- Adnoc Drilling reported a rise in the first quarter’s profit to $275 million, exceeding estimates of $268.8 million, a year on year (y/y) increase of 26%.
- The company’s income experienced similar growth, at $886 million, a 24% y/y increase. This surpasses the $879.3 million estimate.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) landed at $437 million, a notable 31% y/y increase, outplaying the $425 million estimate.
- Earnings per share (EPS) achieved a figure of 1.70c compared to 1.40c on a y/y basis.
- Adnoc Drilling board recommends a new progressive dividend policy with expectations for it to grow by at least 10% annually over the next five years.
- The increased revenue is attributed to offshore jack-up and oilfield services segments and increased onshore activity from the delivery of new rigs.
- A recent boom in offshore jack-up revenue comes from heightened activity with additional jack-up rigs.
- The board might consider extra dividends above the progressive dividend policy, considering growth opportunities and keeping a net debt/EBITDA ratio up to 2x, excluding any transformative mergers and acquisitions.
- The company intends to offer dividends semi-annually with a final dividend distributed during the first half and an interim dividend in the second half of the fiscal year.
- Adnoc Drilling has inked a new contract to deliver 144 unconventional oil and gas wells.
- An impressive $1.7 billion contract has been procured from Adnoc, ensuring the provision of drilling and associated services for unconventional energy resources recovery.
- Adnoc Drilling has signed a term sheet with Schlumberger Middle East and Patterson-UTI International Holdings to enter into a partnership.
- The company, growing in reputation, has been rated favorably with twelve buys, two holds, and no sells.
A look at ADNOC Drilling PJSC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
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ADNOC Drilling PJSC, the drilling company that offers services for conventional and unconventional reservoirs globally, has received a positive long-term outlook according to Smartkarma Smart Scores. With a solid Growth score of 4 and Momentum score of 4, the company appears to be positioned for steady development and upward movement in the future. This suggests a potential for expansion and increasing market activity for ADNOC Drilling PJSC.
Although the Value and Resilience scores are somewhat lower at 2, the company’s Dividend score stands at a respectable 3, indicating a moderate level of dividend yield. Investors may find ADNOC Drilling PJSC an attractive option for potential growth and income generation as it continues to provide essential drilling and well construction services across various terrains.
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Summary: ADNOC Drilling Company P.J.S.C. operates as a drilling company that offers drilling and well construction services for conventional and unconventional reservoirs globally.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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