Abu Dhabi's ADNOC Drilling reported on Feb. 13 a rise of 33% in 2022 net profit, with revenue boosted by its onshore and oilfield services businesses.
Net profit for 2022 was $802 million, up from $604 million in the previous year. Revenue increased to $2.67 billion in 2022 from $2.27 billion in 2021.
In a regulatory filing, the company said its results were largely driven by new rigs entering its operational fleet, now consisting of 115 rigs.
The company also presented strong guidance for 2023, with revenue projected at between $3 billion and $3.2 billion, representing year-on-year growth of up to 20%. It is expecting record net profit in 2023 of $850 million to $1 billion in the same period, it said.
ADNOC Drilling's CFO Esa Ikaheimonen said in a post-earnings call that the forecasts are underpinned by ADNOC Group's plans to bring forward its 5 MMbbl/d oil production capacity expansion to 2027 from a previous target of 2030, to meet rising global energy demand.
"That's really what's underpinning it because we as a drilling company are on a critical path in terms of achievement of those goals," Ikaheimonen told Reuters.
The United Arab Emirates' plan to move towards gas self-sufficiency is another factor, Ikaheimonen said, with ADNOC Drilling currently operating two rigs drilling unconventional wells which "is expected to increase over time significantly."
ADNOC Drilling listed on the Abu Dhabi bourse in 2021 after ADNOC, its majority shareholder, raised $1.1 billion from investors through a public share-sale.
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