Adnoc Drilling Company revealed on Monday that its revenue for the second quarter and the first half of 2024 surged to $935 million and over $1.8 billion, marking a year-on-year increase of 29 percent and 26 percent respectively. This robust growth in revenue led to record Ebitda levels for both the quarter and the first half. Specifically, the second quarter saw a 37 percent year-on-year and an 8 percent sequential rise in Ebitda, reaching $472 million, which translates to a 50 percent Ebitda margin. The first half Ebitda stood at $909 million, a 34 percent increase year-on-year, also with a margin of 50 percent, fueled by substantial revenue growth and effective cost management strategies.
Net profit for the quarter also saw significant growth, rising 29 percent year-on-year and 7 percent sequentially to $295 million, primarily due to the Ebitda increase. For the first half, net profit was $570 million, a 28 percent rise compared to the previous year. By the end of the second quarter, the company's fleet had expanded to 140 rigs, including 136 owned and four lease-to-own land rigs, up from 137 at the end of the first quarter, with the addition of three new land rigs.
The board of directors has sanctioned an interim dividend of $394 million, a 10 percent increase from the previous year, under the new enhanced and progressive dividend policy, equating to 9.0468 fils per share. This dividend is slated for distribution in the final week of August to all shareholders recorded as of August 12, 2024.
Onshore revenue increased by 27 percent year-on-year to $441 million, primarily due to the deployment of new rigs. Offshore jack-up revenue rose 48 percent to $284 million, attributed to increased activity from jack-ups over the past few quarters. Offshore island revenue saw a modest 2 percent increase to $53 million, largely due to a rig reactivation in the second quarter. Oilfield services revenue climbed 17 percent to $157 million, driven by heightened activity in drilling fluids and wireline services. The segment's overall activity volume is anticipated to rise throughout the year, aligned with planned phases and the ramp-up of IDS rigs and unconventional operations.
Adnoc Drilling has revised its medium-term revenue guidance, anticipating a compound annual growth rate (CAGR) between 14 percent and 18 percent from the 2023 base (previously 12 percent - 16 percent). Abdulrahman Abdulla Al Seiari, CEO of Adnoc Drilling, commented: "Adnoc Drilling has consistently executed its strategic initiatives, concluding the first half of the year strongly with numerous milestones. Our performance reflects our steadfast commitment to operational excellence and efficiency, a testament to the dedicated efforts of our team, crucial in providing exceptional service to our clients and enhancing value for our shareholders."
