ADNOC Drilling Company (ADNOCDRILL) Q3 2024 earnings summary

Executive summary

• Achieved record-breaking results in the first nine months and Q3 2024, with revenue up 32% year-over-year to $1,026 million in Q3 and $2,847.3 million for the nine months, and net profit up 30% to $335 million in Q3 and $904.5 million for the period.

• EBITDA rose 34% year-over-year to $510 million in Q3, maintaining a 50% margin, and reached $1,418.8 million for the nine months.

• Rig fleet expanded to 140, up from 124 a year ago, with a target of 142 by year-end and at least 148 by 2026.

• Accelerated growth in unconventional oil and gas through Turnwell JV and Enersol acquisitions, supporting long-term growth.

• Advanced ESG initiatives, including GHG abatement of 18.7 KtCO2e and energy intensity below target.

Financial highlights

• Q3 2024 revenue grew 32% year-on-year to $1,026 million; EBITDA up 34% to $510 million (50% margin); net profit up 30% to $335 million.

• Nine-month revenue was $2,847.3 million, net profit $904.5 million, and EBITDA $1,418.8 million.

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

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

• Cash from operations was $315 million in Q3; cash and cash equivalents at period end were $307.9 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.

• Medium-term guidance targets higher end of revenue growth, with additional investments in Enersol and regional expansion.

• Sequential growth expected in Q4 as two new jackups join the fleet.

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