ADNOC Drilling Company, a leading oil and gas drilling services provider, continues its impressive performance streak, achieving record first-quarter revenue and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the period ending March 31, 2024. This stellar performance marks the third consecutive quarter where the company has surpassed market expectations.
Revenue surged to a staggering $886 million, reflecting a robust 24% year-on-year growth. This upswing can be attributed primarily to the strong showing of the Offshore Jack-up and Oilfield Services (OFS) segments, which witnessed a respective increase of 51% and 16% compared to the same period in 2023.
ADNOC Drilling’s financial prowess extends beyond revenue generation. EBITDA, a key measure of a company’s operational profitability, also reached a record high of $437 million, representing a substantial 31% year-on-year growth. This translates to a significant expansion of the company’s EBITDA margin to a healthy 49%, solidifying its financial strength.
Net profit mirrored the positive trend, registering a commendable $275 million, up 26% year-on-year. This robust financial performance across all key metrics underscores ADNOC Drilling’s operational excellence and strategic effectiveness.
“Our strong first-quarter performance demonstrates that we have entered a new era for the Company as we go from strength-to-strength, delivering on and beyond the expectations of the market, our customers, and our shareholders, ” remarked Abdulrahman Abdulla Al Seiari, Chief Executive Officer of ADNOC Drilling.
The company’s consistent outperformance has instilled confidence in its future growth trajectory and cash flow generation capabilities. This newfound optimism has translated into a significant move by the Board of Directors. They have recommended an enhanced progressive dividend policy, a strategic decision that aims to further bolster shareholder returns.
ADNOC Drilling’s exceptional first-quarter performance positions the company for a remarkable year ahead. With its unwavering focus on operational efficiency, strategic expansion plans, and commitment to shareholder value, ADNOC Drilling is poised to maintain its position as a leader in the oil and gas drilling services industry.
