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.
Recommended Reading
Devon Energy Expands Williston Footprint With $5B Grayson Mill Deal
2024-07-08 - Oklahoma City-based Devon Energy is growing its Williston Basin footprint with a $5 billion cash-and-stock acquisition from Grayson Mill Energy, an EnCap portfolio company.
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
SLB OneSubsea JV to Kickstart North Sea Development
2024-05-07 - SLB OneSubsea, a joint venture including SLB and Subsea7, have been awarded a contract by OKEA that will develop the Bestla Project offshore Norway.
Blankenship, Regens: More Demand, More M&A, More Regs
2024-05-23 - In 2024, the oil and gas industry is dealing with higher interest rates, armed conflicts in Europe and the Middle East, rising material costs, a decrease in Tier 1 acreage and new policies and laws.
VAALCO Reports Increased Reserves After Svenska Deal
2024-07-16 - VAALCO acquired Swedish E&P Svenska’s 27.39% non-operated working interest in the deepwater Baobab Field in Block CI-40, offshore Côte d’Ivoire.