Adnoc Drilling, the Middle East's biggest drilling company, has reported a more than 21 per cent rise in fourth-quarter profit, owing to newly operational land and offshore rigs.
Net profit for the three months to the end of December rose to $399 million, the company said in a filing on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded. Revenue during the same period rose to $1.19 billion, up 41 per cent compared with the previous year.
Adnoc Drilling had 142 owned rigs by the end of 2024, with three new island rigs on order for 2026. The company expects that to grow to at least 148 rigs by the end of 2026 and at least 151 by the end of 2028.
The results "reinforce Adnoc Drilling’s position as the world’s fastest-growing energy services company, with net profit more than doubling since listing on ADX", said chief executive Abdulrahman Al Seiari.
The company said revenue from its onshore business, its largest, rose 33 per cent year-on-year to $554 million in the latest reported quarter. That was driven by new rigs starting operations and a $48 million boost from unconventional land drilling.
Meanwhile, offshore jack-up revenue rose 17 per cent to $264 million, driven by increased activity and expansion.
Adnoc Drilling’s oilfield services revenue more than doubled to $313 million in the fourth quarter, mainly because of increased activity in integrated drilling services, a one-off gain, and strong performance from its unconventional business.
The company has been strengthening its fast-growing oilfield services business as oil companies in the Middle East increase drilling to meet production targets. Last year, Adnoc Drilling, Schlumberger and Patterson-UTI formed Turnwell, which will focus on the UAE's unconventional oil and gas programme.
Adnoc Drilling also teamed up with Alpha Dhabi Holding to launch Enersol, a tech-focused joint venture, in January last year. It aims to invest $1.5 billion in technology-driven companies in the oilfield services sector by the end of 2025.
For the full year, Adnoc Drilling's revenue climbed 32 per cent to $4.03 billion in 2024, while profit increased 26 per cent to $1.3 billion. This year, the company expects full-year revenue of between $4.6 billion and $4.8 billion and net profit of between $1.35 billion and $1.45 billion.
Adnoc Drilling’s full-year 2026 revenue is projected to be about $5 billion, the company added.