Revenue increases 32% year-on-year to $1.17 billion, EBITDA grows 22% to $533 million and net profit rises 24% to $341 million reflecting resilient financial performance
Conventional business delivers record 51% EBITDA margin and 32% net income margin, driving global industry-best 37% RoE and 24% ROC
Acquisition of DWS by ADNOC Drilling’s Enersol accelerates AI-driven energy services, and breakthrough in unconventionals well delivery times by ADNOC Drilling’s Turnwell enhances resource recovery
Robust multi-billion-dollar revenue pipeline and new contract wins secure unmatched multi-year earnings visibility
Board of Directors approves quarterly dividend distributions, resulting in $217 million 1Q 2025 payment
Abu Dhabi, UAE – May 08, 2025: ADNOC Drilling Company PJSC (“ADNOC Drilling” or the “Company”) (ADX symbol: ADNOCDRILL / ISIN: AEA007301012) announced today strong financial results for the first quarter of 2025 (1Q 2025), building on its growth trajectory, demonstrating its financial resilience and laying the foundation for another year of growth and success.
Key First Quarter Highlights
ADNOC Drilling’s growth momentum continues in 2025, fueled by sustained strong demand for its services, a relentless focus on operational excellence and strategic investments in fleet expansion, integrated services, artificial intelligence (AI), advanced technologies and international expansion.
Abdulrahman Abdulla Al Seiari, ADNOC Drilling CEO, said: “The first quarter of 2025 has been more than just a strong start for ADNOC Drilling, it has demonstrated our financial resilience and laid the foundation for another year of significant growth. We are progressing at pace on our strategic priorities, expanding our rig fleet, scaling our oilfield services offering and advancing our AI and digital capabilities.
“As we secure new contracts and expand into strategic markets, our scale and commitment to innovation continue to enhance efficiency and performance across the business. With a robust revenue pipeline, sustained demand, growing international interest and unparalleled visibility of future earnings, ADNOC Drilling is well positioned to deliver sustainable growth and value for our shareholders. We remain committed to playing a leading role in the advancement of energy services in our domestic market and beyond.”
Strong Segmental Growth
| USD Millions | 1Q 25 | 1Q 24 | % Change |
| Revenue | 1,170 | 886 | 32% |
| EBITDA | 533 | 437 | 22% |
| Net Profit | 341 | 275 | 24% |
| Earnings per share (USD/share) | 0.021 | 0.017 | 24% |
| Capital Expenditure | -91 | -110 | -17% |
| Cash from Operations | 521 | 347 | 50% |
| EBITDA Margin | 46% | 49% | -3% |
| EBITDA Margin Conventional | 51% | 49% | 2% |
| Net Profit Margin | 29% | 31% | -2% |
| Net Profit Margin Conventional | 32% | 31% | 1% |
Final 2024 Dividend Distribution and Transition to Quarterly Dividend Distributions
On March 18, 2025, at the Annual General Meeting, Company shareholders approved all the agenda items, including the distribution of the final cash dividend payment for the year ended December 31, 2024. The final shareholder-approved cash dividend payment for 2024 amounted to $394 million (c.9.05 fils per share) and has been made in April 2025. This has brought the total 2024 dividend to $788 million (c.18.1 fils per share), representing a 10% year-on-year increase versus 2023.
On May 7, 2025, the Board of Directors approved dividends to be paid quarterly. The first quarterly dividend payment of 2025 will be for an amount of $217 million (approx. 5 fils per share) and is expected to be paid on or around May 28, 2025, to all shareholders of record as of May 19, 2025. For each of the following three quarterly distributions for 2025, the amount of $217 million will be a floor.
As per dividend policy, the Board of Directors, at its discretion, may approve additional dividends over and above the progressive dividend floor after considering free cash flow accretive growth opportunities.
Technology and Innovation: Enersol and Turnwell Set the Pace
ADNOC Drilling’s growth is underpinned by its bold innovation strategy, executed through its two next-generation joint ventures:
| USD Billions (unless otherwise stated) | % Change |
|---|---|
| Revenue | 4.60 – 4.80 |
| Onshore Revenue | 1.95 – 2.10 |
| Offshore Revenue (Jack-up & Islands)1 | 1.35 – 1.45 |
| Oilfields Services Revenue | 1.10 – 1.25 |
| EBITDA | 2.15 – 2.30 |
| EBITDA Margin | 46% – 48% |
| Net Profit | 1.35 – 1.45 |
| Net Profit Margin | 28% – 30% |
| CapEx(Excluding M&A)2 | 0.35 – 0.55 |
| FCF(excluding M&A)3 | 1.30 – 1.60 |
| Leverage target | <2.0x |
| Dividend floor(+10% vs 2024) | 0.87 |
ADNOC Drilling’s medium-term guidance is as follows:
Activity Subsequent to the End of the First Quarter
In April 2025, ADNOC Drilling announced it has received a letter of award for a $1.63 billion, five-year contract for Integrated Drilling Services (IDS) from ADNOC Offshore. This contract supports the growing Oilfield Services segment, and its economic impact is already included in the current 2025 and 2026 revenue guidance, underpinning the visibility of future revenue and in support of our financial targets.
In May 2025, ADNOC Drilling was awarded an $806 million long-term contract for three newbuild island rigs by ADNOC Offshore to support expanding operations at the offshore Zakum development project. These three rigs are in addition to three ordered in July 2024, reinforcing ADNOC Drilling’s path to reach 151+ rigs by 2028.
Webcast and conference call
ADNOC Drilling will host the earnings webcast and conference call, followed by a Q&A session, for investors and analysts on Thursday, May 8, 2025, at 16:00pm UAE time. The call will be hosted by Abdulrahman Abdulla Al Seiari, ADNOC Drilling CEO and Youssef Salem, ADNOC Drilling CFO. Interested parties are invited to join the call by clicking here.
A replay and transcript will be made available following the call, accessible from the Investor Relations section of ADNOC Drilling’s website here.
1 Starting from the first quarter of 2025, the Company plans to simplify its reporting structure by reducing the number of segments from four to three. The results of Offshore Jack-Up and Offshore Island will be combined under a new segment called Offshore
2 Maintenance CapEx + CapEx for island rigs. It does not consider CapEx for potential additional land rigs and cash outflows associated with M&A
3 Free Cash flow calculated as EBITDA – CapEx – Working Capital – taxes. It does not consider cash outflows associated with M&A
Release Details
May 08, 2025
Abu Dhabi, UAE