Abu Dhabi’s state oil drilling unit reports 19 per cent profit rise
ADNOC Drilling (ADNOCDRILL.AD), a unit of Abu Dhabi’s state oil giant, reported a 19 per cent rise in second-quarter profit this week, 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 per cent 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 US and Europe, and expected to add to its portfolio of technology-driven companies by the year’s end.
Oilfield services revenue surged 121 per cent 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.