Adnoc Drilling Company reports a net profit of $604 million for the financial year ending December 31, 2021, with an 8.2 percent increase in revenue of $2.27 billion as compared to the last year.
Year-on-year revenue growth was led by the Onshore segment, as the company continues to support Adnoc Group’s program to significantly grow production capacity. The company’s Oilfield Services (OFS) segment also significantly grew revenue and EBITDA year-on-year.
Full-year EBITDA was $1.047 billion, with a margin of 46.1 percent, as the company made excellent progress on delivering further cost efficiencies. Net profit for the full year was $604 million, up to six percent year-on-year.
Year-on-year, Q4 2021 EBITDA grew by 2.7 percent. Over the period, the EBITDA margin expanded to 45.6 percent, reflecting, in part, active management of centrally allocated expenses in the quarter. Revenue growth was strongest in OFS, helping to offset weaker Q4 2021 revenues in drilling segments, leaving Q4 2021 revenues essentially flat vs Q4 2020. Year-on-year underlying operating performance was stable. Financial performance was lower as a result of non-recurring drilling revenues booked in the prior comparative year.
Onshore revenue for the full year was $1.14 billion, up to six percent over 2020, largely driven by new rigs and rig reactivations. Year-on-year, Q4 2021 revenue was $293 million, down four percent vs Q4 2020, impacted by stacking claim receipts booked in the comparative period. Overall operating rig days and underlying revenue in Q4 2021 were higher than in the prior corresponding period.
Offshore Jackup revenue for the full year was $596 million, broadly flat vs the prior year at $597 million. Offshore Island revenue was $204 million for the full year 2021, similar to 2020.
The Oilfield Services segment performed well throughout the year, driven by higher activity from continued expansion, with healthy margin development. OFS revenue for the full year period increased 48 percent year-on-year to $329 million.
Adnoc Drilling reported a fleet utilization rate of 96 percent for the year to December 31, 2021. The company’s cash from operations increased seven percent year on year to $1.085 billion, equating to a cash conversion of 104 percent of EBITDA. Capital expenditure for the full year increased by 34 percent to $505 million in 2021, as the company pursues ambitious plans to cater to client demand.
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Adnoc Managing Director and Group CEO, and Chairman of Adnoc Drilling said: “Adnoc Drilling’s first full-year results as a listed company are an important milestone in the company’s journey since its record-breaking IPO on ADX. The strong full-year results and successful strategic execution are testaments to the vital role that the company is playing in enabling significant production capacity growth for Adnoc as well as the UAE’s objective to achieve gas self-sufficiency.”
He added: “In light of strong performance in 2021, the board is pleased to recommend a final dividend of $325 million for the second half of 2021, bringing the total dividend for the financial year to $685 million, in line with the guidance we provided at the time of the IPO. We are also able to reconfirm our guidance objective of five percent annual growth in dividend per share from 2022-2026.”
Abdulrahman Abdullah Al Seiari, CEO of Adnoc Drilling, said: “I am proud of the results that Adnoc Drilling has delivered over the past 12 months, particularly having delivered a record-breaking IPO and sustained business growth in a challenging year marked by the ongoing global pandemic. This was enabled by our clear strategic objectives, the commitment of our highly-skilled and dedicated workforce, and our unwavering commitment to industry-leading health and safety standards.”
“We remain very enthusiastic about the year ahead as we build out our drilling assets and Oilfield Services with our strategic partners Baker Hughes and Helmerich & Payne. Technology and innovation will be at the heart of that program, and we are looking forward to reporting on a number of important milestones for the Company in the months to come,” he said.
These earnings were achieved through efficient cost management objectives that will continue to deliver rising margins. Furthermore, the firm’s steady working capital position reflects improved customer count and cash conversion.
