Adnoc Drilling, the largest national drilling company in the Middle East by rig fleet size, has reported a 26 per cent increase in first-quarter profit as its offshore jack-up and oilfield services businesses continue to strengthen.
Net profit for the three months to the end of March rose to $275 million, from $219 million in the same period a year earlier, the company said in a filing on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.
The company’s first-quarter revenue surged 24 per cent year on year to $886 million.
Adnoc Drilling also announced a new dividend policy and said its distribution per share is expected to increase by at least 10 per cent annually from 2024 to 2028.
The company’s board may consider additional dividends depending on growth opportunities and debt levels, it said.
“Confidence in our growth trajectory and cash-flow generation ability going forward has resulted in our board of directors recommending an enhanced progressive dividend policy that will further bolster shareholder returns,” said Adnoc Drilling chief executive Abdulrahman Al Seiari.
“Our multifaceted strategy of enabling Adnoc’s conventional and unconventional production capacity growth to meet the world’s growing demand for energy will further transform the business in 2024 onwards,” he said.
In a separate filing on Monday, Adnoc Drilling said it had been awarded a $1.7 billion contract by parent company Adnoc to provide drilling services for the recovery of unconventional oil and gas resources.
Adnoc Drilling has also set up a company called Turnwell Industries, which will fulfil the contract and explore potential future opportunities in unconventional resources, the company said.
Turnwell will deliver 144 unconventional wells, with a distribution of 50 per cent gas and 50 per cent oil, Mr Al Seiari told The National on Monday.
“It is both that we will be working on … there is a requirement for oil [and] there is requirement for gas. Both will work hand in hand,” he added.
Adnoc, responsible for most of the UAE's crude production, is working to develop its unconventional reserves as it looks to reach an output capacity of five million barrels per day by 2027. It can already produce up to 4.85 million bpd.
Abu Dhabi’s unconventional recoverable oil resources are estimated at 22 billion barrels of very light and sweet crude, comparable with Adnoc’s flagship lower-carbon Murban grade.
Unconventional resources, also key to the UAE's goal of becoming gas self-sufficient by 2030, require advanced extraction methods, such as those used in the US shale industry.
Adnoc Drilling said it would use advanced technology, specifically artificial intelligence, in various aspects of its operations, including smart drilling design, completions engineering and production solutions.
Last year, Adnoc Drilling and Alpha Dhabi Holding, a unit of Abu Dhabi's International Holding Company, set up a joint venture to invest up to $1.5 billion to acquire technology-enabled companies in the oilfield services and energy sectors.
New company
The Adnoc subsidiary, which plans to drill “thousands” of unconventional wells in the second phase of the drilling programme, also signed a term sheet agreement with Schlumberger, the world’s largest oilfield services company, and Patterson-UTI, to form a strategic partnership.
The Adnoc Drilling chief said the partnership with the US-based companies would help “jump-start” the company to where others in the world are with regards to unconventional drilling.
“We have the rigs, we have the services. To be more efficient, you need the new technologies [and] new practices … the US has been doing it for the last two decades,” Mr Al Seiari said.
Advancements in oil and gas technology, particularly in shale exploration, have taken the US to the top global oil producer spot.
The introduction of directional drilling and fracking led to America becoming a net petroleum exporter in 2020 for the first time since at least 1949.
Turnwell, the new subsidiary, will operate as an independent company with its own management team and the company's headquarters or offices would likely be located closer to oil and gas operations, Mr Al Seiari said.
The Adnoc executive did not rule out a potential listing for the company in the future.
“I don't see why not … it will be one of those companies which we believe will be quite successful and to the domain of unconventional [drilling],” Mr Al Seiari said.
“But, it's too early to talk about it at this time.”
Revenue boost
Adnoc Drilling said on Monday that revenue from its onshore business, the largest, rose by 16 per cent on an annual basis to $411 million in the latest reported quarter.
Meanwhile, revenue from the offshore jack-up segment jumped by 51 per cent to $278 million in the first three months of 2024, mainly due to higher activity from additional jack-up rigs, the company said.
Revenue from oilfield services increased by 16 per cent year on year to $146 million in the first quarter, supported by higher demand for drilling fluids and directional drilling.
GULF MEN'S LEAGUE
Pool A Dubai Hurricanes, Bahrain, Dubai Exiles, Dubai Tigers 2
Pool B Abu Dhabi Harlequins, Jebel Ali Dragons, Dubai Knights Eagles, Dubai Tigers
Opening fixtures
Thursday, December 5
6.40pm, Pitch 8, Abu Dhabi Harlequins v Dubai Knights Eagles
7pm, Pitch 2, Jebel Ali Dragons v Dubai Tigers
7pm, Pitch 4, Dubai Hurricanes v Dubai Exiles
7pm, Pitch 5, Bahrain v Dubai Eagles 2
Recent winners
2018 Dubai Hurricanes
2017 Dubai Exiles
2016 Abu Dhabi Harlequins
2015 Abu Dhabi Harlequins
2014 Abu Dhabi Harlequins
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
UAE currency: the story behind the money in your pockets
Company Profile
Company name: Yeepeey
Started: Soft launch in November, 2020
Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani
Based: Dubai
Industry: E-grocery
Initial investment: $150,000
Future plan: Raise $1.5m and enter Saudi Arabia next year
Results
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LA LIGA FIXTURES
Friday Valladolid v Osasuna (Kick-off midnight UAE)
Saturday Valencia v Athletic Bilbao (5pm), Getafe v Sevilla (7.15pm), Huesca v Alaves (9.30pm), Real Madrid v Atletico Madrid (midnight)
Sunday Real Sociedad v Eibar (5pm), Real Betis v Villarreal (7.15pm), Elche v Granada (9.30pm), Barcelona v Levante (midnight)
Monday Celta Vigo v Cadiz (midnight)
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
'Avengers: Infinity War'
Dir: The Russo Brothers
Starring: Chris Evans, Chris Pratt, Tom Holland, Robert Downey Junior, Scarlett Johansson, Elizabeth Olsen
Four stars
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
MATCH INFO
Everton v Tottenham, Sunday, 8.30pm (UAE)
Match is live on BeIN Sports
FIXTURES
Monday, January 28
Iran v Japan, Hazza bin Zayed Stadium (6pm)
Tuesday, January 29
UAEv Qatar, Mohamed Bin Zayed Stadium (6pm)
Friday, February 1
Final, Zayed Sports City Stadium (6pm)
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Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
The specs
Engine: 3.0-litre flat-six twin-turbocharged
Transmission: eight-speed PDK automatic
Power: 445bhp
Torque: 530Nm
Price: Dh474,600
On Sale: Now
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Profile box
Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Company profile
Company: Verity
Date started: May 2021
Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif
Based: Dubai
Sector: FinTech
Size: four team members
Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000
Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors
The specs
Engine: Turbocharged four-cylinder 2.7-litre
Power: 325hp
Torque: 500Nm
Transmission: 10-speed automatic
Price: From Dh189,700
On sale: now
More from Rashmee Roshan Lall
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Company%20Profile
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All or Nothing
Amazon Prime
Four stars
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Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
The%20specs
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Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
