ADNOC Drilling Delivers Record First Quarter Revenue and EBITDA, Exceeding Market Expectations
London, 13 May 2024, /Oilandgaspress/: – ADNOC Drilling Company PJSC announces record first quarter revenue and EBITDA for the period ending March 31, 2024.
ADNOC Drilling has exceeded market expectations again this quarter, the third in a row, with revenue increasing to $886 million, up 24% year-on-year. The Offshore Jack-up and Oilfield Services (OFS) segments drove revenue growth, increasing 51% and 16% respectively year-on-year. EBITDA grew 31% year-on-year to $437 million, driven by strong operational performance, leading to a year-on-year EBITDA margin expansion to 49%. Net profit for the quarter reached $275 million, up 26% year-on-year.
Highlights for the first quarter ending March 31, 2024
Onshore: Revenue for the quarter was $411 million, up 16% year-on-year, mainly due to increased onshore activity, driven by the contribution from new rigs commencing operations.
Offshore Jack-up: Revenue for the quarter was $278 million, a 51% increase compared to 2023, mainly due to higher activity from the additional jack-up rigs contributing revenue.
Offshore Island: Revenue for the quarter was in line with first quarter 2023 as activity was broadly stable year-on-year.
Oilfield Services (OFS): Revenue for the quarter was $146 million, an increase of 16% year-on-year driven by increased activity in drilling fluids and directional drilling. The overall volume of activity of the segment is expected to increase throughout the year, in line with planned phasing and driven by IDS rigs ramp-up and unconventionals.
Key Financial Metrics for 1Q 2024
| USD Millions | 1Q24 | 1Q23 | % | 4Q23 | % |
|---|---|---|---|---|---|
| Revenue | 886 | 716 | 24% | 841 | 5% |
| EBITDA | 437 | 333 | 31% | 424 | 3% |
| Net profit (normalized1) | 275 | 219 | 26% | 2871 | -4%1 |
| 1Earnings per share (normalized, USD/share) | 0.017 | 0.014 | 26% | 0.0181 | -4%1 |
| Capital Expenditure2 | (110) | (76) | 45% | (213) | -48% |
| Cash from Operations3 | 347 | 226 | 54% | 397 | -13% |
1 Excluding from fourth quarter 2023 $42 million one-off full-year positive impact of reduction in depreciation from the change in remaining useful life and residual value estimates of assets, along with a more granular approach in asset recognition. Reported fourth quarter 2023 Net profit was $329 million, and Earnings per share was $0.021
2 Capital expenditure figures in the table refer to actual cash payments made in the period.
3 Cash from operations – Net cash generated from operating activities.
New Dividend Policy 2024-28
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). Moreover, the Board of Directors, at its discretion, may consider additional dividends over and above the progressive dividend policy after taking into account growth opportunities while maintaining net debt/EBITDA up to 2x, excluding transformative M&A.
The new dividend policy is subject to shareholder approval at an upcoming General Shareholder Meeting, the date of which will be advised shortly.
As per the policy, dividends are expected to be paid semi-annually with a final dividend distributed to shareholders in the first half and the payment of the interim dividend in the second half of each fiscal year.
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