ADNOC Drilling Co., a subsidiary of Abu Dhabi's state oil company ADNOC, said it would pay higher dividend as net profit for the second quarter of 2022 rose 19% year-on-year (YoY) to $204 million on the back of higher onshore and oilfield revenues.

Revenue for the quarter grew 11% YoY to $668 million, driven primarily by the onshore and oilfield services segments, the company said on Tuesday in a bourse filing on the Abu Dhabi Securities Exchange (ADX).

EBITDA in Q2 2022 increased 7% to $300 million, providing a margin of 45.7%.

For the first half of the year, the drilling company posted a net profit of $379 million, up 34% compared to the same period last year. Revenue was $702 million, up 24%, which was "largely driven by new rigs joining the fleet", the company said.

ADNOC Drilling added eight rigs during the period. The total value of these acquisitions formed part of the company’s three-year capital expenditure guidance of $2.5-3 billion, "as well as its strategic roadmap to grow the fleet to 122 rigs by the end of 2024".

The company's board of directors announced an increase in the interim half-year dividend of 5% to $341 million, 7.83 fils per ordinary share, payable in the fourth quarter. The growth in dividend "reflects ADNOC Drilling’s strong and visible future cash flow, while providing ample headroom to invest in long-term future growth", it added.

On July 27, ADNOC Drilling was awarded $2 billion in contracts for offshore drilling units and drilling services by ADNOC. On August 5, the company was awarded another set of contracts to the value of an additional $3.4 billion by Abu Dhabi's oil giant.

(Writing by Brinda Darasha; editing by Cleofe Maceda)