Adnoc Drilling fourth-quarter income surges 41 per cent on revenue boost

Adnoc Drilling, the largest national drilling company in the Middle East by rig fleet size, has reported an annual 41 per cent rise in its fourth-quarter net profit, as the addition of a number of operational rigs into the fleet boosted revenue.

Net profit for the three months to the end of December rose to $329 million, the company said in a filing yesterday to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue during the period rose by 15 per cent to $841 million. Net profit for the fourth quarter was “positively impacted by around $55 million reduction in depreciation”, the company said.

“Our ambitious fleet expansion strategy coupled with the accelerated growth of oilfield services has delivered exceptional bottom-line performance, beyond the expectations of the market,” said Adnoc Drilling chief executive Abdulrahman Al Seiari.

Adnoc Drilling has been expanding operations as parent company Adnoc looks to boost its production capacity to 5 million barrels per day by 2027. In November, Adnoc Drilling and Alpha Dhabi Holding set up a joint venture that aims to invest up to $1.5 billion to acquire technology-enabled companies in the oilfield services and energy sectors.

Adnoc Drilling’s 2023 fullyear net profit rose 29 per cent annually to $1.03 billion. Revenue during the period climbed 14 per cent to $3.06 billion.

“Revenue growth was driven primarily by the offshore jackup and oilfield services segments, increasing 31 per cent and 37 per cent respectively,” the company said.