ADNOC Drilling Aims for Strong Growth with Fleet Expansion, Revenue Targets

(MENAFN) Following a robust performance in the first quarter, ADNOC Drilling, the Middle East's largest national drilling company and sole drilling partner to Abu Dhabi National Oil Co. (ADNOC), has outlined an ambitious expansion strategy. With the goal of achieving a 20 percent year-on-year growth in revenue for this year, ADNOC Drilling has launched a fleet expansion program to support ADNOC in reaching its production targets.

In an exclusive interview with Arab News, Abdulrahman Abdulla Al-Seiari, CEO of ADNOC Drilling, revealed that the company increased its fleet by 16 rigs in 2022, bringing the total to 115 rigs. Building upon this progress, ADNOC Drilling plans to add an additional 27 rigs by 2024, reaching a total fleet size of 142 rigs. Al-Seiari emphasized that the expansion of the fleet will lead to increased revenue for the company.

Discussing the financial projections for the remainder of the year, Al-Seiari disclosed that ADNOC Drilling anticipates total revenue between USD3 billion and USD3.2 billion in 2023. The company has guided the market to expect EBITDA in the range of USD1.35 billion to USD1.5 billion, with a margin of 45 percent to 47 percent. Furthermore, ADNOC Drilling forecasts record net income between USD850 million and USD1 billion.

These projections come on the heels of a strong first-quarter performance, with ADNOC Drilling reporting a remarkable 19 percent year-on-year growth in revenue, amounting to USD716 million. The company's net income also saw a 25 percent increase year-on-year, reaching USD219 million. Al-Seiari attributes this success to ADNOC's accelerated production capacity growth, which directly translates into increased drilling activity.

ADNOC Drilling's expansion strategy, marked by fleet growth and a focus on service offerings, has proven to be a winning formula. With a robust fleet expansion plan in place and a strong financial outlook, ADNOC Drilling is well-positioned to support ADNOC's production goals and capitalize on the growing drilling activity in the region.



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