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Abu Dhabi’s ADNOC Drilling sees 33% increase in net profit in 2022

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DUBAI, Feb 13 (Reuters) – ADNOC drilling in Abu Dhabi (ADNOCDRILL.AD) It reported a 33% rise in net profit for 2022 on Monday, with revenue boosted by its onshore and oilfield services businesses.

Net income in 2022 was $802 million, up from $604 million the previous year. Revenues increase from $2.27 billion in 2021 to $2.67 billion in 2022.

In a regulatory filing, the company said its performance was largely driven by the entry of new rigs into its operating fleet, which currently stands at 115 rigs.

The company also issued strong guidance for 2023, with revenue expected to be between $3 billion and $3.2 billion, representing year-over-year growth of up to 20%. The company said it expects a record net profit of $850 million to $1 billion for the same period in 2023.

Esa Ikaheimonen, chief financial officer of ADNOC Drilling, said in a post-earnings conference call that ADNOC Group plans to advance its oil production capacity expansion of 5 million barrels per day to 2027 from the previous 2030 target to meet global energy demand growth requirements.

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“That’s really what’s underpinning it because we’re on a critical path as a driller to achieve those goals,” Ikaheimonen told Reuters.

The United Arab Emirates’ plan to become self-sufficient in gas is another factor, Ikaheimonen said, with ADNOC Drilling currently operating two rigs drilling unconventional wells that “are expected to increase significantly over time”.

ADNOC Drilling will list on the Abu Dhabi Stock Exchange in 2021 after its majority shareholder, ADNOC, raised $1.1 billion from investors through a public share sale.

Reporting by Hadeel Al Sayegh; Editing by Tom Hogue and Uttaresh.V

Our standards: Thomson Reuters Trust Principles.

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