Latest news with #ADNOCDrilling
Observer
6 hours ago
- Business
- Observer
ADNOC Drilling enters Oman market in $112m deal
Muscat : In a strategic move set to reshape Oman's upstream oilfield services landscape, ADNOC Drilling has acquired a 70% stake in SLB's land drilling rigs business in the Sultanate, marking the UAE-based firm's first operational entry into the Omani market. The deal involves the transfer of six fully operational land rigs in Oman, all under contract with national operators, including Petroleum Development Oman (PDO). The acquisition is part of a wider $112 million agreement between ADNOC Drilling and SLB (formerly Schlumberger), and is expected to close in the first quarter of 2026, pending regulatory approvals. 'This acquisition provides ADNOC Drilling with an immediate footprint in Oman's high-growth drilling market, supported by long-term contracts and a stable operating environment,' the company said in a statement. The rigs are currently deployed in core oilfields that form part of Oman's energy backbone. ADNOC Drilling aims to scale up operations, introduce digital drilling optimisation tools, and enhance rig performance through AI-enabled platforms. The deal aligns with Oman's Vision 2040 goals to attract regional investment, boost in-country value (ICV), and enhance efficiency in hydrocarbon production. It also comes as the Ministry of Energy and Minerals accelerates upstream development, particularly in mature oil blocks requiring enhanced recovery and cost-effective drilling. Industry analysts say ADNOC Drilling's entry is a significant vote of confidence in Oman's upstream sector. With a majority of the assets located in Oman, the acquisition reaffirms the Sultanate's importance as a strategic energy partner in the Gulf. 'Beyond rig deployment, ADNOC Drilling's model includes integrated drilling services, digital workflows, and regional supply chain development—bringing advanced capabilities to Oman's oilfields,' said an energy analyst based in Muscat. The investment is expected to support Omani SMEs and contractors through subcontracting and local procurement. It could also generate new employment opportunities for Omani nationals in rig operations, logistics, and technical services.
Zawya
3 days ago
- Business
- Zawya
ADNOC Drilling to take 70% stake for $112mln in rigs JV with SLB
ADNOC Drilling Co. will acquire a 70% stake for $112 million in a joint venture (JV) with SLB's land drilling rigs business in Kuwait and Oman. The JV comprises eight fully operational land rigs under contract with the respective national oil companies of both countries. The formation of the JV and the acquisition of a 70% stake, is expected in Q1 2026 once regulatory approvals are secured. ADNOC Drilling will fund the transaction through its existing debt capacity. The NYSE-listed SLB, formerly known as Schlumberger Limited, is a technology and services provider to the energy industry. Through this acquisition, ADNOC Drilling will gain immediate access to earnings, cashflow and returns through two operating land drilling rigs in Kuwait and six in Oman. "The headline valuation (3.5x EV/EBITDA) is accretive and we estimate could yield a 15% IRR i.e a 200 bps premium to the top end of the domestic framework," said Oliver G Connor, analyst at Citi Research, in a note. The deal is a first step in meeting the company's broader ambition to reach a 10% market share in the Oman/Kuwait market (i.e 30 rigs) with the flexibility to bring rigs back to the UAE in the long term, Connor added. ADNOC Drilling, which is listed on the ADX, expects to consolidate the newly acquired business in its financial reporting from 2026. (Writing by Brinda Darasha; editing by Seban Scaria)
Zawya
3 days ago
- Business
- Zawya
ADNOC Drilliing to take 70% stake in rigs JV with SLB
ADNOC Drilling Co. will acquire a 70% stake in a joint venture (JV) with SLB's land drilling rigs business in Kuwait and Oman, comprising eight fully operational land rigs under contract with the respective national oil companies of both countries. The formation of the JV and the acquisition of a 70% stake, is expected in Q1 2026 once regulatory approvals are secured. ADNOC Drilling did not disclose the value of the stake. The NYSE-listed SLB, formerly known as Schlumberger Limited, is a technology and services provider to the energy industry. Through this acquisition, ADNOC Drilling will gain immediate access to earnings, cashflow and returns through two operating land drilling rigs in Kuwait and six in Oman. ADNOC Drilling, which is listed on the ADX, expects to consolidate the newly acquired business in its financial reporting from 2026. (Writing by Brinda Darasha; editing by Seban Scaria)
Sharjah 24
5 days ago
- Business
- Sharjah 24
AED 8.4 billion net profit for ADNOC-listed companies
Each of the six companies delivered strong financial results in the first quarter, alongside clear progress on strategic priorities aimed at driving profitable growth. ADNOC Distribution delivered first quarter net profit of $174 million (AEDAED639 million), up 16% year-on-year, and its highest-ever first quarter EBITDA behind record Q1 fuel sales and strong performance in non-fuel retail. The company added 20 new service stations to its network in the quarter, bringing the total to 915 and putting it on track to meet its target of 40-50 new stations by the end of 2025. ADNOC Distribution also reaffirmed its commitment to its dividend policy, aiming for an annual payout of $700 million (AEDAED2.57 billion) equivalent to (20.57 fils per share) or at least 75% of net profit, whichever is higher, through 2028. ADNOC Drilling reported strong first quarter results with revenue up 32% to $1.17 billion (AEDAED4.30 billion) year-on-year (y-o-y), EBITDA up 22% to $533 million (AEDAED1.96 billion) y-o-y and net profit increasing 24% to $341 million (AEDAED1.30 billion) y-o-y. The company also announced new contract awards worth over $2.4 billion (AEDAED8.8 billion) providing unmatched multi-year earnings visibility and adding to its multi-billion-dollar revenue pipeline. Additionally, ADNOC Drilling's Board of Directors approved quarterly dividend distributions, resulting in a payment of $217 million (AED796 million) for the first quarter of 2025. For 2025, ADNOC Drilling expects to deliver revenues between $4.60 - 4.80 billion (AED16.9 – 17.6 billion) and net profit between $1.35 - 1.45 billion (AED4.95 – 5.32 billion). ADNOC Gas reported a net income of $1.27 billion (AED4.7 billion) for Q1 2025, up 7% year-on-year, and EBITDA of $2.16 billion (AED7.9 billion), up 4% year-on-year, driven by increased domestic gas demand and efficient management of the planned shutdown programme, which boosted processing capacity. The company continues to invest to achieve its longer-term EBITDA growth target of over 40% between 2023 and 2029. Significant LNG supply agreements worth $9 billion (AED30.24 billion) were signed with Indian Oil Corporation and JERA Global Markets, and capital expenditures increased by 43% year-on-year. On 13th May, ADNOC Gas was selected for inclusion in the MSCI Emerging Markets Index after meeting the necessary criteria. The inclusion will take effect from 2nd June, and is expected to increase cash inflows by between $300-$500 million (AED1.0 – 1.8 billion) and attract more international institutional investors. ADNOC Logistics & Services plc (ADNOC L&S) reported strong Q1 2025 financial results with a 41% increase in revenue to $1.2 billion (AED4.34 billion) and a 20% rise in EBITDA to $344 million (AED1.26 billion), backed by strong performance across all business segments. The results underpin the resilience of the company's diversified business model where growth from the Integrated Logistics segment offset lower seasonal shipping rates. ADNOC L&S maintained both its 2025 net income and EBITDA guidance and its medium-term guidance, reflecting its continued positive long-term growth and strategic expansion. The Company's 2025 annual dividend is expected to grow 5% in line with its progressive dividend policy. Borouge reported strong Q1 2025 results with net profit of $281 million (AED1.03 billion), driven by year-on-year increases of 10% for sales volumes and 7% for production volumes. Revenue grew by 9% year-on-year to $1.42 billion (AED5.21 billion), with EBITDA of $564 million (AED2.07 billion), maintaining industry-leading margins of 40%. The company also announced it has purchased over 89 million of its own shares since launching its share buyback programme in April, reflecting its strong confidence in its future prospects. Borouge will increase its 2025 annual dividend to 16.2 fils per share, which is expected to be maintained until 2030 by Borouge Group International (BGI) following completion of the BGI transactions that are expected to close in Q1 2026. Fertiglobe announced strong Q1 2025 results, with revenues up 26% and adjusted EBITDA rising 45% year over year. Adjusted net profit would have been up 306% excluding last year's one-off foreign exchange revaluation gain, driven by higher urea prices and operational gains. The company also launched its 'Grow 2030 Strategy' to deliver $1 billion in EBITDA by 2030, focusing on operational excellence, customer proximity product expansion, and disciplined low-carbon ammonia growth. Fertiglobe's optimisation initiatives are enhanced by ADNOC's full support to integrate and optimise $15 - 21 million (AED55.1 – 77.1 million) of the company's fixed costs in addition to $10 million (AED36.7 million) in annual interest savings via direct and indirect financing support. Combined, these would lead to ~13-16% after tax earnings per share growth by the end of 2025. The company also reaffirmed its dividend policy to substantially pay out all excess free cash flows after providing for growth opportunities, and in April initiated a share buyback programme to repurchase up to 2.5% of its outstanding shares.
Arabian Business
5 days ago
- Business
- Arabian Business
ADNOC Drilling awarded $1.15bn, 15-year contract for advanced jack-up rigs
ADNOC Drilling has been awarded a US$1.15 billion, 15-year contract for two AI-powered and automated jack-up rigs by ADNOC Offshore, ensuring long-term revenue and attractive returns. The contract will follow existing agreements, bringing accretive rates. The new rigs represent the latest generation of jack-up rigs and were built at the Lamprell shipyard in Sharjah. This also drives In-Country Value and contributes to the UAE's economic development by fostering local partnerships and prioritising homegrown innovation. The rigs will leverage advanced digitalisation, real-time data analytics and AI as ADNOC Drilling continues to deploy the technology throughout its fleet to improve safety, efficiency and maximise asset value and operational uptime. Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, commented: 'This new contract is a clear vote of confidence in ADNOC Drilling's technical leadership, operational excellence and long-term value creation. By integrating artificial intelligence (AI), automation and digitalisation capabilities, the two new jack-up rigs, our newest and most advanced, will ensure superior efficiency and performance for our client ADNOC Offshore. 'With this contract securing operations until 2040 and beyond, and providing strong, resilient and predictable returns, we are not only reinforcing our role in achieving ADNOC's production capacity milestones but also driving sustainable long-term growth for our shareholders.' Tayba Abdul Rahim Al Hashemi, Chief Executive Officer of ADNOC Offshore, added: 'In the past month, ADNOC Offshore has awarded long-term contracts worth approximately US$3.6 billion to ADNOC Drilling to safely accelerate our production capacity growth plans. 'ADNOC Drilling's advanced fleet of jack-up and island rigs, market leading integrated drilling services and cutting-edge technologies are critical enablers to deliver ADNOC's ambitious strategy. This partnership will help us to sustainably meet the world's growing energy demands.' These long-term contracts demonstrate the resilience, stability and long-term visibility offered by ADNOC Drilling's business model. Multi-year engagements create a solid foundation for recurring revenue and earnings growth. The rigs are expected to commence operations around the end of the second quarter of 2025 and deliver revenue from the second half of 2025 onwards. This will further derisk and reaffirm ADNOC Drilling's current 2025 and medium-term guidance.
