A number of subsidiaries of the Abu Dhabi National Oil Company “ADNOC”, led by ADNOC Drilling and ADNOC Distribution, achieved strong business results during the first quarter of this year, supported by high oil prices and an increase in demand for crude.
Today, Tuesday, May 10, 2022, ADNOC Drilling, listed on the Abu Dhabi Securities Exchange, announced its financial results for the first quarter of this year ending on March 31, 2022.
Earnings after interest, tax, depreciation and amortization increased to AED 1 billion (US$ 270 million), with a margin of 46.6%, as a result of the company’s continued strong cost efficiencies.
The company’s net profit for the first quarter increased by 59.1% on an annual basis, reaching 642 million dirhams (174.79 million dollars).
ADNOC Drilling is a key pillar in achieving ADNOC’s ambitious plans to increase its crude oil production capacity to 5 million barrels per day by 2030 and achieve gas self-sufficiency for the UAE.
ADNOC Distribution’s revenue
ADNOC Drilling recorded strong revenue growth during this period, reaching 2.206 billion dirhams ($600 million), an increase of 14.9% over the same period last year.
The growth in annual revenues in all business segments came in conjunction with the company’s maintenance on the right track to achieve its ambitious plans.
The company’s revenue increased with the number of new rigs owned by 104 rigs after the start-up of world-class land rigs from Helmreich & Bain, while the first quarter saw continued oilfield services growth driven by strong market share.
Onshore and offshore drilling
ADNOC Drilling delivered strong growth across all business segments, with revenues from its onshore drilling business during the first quarter of AED 1.171 billion ($320 million), an increase of 14.3% compared to the first quarter of 2021, driven by the commissioning of two new onshore drilling rigs.
Revenues from offshore drilling increased in the first quarter of 2022 to reach AED 528 million ($ 143.75 million), an increase of 4.3% compared to the first quarter of 2021, thanks to the start-up of the new offshore rig “Al Reem” and the increase in the number of operating days due to the decrease in the number of maintenance days. As a result of changes to the maintenance schedule.
Revenues of artificial island excavators during the first quarter of 2022 increased by 38.9% to reach 184 million dirhams ($ 50.09 million) compared to the same period last year, after including arrangements to equip the four excavators on artificial islands in the results of the first half of 2021.
Oilfield services revenues increased during the first quarter of 2022 by 25.7% compared to the first quarter of last year to reach 323 million dirhams ($ 87.94 million), due to the strong growth in hydraulic fracturing activities, electronic and wired recording of drilling information and well drilling operations, as well as Growth in the blending and liquid slurry services sector.
ADNOC Drilling’s market share in the integrated drilling services sector reached 45% on March 31, 2022.
During the three months, the company recorded a high rate of operating the rig fleet by 95%, as 145 wells were drilled so far this year, with a total of 0.95 million feet.
ADNOC Drilling continues to focus on enhancing security and safety and raising the efficiency of its operations, in order to maintain the distinguished level that customers are accustomed to, which in turn leads to additional improvements in safety procedures and the operation of rigs.
On the other hand, ADNOC Distribution’s profit before interest, tax, depreciation and amortization increased by 7.8% year-on-year to reach AED881 million ($239.86 million).
Net profit for the same period increased by 6.3% on an annual basis to reach AED 671 million ($ 182.68), and it maintained strong cash flow generation as free cash flow reached AED 1.9 billion ($ 520 million), according to the financial results issued today, Tuesday by the company.
The company saw a recovery in total fuel volumes sold compared to the first quarter of the previous year, an increase of 11% year-on-year.
Corporate fuel volumes also posted solid growth of 19% year-on-year, driven in part by the signing of new sales agreements in the last quarter of 2021.
The total profit of the non-fuel retail business also increased by 11% compared to the same period in 2021, with a 20% increase in the number of non-fuel transactions across the country.
ADNOC Distribution Stations
During the first quarter of 2022, ADNOC Distribution strengthened its presence by expanding its network of stations locally and internationally, bringing the total number of its stations to more than 500 service stations in the UAE and Saudi Arabia.
The company opened 15 new service stations in Saudi Arabia, bringing the total of its stations to 55 service stations. In addition, the company opened 3 new service stations in the UAE, bringing the number of its stations within the country to 464 service stations.
ADNOC Distribution is committed to its plans to open 20-30 new stations in the UAE by the end of 2022.
During the first quarter of the year, ADNOC “Voyager” lubricants maintained its international expansion momentum, as it was now exported to 20 countries. The company also expanded its products by launching the green range of ADNOC “Voyager” oils, providing its customers with 100% vegetable lubricants for gasoline and diesel engines.
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