Page 13 - MEOG Week 45 2021

MEOG NEWS IN BRIEF MEOG

quarter 2021 revenue was $61 million, up 45% significant production capacity growth targets OIL
year-on-year. and help the UAE achieve gas self-sufficiency.
Oilfield Services (OFS): Maintained a ADNOC will remain a committed, long-term China’s Iran oil purchases
robust growth trajectory, driven by higher majority shareholder in ADNOC Drilling as
activity as the segment continued its the Company continues on its exciting growth rebound on lower prices,
expansion. Revenue for the nine-month trajectory while delivering attractive returns
period increased 50% year-on-year to $231 for shareholders.” fresh quotas
million. Third quarter 2021 revenue was $74 Abdulrahman Abdullah Al Seiari, Chief
million, up 32% year-on-year. Executive Officer of ADNOC Drilling, said: China’s imports of Iranian oil have held above
EBITDA for the nine-month period “Coming shortly after our landmark IPO, half a million barrels per day on average for
was $785 million, up 11% year-on-year these very strong financial and operational the last three months, traders and ship-
and beating expectations, demonstrating results underpin an ambitious growth plan tracking firms said, as buyers judge that
sustained resilience throughout the period, that is built on the quality and diligence of our getting crude at cheap prices outweighs any
despite Covid-19 related disruptions people, who have worked tirelessly to achieve risks from busting U.S. sanctions.
continuing through the period. ADNOC safe and efficient operations while at the same Chinese purchases of Iranian crude have
Drilling’s EBITDA margin of 50% reflects the time growing our business. continued this year despite the sanctions
Company’s commitment and continued focus “As we look to the final quarter and to that, if enforced, would allow Washington to
on driving efficiency throughout the business, 2022, we see our operations returning to cut off those who violate them from the U.S.
highlighted by its industry-leading fleet normal post- pandemic and we expect to economy. President Joe Biden’s administration
utilization rate of 95.5%2 as of September, 30 continue to make significant progress in has so far chosen not to enforce the sanctions
2021. ADNOC Drilling continued to deliver the execution of our long-term strategy. against Chinese individuals and companies
highly attractive cash flow generation during Having positioned our business to build on amid negotiations that could revive a 2015
the period, with cash from operations1 the trust that our new shareholders have nuclear deal that would allow Iran to sell its oil
increasing 15% year-on-year to $823 million, placed in us, our immediate focus will be to openly again.
equating to 105% of EBITDA. meet the robust financial targets we have set, After a dip in June and July from a record
Capital expenditure for the nine-month while maintaining operational excellence high in May as buyers ran low on import
period increased four-fold on a year-on- for our everyday activities. These targets are permits, Chinese independent refiners
year basis, to $454 million in 2021. These underpinned by ambitious sustainability embraced Iran’s cheaper crude again as the
investments will support the ambitious goals, as we strive to achieve industry-leading government released fresh quotas, the traders
growth of the Company’s OFS expansion ESG performance.” and ship-tracking sources said.
operations and rig acquisitions, with these ADNOC Drilling remains active in a “Deep discounts of Iranian oil and the
new rigs expected to commence operations number of mega-tenders in Abu Dhabi, new import quotas supported demand from
in 2022. while also pursuing the further expansion of Chinese independent refiners,” said Emma
His Excellency Dr. Sultan Ahmed Al Jaber, its discrete services portfolio and increased Li, tanker tracker Vortexa Analytics’ China
UAE Minister of Industry and Advanced market share in the OFS segment. If awarded, market analyst, adding that strong Chinese
Technology, ADNOC Managing Director these tenders will expand the Company’s refining margins also lent support.
and Group CEO, and Chairman of ADNOC portfolio outside of the Integrated Drilling Iranian oil shipments, now worth some
Drilling, said: “With double-digit revenue Services (IDS) segment, with awards expected $1.3 billion a month and the bulk of which go
growth, ADNOC Drilling has demonstrated during 2022. to China, provide key revenue for Tehran. Iran
exceptional financial performance and In October, following the success of and world powers are set to resume talks on
commercial resilience, reflected in a very its heavily oversubscribed IPO on ADX, Nov. 29 to restore the nuclear deal and lift U.S.
robust third-quarter. These impressive results ADNOC Drilling was included in three of sanctions on the sales.
follow ADNOC Drilling’s record ADX listing FTSE Russell’s globally recognized indices Iranian arrivals into China hit 660,000
in early October, and were well above market including the FTSE Emerging Index, FTSE bpd in August and 545,000 bpd in September,
forecasts. Global Large Cap Index and FTSE All-World before dropping back to 470,000 bpd in
“ADNOC Drilling sits at the heart of Index. October, according to data from Vortexa
ADNOC’s ambitious growth plans and is ADNOC Analytics.
critical in enabling ADNOC to achieve its REUTERS

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