Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
ADNOC Drilling reported a 24% year-on-year increase in net profit to $341 million in the first quarter of 2025, on the back of robust operational performance and rising demand across all business segments. Revenue surged 32% to $1.17 billion, while EBITDA rose 22% to $533 million.
The company delivered earnings per share of $0.021 for the quarter, up from $0.017 a year earlier. Cash from operations jumped 50% to $521 million.
Segment-wise, onshore operations generated $494 million in revenue, up 20% year-on-year, supported by new rigs and growth in the unconventional business. Offshore revenue, including jack-up and island rigs, increased 2% to $334 million, while oilfield services saw revenue more than double to $342 million, driven by higher integrated drilling services activity and unconventional project contributions.
Commenting on the results, CEO Abdulrahman Abdulla Al Seiari said: “The first quarter of 2025 has been more than just a strong start for ADNOC Drilling, it has demonstrated our financial resilience and laid the foundation for another year of significant growth. We are progressing at pace on our strategic priorities, expanding our rig fleet, scaling our oilfield services offering and advancing our AI and digital capabilities.”
On the returns front, shareholders approved a final 2024 dividend of $394 million in March, bringing the total annual dividend for last year to $788 million—up 10% from 2023. Starting this year, ADNOC Drilling will transition to quarterly payouts. The Board has approved a Q1 2025 dividend of $217 million, payable on or around May 28.
Looking ahead, the company reaffirmed its full-year 2025 guidance. Revenue is expected to be in the range of $4.6–$4.8 billion, EBITDA between $2.15–$2.3 billion, and net profit between $1.35–$1.45 billion. ADNOC Drilling also aims to maintain a dividend floor of $870 million for the year, supported by a strong pipeline of contracts and sustained demand across domestic and regional markets.
Last month, ADNOC Drilling’s Chief Financial Officer Youssef Salem told Aletihad that his company was on track to exceed the guidance set for this year.
ADNOC Drilling is accelerating growth through its innovation-focused joint ventures—Enersol, which expanded its AI-driven drilling technology portfolio with the acquisition of DWS, and Turnwell, which has significantly reduced unconventional well delivery times in the UAE using advanced AI and digital tools.
ADNOC Drilling, listed on the Abu Dhabi Securities Exchange (ADX), is the largest drilling and integrated drilling services company in the Middle East by fleet size. The company is a critical link in ADNOC’s upstream business.
