Resilient nine-month revenue increased 12% year-on-year to $1.7 billion with EBITDA at $785 million
Exceptional financial performance follows record ADX listing
50% Q3 EBITDA Margin drives cash from operations1 to 105% of EBITDA
Four-fold capital expenditure increase year-on-year for the nine-month period, supporting ambitious growth agenda
In the first quarterly disclosure since its record listing on the Abu Dhabi Securities Exchange (ADX) in early October 2021, ADNOC Drilling delivered strong and resilient top line growth, with revenue for the first nine months of 2021 increasing 12% to $1.7 billion compared to the same period last year.
The Company reported EBITDA of $785 million, surpassed targets, with a very healthy margin of 46%, and net profit of $460 million for the period, up 9% year-on-year. For the third quarter, ADNOC Drilling reported revenues of $571 million, up 11% year-on-year, and EBITDA of $285 million, representing a 50% margin in the quarter.
Strong Growth Across Drilling Operations
ADNOC Drilling reported strong and resilient revenue growth across its drilling operations, driven in particular by the Onshore segment and Oilfield Services.
EBITDA for the nine-month period was $785 million, up 11% year-on-year and beating expectations, demonstrating sustained resilience throughout the period, despite Covid-19 related disruptions continuing through the period. ADNOC Drilling’s EBITDA margin of 50% reflects the Company's commitment and continued focus on driving efficiency throughout the business, highlighted by its industry-leading fleet utilization rate of 95.5%2 as of September, 30 2021. ADNOC Drilling continued to deliver highly attractive cash flow generation during the period, with cash from operations1 increasing 15% year-on-year to $823 million, equating to 105% of EBITDA.
Capital expenditure for the nine-month period increased four-fold on a year-on-year basis, to $454 million in 2021. These investments will support the ambitious growth of the Company’s OFS expansion operations and rig acquisitions, with these new rigs expected to commence operations in 2022.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Chairman of ADNOC Drilling, said: “With double-digit revenue growth, ADNOC Drilling has demonstrated exceptional financial performance and commercial resilience, reflected in a very robust third-quarter. These impressive results follow ADNOC Drilling’s record ADX listing in early October, and were well above market forecasts.
“ADNOC Drilling sits at the heart of ADNOC’s ambitious growth plans and is critical in enabling ADNOC to achieve its significant production capacity growth targets and help the UAE achieve gas self-sufficiency. ADNOC will remain a committed, long-term majority shareholder in ADNOC Drilling as the Company continues on its exciting growth trajectory while delivering attractive returns for shareholders.”
Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, said: “Coming shortly after our landmark IPO, these very strong financial and operational results underpin an ambitious growth plan that is built on the quality and diligence of our people, who have worked tirelessly to achieve safe and efficient operations while at the same time growing our business.
“As we look to the final quarter and to 2022, we see our operations returning to normal post- pandemic and we expect to continue to make significant progress in the execution of our long-term strategy. Having positioned our business to build on the trust that our new shareholders have placed in us, our immediate focus will be to meet the robust financial targets we have set, while maintaining operational excellence for our everyday activities. These targets are underpinned by ambitious sustainability goals, as we strive to achieve industry-leading ESG performance.”
ADNOC Drilling remains active in a number of mega-tenders in Abu Dhabi, while also pursuing the further expansion of its discrete services portfolio and increased market share in the OFS segment. If awarded, these tenders will expand the Company’s portfolio outside of the Integrated Drilling Services (IDS) segment, with awards expected during 2022.
In October, following the success of its heavily oversubscribed IPO on ADX, ADNOC Drilling was included in three of FTSE Russell’s globally recognized indices including the FTSE Emerging Index, FTSE Global Large Cap Index and FTSE All-World Index.
|USD Millions||Q3 2021||Q3 2020||% Change||9M 2021||9M 2020||% Change|
|Earnings per share (USD/share)||0.0112||0.0075||49%||0.0287||0.0264||9%|
|Cash from Operations1||291||212||37%||823||716||15%|
1Cash from Operations – Net profit for the period adjusted for non cash items before working capital changes 2Utilization rate based on rig availability - Cumulative of (Rig days less actual maintenance days less rig related non-productive time less actual rig move days) divided by Cumulative of (Rig days less planned maintenance days less planned rig move days). 3Capital expenditure - Payments for purchase of property and equipment