ADNOC Drilling Company upgraded its guidance for the financial year 2025 and for the medium term after announcing record-breaking performance across revenue, EBITDA, and net profit for the second quarter (Q2) and first half (H1) of 2025.
Fuelled by fleet expansion, rig utilisation and OFS growth, ADNOC Drilling’s revenue surged 30 per cent year-on-year to US$2.37 billion (compared to US$1.821 billion in H1 2024). EBITDA climbed 19 per cent YoY to US$1.08 billion (US$909 million in H1 2024) and net profit was up 21 per cent YoY to US$692 million from US$570 million.
ADNOC Drilling posts record H1 performance
This has led the company to raise its revenue guidance from US$4.6-4.8 billion to US$4.65-4.8 billion and net profit from US$1.35-1.45 billion to US$1.375-1.45 billion. Guidance for net profit margin has been raised from 28-30 per cent to 29-31 per cent.
For its medium-term guidance, the company is expecting FY2026 revenue at around US$5 billion and around 50 per cent conventional EBITDA margin (conventional drilling margins exceeding 50 per cent and OFS margin in a range of 22-26 per cent). Conservative long-term leverage target is up to 2.0x net debt/ EBITDA, and net working capital as percentage of revenue target is around 12 per cent.
Abdulla Ateya Al Messabi, ADNOC Drilling CEO, commented: “Our record first half 2025 results once again demonstrate the strength, resilience, and scalability of ADNOC Drilling. We continue to deliver outstanding financial performance, dependable shareholder returns and disciplined regional expansion, all underpinned by our commitment to deploying AI and advanced technologies.
“With this momentum, we are firmly on track to achieving our full-year growth targets. ADNOC Drilling has consistently demonstrated its ability to grow in any phase of the energy cycle. With high and visible cash flows, growing earnings and strong visibility of future returns, we remain confident in our ability to continue delivering long-term value to our shareholders.”
The Board of Directors approves the US$217 million (approximately 5 fils per share) second quarterly dividend for 2025, which is expected to be paid in the second half of August 2025 to all shareholders of record as of 8 August, 2025. This is the second quarterly dividend year-to-date, and a third one will be announced later in the year.
The company’s onshore business revenue increased by 18 per cent YoY to US$1 billion, mainly due to new rigs commencing operations and a US$79 million contribution from the unconventional business.
Offshore business (Jack-up and Islands) revenue marginally increased 1 per cent to US$671 million, mainly due to reactivation of island rigs. The company’s two new jack-ups, announced previously, will fully contribute to revenue from the third quarter.
Revenue from Oilfield Services (OFS) increased by 127 per cent year-on-year to US$689 million, driven by US$265 million in revenue from unconventional business, coupled with increased integrated drilling services (IDS) activity and additional discrete services.
During the second quarter of the year, ADNOC Drilling entered into an agreement to acquire a 70 per cent stake in SLB’s land drilling rigs business in Kuwait and Oman. Upon completion, the company will gain immediate access to earnings, cashflow and returns accretive growth through two operating land drilling rigs in Kuwait and six in Oman, accelerating its expansion into key GCC geographies.