ADNOC Drilling Company (ADNOCDRILL) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of $4.03 billion in 2024, up 32% year-on-year, with net profit rising 26% to $1.3 billion, driven by fleet expansion and new business lines.

• Rig fleet expanded to 142 with 13 rigs added, supporting ADNOC's growth and operational excellence.

• Completed four technology-enabled oilfield service acquisitions and invested in joint ventures, including Enersol and Turnwell.

• Board proposed a final 2024 dividend of $394 million, with total dividends for the year up 10% to $788 million.

• Progressed ESG and decarbonization initiatives, with all 16 new-built hybrid rigs operational and improved safety metrics.

Financial highlights

• Full-year revenue reached $4.03 billion, up 32%; Q4 revenue was $1.19 billion, up 16% year-on-year.

• Full-year EBITDA was $2.02 billion with a 50% margin; Q4 EBITDA reached $596 million.

• Net profit for 2024 was $1.3 billion, up 26%; earnings per share rose to $0.0815.

• Cash from operations totaled $1.65 billion; free cash flow more than doubled to $639 million.

• Capex for 2024 was $761 million, supporting fleet and technology expansion.

Outlook and guidance

• 2025 revenue guidance: $4.6–$4.8 billion, with EBITDA of $2.15–$2.3 billion and net profit of $1.35–$1.45 billion.

• Capex for 2025 guided at $350–$550 million, with flexibility for M&A potentially exceeding $1 billion.

• Free cash flow guidance for 2025: $1.3–$1.6 billion, supporting a minimum dividend of $870 million.

• Medium-term revenue target of $5 billion in 2026, with fleet expected to reach at least 148 rigs by 2026.

• Net working capital to revenue ratio targeted at 12%; leverage target remains below 2.0x.