ADNOC Drilling Company (ADNOCDRILL) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 rose 32% year-on-year to $1.17 billion, with EBITDA up 22% to $533 million and net profit up 24% to $341 million.

• Record 51% EBITDA margin and 32% net income margin in conventional business, driving 37% RoE and 24% ROCE.

• Rig fleet expanded to 142, with 96% rig availability and strong safety performance (TRIR 0.58 vs. target 0.61).

• Strategic growth pillars include Enersol acquisitions, unconventional resources via Turnwell, and regional expansion into Jordan, Oman, and Kuwait.

• Board approved transition to quarterly dividends, with $217 million per quarter as a floor for 2025.

Financial highlights

• Q1 2025 revenue: $1.17 billion (+32% YoY); EBITDA: $533 million (+22% YoY, 46% margin); net profit: $341 million (+24% YoY, 29% margin).

• Cash from operations reached $521 million (+50% YoY); CapEx for Q1 was $91 million, down 17% YoY.

• Net debt at $2.1 billion; net debt/EBITDA ratio at 1x.

• Oilfield services revenue: $342 million (+134% YoY); onshore revenue: $494 million (+20% YoY); offshore revenue: $334 million (+2% YoY).

• Earnings per share rose 24% YoY to $0.0213.

Outlook and guidance

• FY2025 revenue guidance: $4.6–$4.8 billion; EBITDA: $2.15–$2.3 billion (margin 46–48%); net profit: $1.35–$1.45 billion (margin 28–30%).

• CapEx for 2025 guided at $350–$550 million, with higher spend in H2 due to new island rigs.

• Dividend floor for FY2025 set at $0.87 billion, with at least 10% annual growth through 2028.

• Medium-term: FY2026 revenue expected around $5 billion; 148+ rigs by 2026, 151+ by 2028.

• Conservative leverage target of up to 2.0x Net Debt/EBITDA.