ADNOC Drilling Company (ADNOCDRILL) Q3 2024 earnings summary

Executive summary

• Achieved record-breaking results for the first nine months of 2024, with revenue of USD 2,847.3 million and net profit of USD 904.5 million, reflecting strong financial and operational performance and significant progress on ESG and sustainability targets.

• Q3 2024 revenue up 32% year-on-year to $1,026 million, net profit up 30% to $335 million, and EBITDA up 34% to $510 million, maintaining a 50% margin.

• Fleet expanded to 140 rigs, up from 124 a year ago, with 11 new land rigs added in 9M24 and a target of at least 148 rigs by 2026.

• Accelerated unconventional oil and gas well program through Turnwell JV, with 144 wells in Phase 1 and successful early delivery, supported by Enersol acquisitions.

• ESG initiatives advanced, with GHG abatement at 18.7 KtCO2e, energy intensity below target, and all 16 hybrid rigs operational.

Financial highlights

• Q3 2024 revenue grew 32% year-on-year to over $1 billion; EBITDA up 34% to $510 million, with a 50% margin; net profit increased 30% to $335 million.

• For the nine months ended September 2024, revenue was USD 2,847.3 million, net profit USD 904.5 million, and EBITDA USD 1,418.8 million.

• Interim dividend of $394 million distributed for H1 2024, up 10% year-on-year; total dividends for the period reached USD 752.5 million.

• Cash from operations was $315 million in Q3, with cash and cash equivalents at $308 million at period end.

• CapEx for Q3 was $197 million, with full-year 2024 CapEx expected at $800–$900 million.

Outlook and guidance

• Upgraded 2024 guidance: revenue $3.8–$3.9 billion, EBITDA $1.85–$1.95 billion, net income $1.2–$1.3 billion, with EBITDA margin expected at 49–51%.

• CapEx for 2024 expected at $800–$900 million, with maintenance CapEx post-2024 at $200–$250 million annually.

• Sequential growth expected in Q4 as two new jackups join the fleet; medium-term guidance targets high end of revenue growth.

• Unsatisfied performance obligations of USD 82.7 million expected to be recognized as revenue in the next period.

• Conservative long-term leverage target maintained at up to 2.0x Net Debt/EBITDA.