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Economy ME
2 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.
Reuters
a day ago
- Business
- Reuters
Baker Hughes bets on LNG, data center demand with $13.6 billion Chart Industries deal
July 29 (Reuters) - Baker Hughes (BKR.O), opens new tab said on Tuesday it would buy Chart Industries (GTLS.N), opens new tab in a $13.6 billion all-cash deal, including debt, edging out rival suitor Flowserve (FLS.N), opens new tab, to expand in the LNG, data centers and decarbonization segments. The deal is part of Baker Hughes' efforts to leverage its industrial and energy technology portfolio, which helped boost second-quarter earnings, and adds to the ongoing consolidation in the oilfield services and industrial supply sector. The company has offered Chart Industries' shareholders $210 per share held, representing a premium of about 22% based on the last close. Chart Industries shares were up 16.2% at $199.50 in premarket trading. The deal follows Chart's termination of a prior deal to merge with Flowserve, which decided not to raise its bid after being told Baker Hughes' proposal was "superior". Shares of Flowserve, which will receive a $266 million breakup fee, were up 4.36% at $57.25 in premarket trading. Flowserve's all-stock bid valued Chart at $159.98 per share, according to Reuters calculations. The transaction has an equity value of about $9.44 billion, according to Reuters calculation. It is expected to close by mid-year 2026. Chart manufactures industrial equipment such as valves and measurement technology for gas and liquid molecule handling. Baker Hughes said $325 million in annualized cost synergies were expected to be realized at end of the third year.
Yahoo
a day ago
- Business
- Yahoo
Baker Hughes to finalise $13.6bn deal to acquire Chart Industries
Baker Hughes, a leading oilfield services provider, is reportedly on the verge of acquiring Chart Industries in a deal valued at approximately $13.6bn, reported the Financial Times, citing sources. This move would disrupt an earlier merger agreement between Chart and Flowserve, potentially consolidating Baker Hughes' position in the industrial and energy technology sector. The acquisition is poised to enhance Baker Hughes' ability to serve industries that handle gases and liquids at extremely low temperatures, such as liquefied natural gas and nuclear energy. Chart's specialisation in this area complements Baker Hughes' strategic growth in its industrial and energy technology division, which is valued at $46bn. The proposed deal offers a 22% premium on Chart's current market value, equating to an equity value of around $10bn. Following the news, Chart's shares surged by 16.5% to $200 in after-hours trading on Monday. The acquisition could be announced imminently, although sources warned that final terms are still subject to change. Chart Industries had initially planned to merge with Flowserve in a $19bn all-stock merger, but Baker Hughes' competitive bid prompted Chart's board to reassess their options. Flowserve's shares also experienced a 5.2% increase after the news broke. Under CEO and chair Lorenzo Simonelli, Baker Hughes has been actively pursuing acquisitions to diversify its portfolio. Simonelli recently expressed the company's intent to target opportunities that would bolster its industrial presence. Baker Hughes shares have risen by 21% over the past year. In addition to the Chart Industries deal, Baker Hughes is set to acquire Continental Disc for $540m. This transaction, expected to close in the fourth quarter of 2025, will further expand Baker Hughes' safety pressure management offerings. "Baker Hughes to finalise $13.6bn deal to acquire Chart Industries" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Daily Mail
2 days ago
- Business
- Daily Mail
Wood Group moves closer to Sidara takeover which would see it delist from London
John Wood Group has further extended the deadline for potential buyer Sidara to make a firm takeover offer for the company. Sidara has until 5pm on 25 August to make a concrete offer, or to announce that it doesn't intend to do so. The North Sea-focused oilfield services provider, which employers some 35,000 people across 60 countries, had already extended the deadline several times, with Sidara previously having until 28 July to make an offer. In April, Wood Group said it 'would be minded' to recommend Sidara's conditional proposal to pay £242million, or 35 pence per share, for the company if Sidara makes a firm offer. The deal would include a $450million capital injection for the Aberdeen-based firm. It would also mark another big delisting from the London Stock Exchange. The firm said there is commercial alignment on the headline terms of refinancing between Sidara and Wood's lenders. It added that the proposed refinancing is conditional on Sidara making an offer, and that offer being approved by shareholders. Debt facilities would be extended to October 2028 under the deal. Sidara is considering cutting its takeover offer price as a result of the financial regulator's investigation into the firm withholding information from its auditors, the Financial Times reported. The Dubai-based firm previously attempted to acquire Wood Group in May 2024 for 205 pence per share, which Wood Group rejected. It later offered £1.58billion, or 230 pence per share, before pulling out of deal in August last year due to 'rising geopolitical risks and financial market uncertainty'. Sidara relaunched efforts to acquire Wood Group in February. Private equity giant Apollo Global Management tried to purchase the firm in 2023, making four proposals, including a final offer of 240p per share, before the Wood Group walked away without explanation. Last month the Financial Conduct Authority launched a probe into Wood Group covering early 2023 up to November last year. In an independent review, Deloitte found 'material weaknesses and failures' in the financial culture of its projects business. Deloitte added: 'The cultural failings appear to have led to instances of information being inappropriately withheld from, and unreliable information being provided to, Wood's auditors.' Wood Group shares remain suspended due to delays in publishing its full year results, the firm dropped out of the FTSE 250 in March. Founded as Dar al-Handasah in Lebanon in 1956, Sidara is a network of engineering and design companies employing about 21,500 people with a specialist focus on large-scale building projects.
Yahoo
6 days ago
- Business
- Yahoo
Halliburton CEO: Oil and gas markets are 'softer' than expected and will remain weak for all of 2025
A combination of weaker oil prices, widespread spending cuts, and ramped-up OPEC crude oil volumes created a softer-than-expected industry environment that will continue at least through the rest of 2025, the CEOs of oilfield services leaders Halliburton and SLB said. Global economic volatility, including ongoing tariff uncertainty, is leading oil and gas producers to plan more conservatively for the rest of the year than anticipated, they said, although though the longer-term oil and gas outlook remains bullish. The U.S. and Mexico are showing particular weakness even as shale oil and gas technologies developed in the U.S. over the past 20 years spread worldwide from Argentina to Australia, said Halliburton chairman and CEO Jeff Miller during the July 22 earnings call. 'To put it plainly, what I see tells me the oilfield services market will be softer than I previously expected over the short to medium term,' Miller said, arguing that oil producers and countries are cutting back spending more dramatically than current oil prices would normally necessitate. The U.S. oil pricing benchmark is about $66 per barrel, and it would need to rise well above $70 to be considered relatively healthy for the industry. What that means for Halliburton and SLB is focusing more on technology and some of their service specialties while retiring some equipment and well completions—or fracking—fleets. 'We'll clearly stack some fleets just because we're not going to work at uneconomic levels,' Miller said. 'It's strategic for us, and it takes some equipment out of the market as well. But, from our perspective, working at uneconomic levels literally burns up equipment, creates HSE (health, safety, and environment) risk, and all sorts of things that we just don't want to do.' On the other hand, Halliburton (194 in the Fortune 500) is growing market share with its new autonomous and electrified fracking fleets, called Zeus IQ, and has partnered with Chevron (No. 16 in the Fortune 500) and others. Halliburton first developed early hydraulic fracturing, or fracking, techniques more than 75 years ago under founder Erle P. Halliburton. For all of 2025, Halliburton now estimates its North American revenues will decline by more than 10%. Halliburton reported second-quarter revenues that fell nearly 6% from $5.83 billion to $5.51 billion year over year. Net income plunged 33% from $709 million down to $472 million. The biggest oilfield services company in the world, SLB (479 in the Fortune Global 500), formerly Schlumberger, also saw its quarterly revenues dip 6% year on year to $8.55 billion. Net income of $1.01 billion fell by 9%. Oilfield outlook OPEC and its allies have surprised much of the energy industry since this spring by unwinding years of voluntary production cuts more rapidly than anticipated to gain back market share. Dumping those new barrels on a saturated global marketplace Is adding to the weaker oil price environment, leading U.S. oil and gas producers and others to cut back spending and, in many cases, oil and gas volumes. Adding to the weakness is the oilfield services sector becoming a victim of its own success. Efficiently gains now allow producers to extract more oil and gas per location without requiring as many drilling rigs and fracking fleets. In mid-July, SLB closed its nearly $8 billion acquisition of ChampionX. The merger gives SLB a stronger footprint in artificial lift and production chemicals. Such services keep the oil and gas wells flowing optimally long after they are drilled and put into operation, which CEO Olivier Le Peuch said helps SLB avoid some of the industry's inherent cyclicality. Even as drilling activity slows down, the existing wells still need just as much servicing and maintenance. In fact, the number of drilling rigs active in the U.S. has fallen by 7% in the past 12 months, down to 544 active rigs, according to research firm Enverus, and the decline is expected to continue. Nearly half of all the active rigs are in the still-booming Permian Basin in West Texas and southeastern New Mexico. 'As we have seen more recently, the short-cycle markets have been more reactive to the persistent slightly lower commodity price than anticipated,' Le Peuch said. 'Yet, all in, we are seeing this as a resilient market going forward.' This story was originally featured on
