Latest news with #AbdullaAteyaAlMessabi
Reuters
14 hours ago
- Business
- Reuters
ADNOC Drilling reports 19% rise in profit on services strength
DUBAI, July 30 (Reuters) - ADNOC Drilling ( opens new tab, a unit of Abu Dhabi's state oil giant, reported a 19% rise in second-quarter profit on Wednesday, supported by strong performance in its oilfield services business and expansion into unconventional drilling. Net profit rose to $351 million in the three months to June 30, up from $295 million a year earlier, according to the company's financial statement. Revenue jumped 28% to $1.2 billion. ADNOC Drilling delivered "record financial and operational results as we continue to grow our fleet, expand our (oilfield services) footprint and support ADNOC's production capacity target," its CEO Abdulla Ateya Al Messabi told Reuters. Al Messabi, who took up the job of chief executive last month, said the company was pursuing M&A opportunities, particularly in the U.S. and Europe, and expected to add to its portfolio of technology-driven companies by the year's end. Oilfield services revenue surged 121% to $346 million in the quarter, as ADNOC Drilling ramped up unconventional and integrated drilling operations, which support ADNOC's production growth targets. "Unconventional drilling, which wasn't contributing in Q2 last year, is now a major driver. We've drilled over 60 wells and expect to be just under 100 by year-end," Chief Financial Officer Youssef Salem told Reuters in an interview. The company raised the floor of its full-year 2025 net profit guidance to $1.375 billion from $1.35 billion previously, with the ceiling still $1.45 billion. ADNOC Drilling's board approved a second quarterly dividend of $217 million, in line with the first-quarter payout. The company's EBITDA rose to $545 million in the quarter, up from $472 million a year earlier. Gross profit climbed to $573 million from $506 million. "Despite rising costs, our margins remain strong because of long-term contracts with ADNOC that give us full price visibility, and because we're constantly optimising costs through technology," Salem said.
Economy ME
16 hours ago
- Business
- Economy ME
ADNOC Drilling reports strong H1 2025 results with $692 million net profit
ADNOC Drilling Company has announced record-breaking financial results for the second quarter and first half of 2025, driven by fleet expansion, strong rig utilization, and robust growth in oilfield services (OFS). The company also reaffirmed its commitment to shareholder returns and continued regional expansion. In the first half of 2025, ADNOC Drilling reported revenue of $2.37 billion, up 30 percent year-on-year, while EBITDA reached $1.08 billion, marking a 19 percent increase. Net profit rose 21 percent to $692 million, as the company delivered solid performance across all segments and maintained strong profitability. In the second quarter of 2025, ADNOC Drilling's board of directors approved a $217 million second quarterly dividend (approximately 5 fils per share), reinforcing the company's progressive dividend policy. In the first half of 2025, ADNOC Drilling reported revenue of $2.37 billion, up 30 percent year-on-year Read: ADNOC's 24.9 percent shareholding in OMV to be acquired by XRG The dividend will be paid in the second half of August to shareholders of record as of August 8, 2025. With two dividends declared so far this year and a third expected later in 2025, ADNOC Drilling continues to deliver reliable and growing returns to shareholders. Abdulla Ateya Al Messabi, ADNOC Drilling CEO, said: 'Our record first half 2025 results once again demonstrate the strength, resilience, and scalability of ADNOC Drilling. We continue to deliver outstanding financial performance, dependable shareholder returns and disciplined regional expansion, all underpinned by our commitment to deploying AI and advanced technologies. 'With this momentum, we are firmly on track to achieving our full-year growth targets. ADNOC Drilling has consistently demonstrated its ability to grow in any phase of the energy cycle. With high and visible cash flows, growing earnings and strong visibility of future returns, we remain confident in our ability to continue delivering long-term value to our shareholders.' In the second quarter of 2025, ADNOC Drilling's board of directors approved a $217 million second quarterly dividend Strong segmental performance in 1H 2025 The Onshore segment reported $1.0 billion in revenue, an 18 percent increase year-on-year, driven by new rigs coming online and a $79 million contribution from the unconventional business. The Offshore segment (including jack-up and island rigs) delivered $671 million in revenue, a 1 percent year-on-year increase, supported by island rig reactivations. Two new jack-up rigs are set to contribute fully from Q3 2025. The Oilfield Services (OFS) segment saw standout performance, with revenue surging 127 percent year-on-year to $689 million. This growth was fueled by $265 million in unconventional business revenue, alongside increased integrated drilling services (IDS) activity and additional discrete services. Strategic expansion and innovation ADNOC Drilling continued to advance its regional footprint through a landmark agreement to acquire a 70 percent stake in SLB's land drilling rigs business in Kuwait and Oman. The move gives ADNOC Drilling immediate access to two rigs in Kuwait and six in Oman, reinforcing its leadership in the GCC's drilling and integrated services sector. The transaction remains subject to regulatory approvals. The company's technology platform Enersol progressed its strategic agenda in Q2 2025 by advancing local operations and expanding its tech presence across the UAE. Notable developments included the growth of its Abu Dhabi hub and the launch of the Enersol Energy Challenge, a first-of-its-kind initiative to identify UAE entrepreneurs developing transformative energy technologies. Enersol continues to build a robust transaction pipeline, following four acquisitions to date. Meanwhile, Turnwell, ADNOC Drilling's specialist in unconventional drilling, achieved new milestones by delivering high-efficiency wells using advanced drilling techniques such as autonomous drilling. To date, Turnwell has drilled 58 of the 144 planned wells — over 40 percent completion — and fractured more than 20 wells, demonstrating strong execution and supporting the UAE's unconventional resource development. ADNOC Drilling has consistently demonstrated its ability to grow in any phase of the energy cycle Record contract wins and market confidence In 2025, ADNOC Drilling secured approximately $4.8 billion in new contracts — its strongest-ever backlog addition. These include long-term integrated drilling, oilfield, and rig services contracts, offering visibility on earnings through 2040 and beyond. The company is now the most covered stock in the MENA region, with 20 global equity analysts tracking its performance. The majority maintain a Buy rating, signaling strong market confidence in ADNOC Drilling 's fundamentals and long-term value proposition. Embracing AI and automation ADNOC Drilling continues to integrate AI, automation, and advanced analytics across its operations to enhance safety, efficiency, and decision-making. During the most recent board of directors meeting, the company rolled out MEERAi, ADNOC's proprietary AI tool, designed to support faster, smarter executive decision-making. Upgraded 2025 financial guidance and medium-term targets Following its record H1 results, ADNOC Drilling has upgraded its full-year 2025 financial guidance. It also reaffirmed its medium-term outlook, including: FY2026 revenue projected at approximately $5 billion Conventional drilling EBITDA margins expected to exceed 50 percent, with OFS margins ranging from 22–26 percent Net Debt/EBITDA leverage target capped at 2.0x Net working capital target at around 12 percent of revenue Annual maintenance CapEx of $200–$250 million (excluding growth CapEx) Fleet expansion target of 151+ rigs by 2028 ADNOC Drilling's performance in 2025 continues to validate its long-term strategy, combining strong financial delivery with disciplined expansion, technology adoption, and value creation for shareholders across market cycles.
Arabian Business
18 hours ago
- Business
- Arabian Business
ADNOC Drilling upgrades 2025 and mid-term guidance following record H1 results
ADNOC Drilling Company upgraded its guidance for the financial year 2025 and for the medium term after announcing record-breaking performance across revenue, EBITDA, and net profit for the second quarter (Q2) and first half (H1) of 2025. Fuelled by fleet expansion, rig utilisation and OFS growth, ADNOC Drilling's revenue surged 30 per cent year-on-year to US$2.37 billion (compared to US$1.821 billion in H1 2024). EBITDA climbed 19 per cent YoY to US$1.08 billion (US$909 million in H1 2024) and net profit was up 21 per cent YoY to US$692 million from US$570 million. ADNOC Drilling posts record H1 performance This has led the company to raise its revenue guidance from US$4.6-4.8 billion to US$4.65-4.8 billion and net profit from US$1.35-1.45 billion to US$1.375-1.45 billion. Guidance for net profit margin has been raised from 28-30 per cent to 29-31 per cent. For its medium-term guidance, the company is expecting FY2026 revenue at around US$5 billion and around 50 per cent conventional EBITDA margin (conventional drilling margins exceeding 50 per cent and OFS margin in a range of 22-26 per cent). Conservative long-term leverage target is up to 2.0x net debt/ EBITDA, and net working capital as percentage of revenue target is around 12 per cent. Abdulla Ateya Al Messabi, ADNOC Drilling CEO, commented: 'Our record first half 2025 results once again demonstrate the strength, resilience, and scalability of ADNOC Drilling. We continue to deliver outstanding financial performance, dependable shareholder returns and disciplined regional expansion, all underpinned by our commitment to deploying AI and advanced technologies. 'With this momentum, we are firmly on track to achieving our full-year growth targets. ADNOC Drilling has consistently demonstrated its ability to grow in any phase of the energy cycle. With high and visible cash flows, growing earnings and strong visibility of future returns, we remain confident in our ability to continue delivering long-term value to our shareholders.' The Board of Directors approves the US$217 million (approximately 5 fils per share) second quarterly dividend for 2025, which is expected to be paid in the second half of August 2025 to all shareholders of record as of 8 August, 2025. This is the second quarterly dividend year-to-date, and a third one will be announced later in the year. The company's onshore business revenue increased by 18 per cent YoY to US$1 billion, mainly due to new rigs commencing operations and a US$79 million contribution from the unconventional business. Offshore business (Jack-up and Islands) revenue marginally increased 1 per cent to US$671 million, mainly due to reactivation of island rigs. The company's two new jack-ups, announced previously, will fully contribute to revenue from the third quarter. Revenue from Oilfield Services (OFS) increased by 127 per cent year-on-year to US$689 million, driven by US$265 million in revenue from unconventional business, coupled with increased integrated drilling services (IDS) activity and additional discrete services. During the second quarter of the year, ADNOC Drilling entered into an agreement to acquire a 70 per cent stake in SLB's land drilling rigs business in Kuwait and Oman. Upon completion, the company will gain immediate access to earnings, cashflow and returns accretive growth through two operating land drilling rigs in Kuwait and six in Oman, accelerating its expansion into key GCC geographies.
Zawya
01-07-2025
- Business
- Zawya
ADNOC Drilling awards $800mln hydraulic fracturing contract
Adnoc Drilling Company has announced that one of its key units, Adnoc Onshore, has awarded a major contract worth $800 million for the provision of integrated hydraulic fracturing services for conventional and tight reservoirs. This is its fifth major and accretive contract in just over 2 months. The five-year agreement is set to commence in Q3, marking another significant milestone in Adnoc Drilling's evolution as a fully integrated technology-enabled energy services company. The scope of work includes the design, execution and evaluation of multistage hydraulic fracturing treatments, which will be deployed across a wide range of assets in Abu Dhabi, said the company in a statement. Fracturing services for conventional and tight reservoirs are used to enhance the flow of oil or gas through existing natural pathways and optimize production by improving flow rates. The deal supports Adnoc's strategic goal to accelerate the development of conventional and tight reservoirs across the UAE, said the statement. This award further reinforces the Abu Dhabi group's leadership in high-tech oilfield services, combining next-generation equipment, artificial intelligence (AI) and real-time intelligence to deliver smarter, safer and more sustainable energy outcomes, it added. On the contract award, CEO Abdulla Ateya Al Messabi said: "This significant contract is a powerful endorsement of Adnoc Drilling's expanding capabilities and our trusted partnership with Adnoc Onshore. It reflects our ability to deliver high-impact, technologically advanced fracturing services that will help unlock the UAE's energy potential." "As we continue our transformation, we are proud to support the nation's strategic energy goals and reinforce our position as a leader in integrated drilling and completion solutions," he added. As per the deal, Adnoc Drilling will deploy advanced technologies throughout the project to maximise efficiency and performance. Proprietary fracturing simulation software will be used to optimise every stage of the operation, increasing flow rates and overall hydrocarbon recovery. Intelligent fluid systems will adapt dynamically in real-time to reservoir conditions, improving fracture efficiency and reducing environmental impact. Automated pumping units and blending systems will enhance safety, streamline operations and reduce the need for on-site manpower. The economic and financial impact of this contract further reaffirms the 2025 guidance and the 2026 revenue guidance. It also provides further growth and upside in 2027 onwards beyond the current guidance. This growth will be accretive to the current return on equity and earnings per share. The contract has a ceiling cumulative value of up to $800 million in revenue for Adnoc Drilling, subject to client discretion. Actual revenues will depend on the pace and extent of call-offs. This marks the fifth contract in just over two months, including a $1.63 billion five-year contract for Integrated Drilling Services (IDS), a $806 million contract for three island rigs and a $1.15 billion 15-year contract for two jack-up rigs, all awarded by Adnoc Offshore, and a $400 million backlog of Adnoc Drilling's signed acquisition in Oman and Kuwait.-TradeArabia News Service Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Arabian Business
30-06-2025
- Business
- Arabian Business
ADNOC Drilling secures $800m contract to boost UAE oil and gas production
ADNOC Drilling has secured a new contract worth up to $800m from ADNOC Onshore to provide integrated hydraulic fracturing services for conventional and tight reservoirs, the company announced today. The five-year agreement, set to begin in Q3 2025, marks a significant milestone in ADNOC Drilling's ongoing transformation into a fully integrated, technology-enabled energy services provider. The project will deploy advanced equipment, artificial intelligence (AI), and real-time analytics to deliver efficient, safe, and sustainable fracturing solutions across multiple assets in Abu Dhabi. ADNOC Drilling UAE oil boost The scope of work includes multistage hydraulic fracturing design, execution, and evaluation; use of proprietary fracturing simulation software to optimise production; intelligent fluid systems that adapt in real time to reservoir conditions and automated pumping and blending systems to reduce environmental impact and enhance safety Fracturing services are crucial for improving flow rates in oil and gas reservoirs by increasing permeability and unlocking previously hard-to-reach hydrocarbons—an important step in supporting the UAE's long-term energy strategy. Abdulla Ateya Al Messabi, ADNOC Drilling CEO, said, 'This significant contract is a powerful endorsement of ADNOC Drilling's expanding capabilities and our trusted partnership with ADNOC Onshore. 'It reflects our ability to deliver high-impact, technologically advanced fracturing services that will help unlock the UAE's energy potential. 'As we continue our transformation, we are proud to support the nation's strategic energy goals and reinforce our position as a leader in integrated drilling and completion solutions.' This is the drilling giant's fifth major contract in just over two months. Other recent awards include: A $1.63bn contract for Integrated Drilling Services (IDS) A $806m contract for three island rigs A $1.15bn 15-year contract for two jack-up rigs A $400m acquisition backlog across Oman and Kuwait The new award supports 2025 and 2026 revenue guidance, with potential upside from 2027 onward.
