Adnoc Drilling expects to pass $5 billion in revenue this year, topping last year's record despite Iranian attacks on energy sites across the UAE, its chief financial officer said.
"Revenue targets for this year are going to surpass last year, so we are talking at least $5 billion this year and Ebitda [earnings before interest, taxes, depreciation and amortisation] up to $2.3 billion," Youssef Salem told The National at the Make it in the Emirates event in Abu Dhabi.
"Our operations are completely resilient to recent events. We will continue to deliver fully in line with our expectations."
Energy sites across the Middle East, including in the UAE, Saudi Arabia, Iraq, Bahrain and Qatar, were attacked after Israel and the US launched strikes on Iran on February 28. In the UAE, Adnoc’s facilities, including its Shah and Habshan gas plants and the Bab field in Abu Dhabi, were attacked by Iran.
Operations were suspended at the Shah gas plant in Abu Dhabi, a site that supplies about 20 per cent of the UAE's gas supply and 5 per cent of the world's granulated sulphur, after a drone attack in March. The Habshan gas plant also reported damage after falling debris from an intercepted Iranian attacked caused two fires.
Debris also fell near Adnoc Gas assets, but operations continued safely. “Temporary operational adjustments" were made to the production of liquefied natural gas (LNG) and liquids in response to the disruption to shipping in the Strait of Hormuz.
Adnoc Drilling, the Middle East’s biggest drilling company by rig count, will exceed revenue, net income and Ebitda generated by the company last year amid geographic expansion and growth in its portfolio, Mr Salem said.
The company’s income is also expected to rise to $1.5 billion, up from $1.45 billion delivered by the company last year, he added. It also reported a revenue of $4.9 billion and Ebitda of $2.2 billion last year.
The company is also planning geographic expansion by adding new rigs to its fleet in the Gulf. It also plans to sign new contracts through its technology investment-focused unit Enersol.
“We grew now to a fleet of more than 170 rigs, the largest drilling fleet in the Middle East and North Africa,” he said. “There is also geographic growth, apart from the UAE, we have no operations in Oman, Kuwait, Bahrain and other countries. Technology growth ... we have now more technology portfolio that we can deploy.”
About 90 per cent of its revenue comes from its UAE operations, with Adnoc accounting for about 60 per cent. The remaining 40 per cent comes from international companies that partner with Adnoc, including Exxon Mobil, BP and TotalEnergies.
Adnoc Drilling has more plans for acquisitions this year. On Monday, the company said it was buying an 80 per cent stake in Oman’s MB Petroleum Services, ahead of its mid-year schedule this month.
The acquired business includes 22 drilling and workover rigs, production service units, and operations across the four Gulf states and the deal is valued at $204 million.
Adnoc Drilling plans to keep expanding its geographic reach, with Enersol already operating across more than 40 countries through investments in AI and other energy technologies, Mr Salem said. “We'll continue to grow, both organically and inorganically. Both are very central to our growth strategy," he added.
Last year, Adnoc Drilling also signed a joint venture agreement with global oilfield services company SLB for its land drilling rigs business in Kuwait and Oman, as the Abu Dhabi company seeks to expand beyond the UAE. The agreement includes eight fully operational land rigs – two in Kuwait and six in Oman – under contract with the national oil companies of both countries, it said at the time.
