on-year increase.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also witnessed a substantial uptick, climbing by 20 percent to reach $1.483 billion, boasting an industry-leading EBITDA margin of 49 percent.

Notably, the net profit for the full year surged by 29 percent year-on-year to $1.033 billion, with a margin of 34 percent. This reflects the company’s robust bottom-line performance and efficient operational management.

During the fourth quarter of 2023, ADNOC Drilling achieved record quarterly revenue of $841 million, up 15 percent year-on-year. Moreover, it recorded an EBITDA of $424 million, a 20 percent increase. It also delivered a net profit of $329 million, up 41 percent.

Strategic initiatives

Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, commented, “Over the past 12 months we have further demonstrated the strength of our unique business model.” The company’s model has delivered outstanding business growth and results. Moreover, it benefits from its five million barrels per day capacity target.

ADNOC Drilling’s ambitious fleet expansion strategy and the accelerated growth of Oilfield Services have delivered exceptional bottom-line performance. Looking ahead, Al Seiari highlighted the company’s dedication to driving further efficiencies in operational and financial performance while delivering enhanced value to customers and shareholders.

Oilfield services

ADNOC Drilling’s revenue growth was driven primarily by the Offshore Jack-up and Oilfield Services (OFS) segments. The segments witnessed increases of 31 percent and 37 percent, respectively, compared to 2022. Moreover, the company’s Onshore, Offshore Island, and Oilfield Services segments all demonstrated growth, underpinned by strategic investments and expanded operational capabilities.

Additionally, the company added 14 new drilling units in 2023. This includes four lease-to-own land rigs and one of the world’s largest owned and operated fleets consisting of 129 rigs.

Read: Dragon Oil to drill first well in Turkmenistan’s Block 19 in December

Outlook and growth projections

Buoyed by its strong performance, ADNOC Drilling announced its full-year and medium-term guidance for 2024. The company anticipates total revenue between $3.60 and $3.80 billion for 2024. Moreover, it expects an EBITDA of $1.70 to $1.90 billion, with a margin range of 48 percent to 50 percent. As for net profits, the company expects a range between $1.05 and $1.25 billion, with a margin range of 30 to  33 percent.

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