Adnoc Drilling has announced plans to grow its integrated drilling fleet even further in 2024, with total rig count expected to reach 142.

Each new advanced specification rig joining the fleet will use leading AI technologies to improve operational efficiency and boost revenues.

The oilfield services (OFS) segment is expected to experience continued, significant growth as the company brings operational efficiency, through the deployment of advanced technologies, to its customers and extracts more value from every well delivered.

In 2023, Adnoc Drilling advanced its international growth strategy by mobilising its first ever rig outside of the UAE.

The company signed its first international contract to deliver an integrated drilling services campaign for Jordan’s Ministry of Energy and Mineral Resources.

Along with its activities in Jordan, Adnoc Drilling is now targetting other opportunities in the GCC region.

Abdulrahman Abdulla Al Seiari, Chief Executive Officer of Adnoc Drilling, said: "2024 will be a landmark year for Adnoc Drilling. Our core integrated drilling services business is complemented by the establishment of Enersol, our strategic partnership with Alpha Dhabi, that will support the adoption of AI, digitization and advanced technology solutions to drive growth, value and efficiency. The year will also see us extend our presence further into the region, building on our entry to the Jordan market last year. We have always been ambitious at Adnoc Drilling and 2024 will be the year when we will realise those ambitions."

On the back of strong 2023 results, Adnoc Drilling announced full year 2024 and medium-term guidance, reaffirming growth.

The company continues to expect its owned rig count to total 142, including the four new lease-to-own land rigs, by the end of 2024.

It expects total revenue between $3.60 and $3.80 billion, EBITDA of $1.70 billion - $1.90 billion, with a margin range of 48-50 per cent and net profit of $1.05 billion - $1.25 billion, with a margin range of 30 per cent-33 per cent.

Moreover, Adnoc Drilling expects capex to be between $750 million-$950 million.

Adnoc Drilling’s medium-term guidance includes revenue CAGR in the 12 per cent-16 per cent range from 2023 base; EBITDA Margins around 50 per cent with drilling margins exceeding 50 per cent and OFS margin in a range of 22-26 per cent.

It also expects to see maintenance capex post-2024 in the range of $200-$250 million per annum.

Al Seiari said: "In 2023 we made excellent progress towards our strategic priorities, while supporting our customers to achieve theirs. Our industry leading HSE performance supported the delivery of record results in 2023. The company’s performance is testament to the hard work and dedication of our diverse and highly skilled people, and I thank them for their continued committment.

Furthermore, during 2023, Adnoc Drilling established an innovative strategic partnership with Alpha Dhabi Holding.

The joint venture (JV), which is known as Enersol, is targeting value-accretive, technology-enabled oilfield and energy service businesses globally that will drive future growth through the adoption of artificial intelligence (AI) and digitization across the OFS and energy value chain.

The JV, of which the company owns 51 per cent, underpins Adnoc Drilling’s investment and expansion strategy by co-investing up to $1.5 billion.

STRONG BALANCE SHEET

Last month, Adnoc Drilling announced its final cash dividend for the year ending December 31, 2023.

It approved a final dividend of $358 million, bringing the total dividend to $717 million (16.45 fils per share), 5 per cent year-on-year increase from 2022.

The dividend will be paid on or around April 3, 2024 to all shareholders of record as at March 21, 2024.

Adnoc Drilling reiterates its commitment to a dividend policy that is progressive, reflecting robust underlying cash flow, with an annual distribution that is expected to grow by at least 5 per cent per annum on a dividend per share basis over the next three years (2024-2026).