Business

Adnoc Drilling announces 2021 net income of $604m

Business main fleet utilisation and wonderful progress on value effectivity ends in full yr EBITDA of over $1 billion

Adnoc Drilling Firm has introduced its monetary outcomes for the fourth quarter and full yr ending December 31, 2021, with income for the 12-month interval growing 8.2 per cent to $2.27 billion in comparison with the identical interval final yr.

12 months-on-year income development was led by the Onshore phase, as the corporate continues to help Adnoc Group’s program to considerably develop manufacturing capability. The corporate’s Oilfield Companies (OFS) phase additionally considerably grew income and EBITDA year-on-year.

Full yr EBITDA was $1.047 billion, with a margin of 46.1 per cent, as the corporate made wonderful progress on delivering additional value efficiencies. Internet revenue for the total yr was $604 million, up six per cent year-on-year.

12 months-on-year, This fall 2021 EBITDA grew by 2.7 per cent. Over the interval, EBITDA margin expanded to 45.6 per cent, reflecting, partially, energetic administration of centrally allotted bills within the quarter. Income development was strongest in OFS, serving to to offset weaker This fall 2021 revenues in drilling segments, leaving This fall 2021 revenues basically flat vs This fall 2020. 12 months-on-year underlying working efficiency was steady. Monetary efficiency was decrease because of non- recurring drilling revenues booked within the prior comparative yr.

Onshore income for the total yr was $1.14 billion, up six per cent over 2020, largely pushed by new rigs and rig reactivations. 12 months-on-year, This fall 2021 income was $293 million, down 4 per cent vs This fall 2020, impacted by stacking declare receipts booked within the comparative interval. Total working rig days and underlying income in This fall 2021 was increased than within the prior corresponding interval.

Offshore Jackup income for the total yr was $596 million, broadly flat vs the prior yr at $597 million. Offshore Island income was $204 million for the total yr 2021, just like 2020.

The Oilfield Companies phase carried out properly all year long, pushed by increased exercise from continued growth, with wholesome margin growth. OFS income for the total yr interval elevated 48 per cent year-on-year to $329 million.

Adnoc Drilling reported a fleet utilisation fee of 96 per cent for the yr to December 31, 2021. The corporate’s money from operations elevated seven per cent year-on-year to $1.085 billion, equating to money conversion of 104 per cent of EBITDA. Capital expenditure for the total yr elevated by 34 per cent to $505 million in 2021, as the corporate pursues bold plans to cater to shopper demand.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Business and Superior Expertise, Adnoc Managing Director and Group CEO, and Chairman of Adnoc Drilling, mentioned: “Adnoc Drilling’s first full yr outcomes as a listed firm are an necessary milestone within the firm’s journey since its record-breaking IPO on ADX. The robust full yr outcomes and profitable strategic execution are testomony to the important function that the corporate is enjoying in enabling vital manufacturing capability development for Adnoc in addition to the UAE’s goal to realize gasoline self sufficiency.”

He added: “In gentle of robust efficiency in 2021, the board is happy to suggest a ultimate dividend of $325 million for the second half of 2021, bringing the full dividend for the monetary yr to $685 million, consistent with the steering we supplied on the time of the IPO. We’re additionally capable of reconfirm our steering goal of 5 per cent annual development in dividend per share from 2022-2026.”

Abdulrahman Abdullah Al Seiari, CEO of Adnoc Drilling, mentioned: “I’m pleased with the outcomes that Adnoc Drilling has delivered over the previous 12 months, significantly having delivered a record-breaking IPO and sustained enterprise development in a difficult yr marked by the continued world pandemic. This was enabled by our clear strategic targets, the dedication of our highly-skilled and devoted workforce and our unwavering dedication to industry-leading well being and security requirements.”

“We stay very enthusiastic in regards to the yr forward as we construct out our drilling belongings and Oilfield Companies with our strategic companions Baker Hughes and Helmerich & Payne. Expertise and innovation shall be on the coronary heart of that program, and we’re trying ahead to reporting on quite a few necessary milestones for the Firm within the months to return,” he mentioned.

Earnings have been supported by stable progress on effectivity and price self-discipline targets, together with head workplace prices, the place administration believes additional value administration is achievable and can assist ship enhancing margins. In the meantime, the corporate’s robust working capital place on the yr finish displays materially improved buyer collections and money conversion. Internet debt at December 31, 2021 was $1.086 billion, representing a internet debt/EBITDA a number of of 1.03.

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