Adnoc Drilling’s third-quarter net profit rises 30% on fleet expansion and oilfield services growth

Abu Dhabi company’s revenue during the three-month period grew 32 per cent to exceed $1 billion

An Adnoc Drilling oil platform. The company has revised its profit forecast for this year. Photo: Adnoc

Adnoc Drilling, the largest national drilling company in the Middle East by rig fleet size, reported a 30 per cent increase in third-quarter profit, supported by fleet expansion and growth of the oilfield services segment.

Net profit for the three months to the end of September rose to $334.8 million, the company said in a filing on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded.

The company’s third-quarter revenue rose 32 per cent year-on-year to more than $1 billion. Growth was driven by the expansion of onshore and offshore fleets as well as the oilfield services segment, further bolstered by the company’s Turnwell and Enersol joint ventures, it said.

“We remain well on-track to deliver continued accelerated growth,” said Abdulrahman Al Seiari, chief executive of Adnoc Drilling.

Adnoc Drilling has been strengthening its fast-growing oilfield services business as oil companies in the Middle East region increase drilling to meet production targets.

Last month, Adnoc Drilling, Schlumberger, and Patterson-UTI formed a joint venture, Turnwell Industries, which will focus on the UAE's unconventional oil and gas programme.

Post completion of the joint venture, Adnoc Drilling, through a wholly owned subsidiary, will hold a 55 per cent majority equity stake, SLB a 30 per cent equity stake and Patterson-UTI the remaining 15 per cent equity stake.

Adnoc Drilling and Alpha Dhabi Holding also launched Enersol, a tech-focused joint venture, in January. The company aims to invest $1.5 billion in technology-driven firms in the oilfield services sector by the end of next year, a senior official told The National this month.

Adnoc Drilling has rapidly expanded its operational fleet. Photo: Adnoc

The company said revenue from its onshore business, the largest, rose 29 per cent year-on-year in the third quarter to $487 million, mainly due to new rigs starting operations.

Meanwhile, revenue from the offshore jack-up segment increased 46 per cent to $290 million, due to higher activity from jack-ups compared to last year, as operations expanded.

Adnoc Drilling reported a 36 per cent increase in oilfield services revenue, reaching $197 million. Overall activity levels are expected to rise in the current quarter, supported by a rise in integrated drilling services rigs and growth in the unconventional business, it said.

For the first nine months of this year, the company’s net profit rose 28.5 per cent to $904.5 million, while revenue increased to $2.8 billion from $2.22 billion in the same period a year earlier.

The company also raised its profit and revenue forecasts for the full year. Adnoc Drilling raised the lower limit for its annual net profit to between $1.2 billion and $1.3 billion, compared with the earlier range of $1.15 billion to $1.3 billion.

Revenue is now expected to be between $3.8 and $3.9 billion in 2024, up from the company's previous estimate of $3.7 to $3.85 billion.