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ADNOC Drilling Co., a subsidiary of Abu Dhabi's state oil company ADNOC, reported a Q2 2023 net profit of $228 million, 12% higher year-on-year (YoY), driven by its onshore and oilfield services segments.
The net profit exactly matched analysts’ mean estimate of $228 million, according to data compiler, Refinitiv.
Revenue for the quarter grew 8% YoY to $724 million, the company said on Friday in a bourse filing on the Abu Dhabi Securities Exchange (ADX).
For H1 2023, ADNOC Drilling made a net profit of $446 million, 18% higher on year.
H1 revenue rose 13% YoY to $1.4 billion driven by the oilfield services and offshore jack-up segments which increased by 45% and 31% respectively.
It said it remains firmly on track to deliver its fiscal year 2023 guidance of revenue between $3-3.2 billion and net profit of between $850 million and $1 billion.
The company said the interim dividend for 2023, which will be soon announced, is expected to increase by a minimum of 5% versus last year. For full-year 2022 it paid a total dividend of $682.5 million.
Citi Research said in a note on Friday that with 18 rigs acquired in H1-23, ADNOC Drilling remains well on track to reach its target of 142 rigs by end 2024.
"In our view, the offshore drilling market outlook remains buoyant and ADNOC Drilling continues to offer unique exposure to this as well as upside through its unconventional programme."
(Reporting by Brinda Darasha; editing by Seban Scaria)
