Abu Dhabi National Oil Company (ADNOC) said Thursday that its drilling subsidiary—ADNOC Drilling—posted a 25% year-on-year surge in its net profit to $219 million in the first quarter of 2023, driven by its growing fleet of rigs and service offering expansion.
ADNOC Drilling's quarterly revenue reached $716 million, up 19% year-on-year, supported primarily by the offshore jack-up rigs and oilfield services segments, it said in a statement.
Earnings before interests, taxes, depreciation, and amortization (EBITDA) also rose 19% year-on-year to $333 million in the quarter ended March 31, thanks to further cost efficiencies.
Onshore revenue for the quarter hit $355 million, up 11% year-on-year compared to the same period a year earlier, helped by eight new land rigs.
Revenues of offshore jack-up rigs in the quarter jumped to $184 million, a 28% year-on-year increase. ADNOC Drilling, which became a publicly-traded company on the Abu Dhabi Exchange after its $1.1 billion IPO in October 2021, noted that the segment's growth started accelerating due to the introduction of five new jack-ups into the operational fleet in the second half of 2022.
Offshore revenue remained steady at $51 million compared to the previous quarter and the corresponding quarter a year earlier.
However, oilfield services revenue grew 43% year-on-year to $126 million due to increased activity across the entire portfolio.
The drilling company, which owns 115 rigs, making it one of the largest fleets in the Middle East region, has reported a 63% drop in its cash from operations during the quarter to $226 million, while its capital expenditure fell by 3% to $76 million.
