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1 FIRST QUARTER 2025 RESULTS PRESENTATION MAY 8, 2025
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2 DISCLAIMER This presentation has been prepared by ADNOC Drilling Company PJSC (the “Company”) based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informational purposes. It should not be construed as an offer to sell or a solicitation of an indication of interest to purchase any equities, security, option, commodity, future, loan or currency including a private sale of shares in the Company (the “Financing Instruments”). It is not targeted to the specific investment objectives, financial situation or particular needs of any recipient. It is not intended to provide the basis for any third-party evaluation of any Financing Instrument or any offering of them and should not be considered as a recommendation that any recipients should subscribe for or purchase any Financing Instruments. The recipient agrees to keep confidential any information contained herein and any other written or oral information otherwise made available in connection with any potential transaction related to this presentation and shall not reproduce, publish, distribute or otherwise divulge such information to any other person(s) other than in accordance with any applicable non-disclosure agreements executed by the recipient with the Company. None of the Company or any of its affiliates or advisors make any representation or warranty as to the fairness, accuracy, adequacy or completeness of the information, the assumptions on which it is based, the reasonableness of any projections or forecasts contained herein or any further information supplied or the suitability of any investment for your purpose. None of the Company or any of its affiliates or advisors, or their respective directors, officers or employees, share any responsibility for any loss, damage or other result arising from your reliance on this information. Each of the Company, its affiliates and advisors therefore disclaim any and all liability relating to this presentation including without limitation any express or implied representations or warranties for statements contained in, and omissions from, the information herein. No recipient of this presentation should rely upon any information contained in this presentation, including but not limited to any historical financial data, forward looking statements, forecasts, projections or predictions. The Company, its affiliates, representatives and advisors are acting solely in the capacity of an arm’s length counterparty and not in the capacity of your financial advisor or fiduciary. Such information is represented as of the date and, if applicable, time indicated and the Company, its affiliates and advisors do not accept any responsibility for updating any such information. Nothing in this presentation should be construed as an advice of, amongst others, legal, tax, regulatory, accounting or investment nature. The recipients should seek and rely upon the advice of its own professionals and other advisors for such matters. This presentation may be recorded, and the Company will assume that by attending this presentation the recipient consents to such recording.
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3 UNIQUE BUSINESS MODEL PROVIDES VISIBILITY & GROWTH ADNOC Drilling inherently resilient business model positions it uniquely to navigate volatile and uncertain environment Revenue underpinned by long-term contracts, which are fully de-risked from spot oil price and market volatility High-quality earnings profile Net income more than doubled from 2021 to 2024, increasing to $1.3bn in 2024, with further growth expected this year Stellar track record of growth EBITDA margin of 51% in 1Q for the conventional business (blended drilling and OFS), the highest in the sector Industry-leading margins Progressive dividend policy with at least 10% annual growth through 2028; $0.87bn (~20 fils) floor for FY2025 Strong dividend visibility New rigs, expansion in OFS and recent JVs (Turnwell and Enersol) presenting strong potential Technology fueling growth Critical enabler of ADNOC’s upstream growth targets, including 5 MMBPD1 by 2027 and gas self-sufficiency by 2030 UAE strategic alignment (1) ADNOC’s target of expanding production capacity to five million barrels per day by 2027.
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4 STRONG FIRST QUARTER 2025 DOUBLE DIGIT YEAR-ON-YEAR GROWTH ACROSS KEY FINANCIAL METRICS 1Q25 Highlights HighlightsTop-line growth 142 rigs +5 rigs YoY +32% YoY Revenue to $1.17bn HighlightsIndustry leading profitability $341mn Net profit, +24% YoY $533mn EBITDA, +22% YoY HighlightsSafety & environment 2,133 GJ/$mn Energy intensity 0.58 TRIR vs target of 0.61 HighlightsStrong OFS performance 134% YoY Revenue growth to $342mn 105 Rigs 57 IDS and 48 Discrete Services Milestones Quarterly Dividend Distributions Transitioning to quarterly dividend payments (more details on slide 15) $152mn Unconventional Revenue +30% sequentially Fourth Enersol Acquisition 95% equity stake in Deep Well Services1 23% IDS Efficiency Improvement In 1Q25 vs 2024 benchmark (1) During the quarter, on March 27, 2025, Enersol completed the acquisition of the 95% equity stake in Deep Well Services (“DWS”). This is the fourth acquisition completed by Enersol since its inception. 1Q25 Highlights
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5 SUSTAINING GROWTH WITH NEW VENUES ENERSOL COMPLETES ACQUISITION OF DWS, UNCONVENTIONAL PROGRESSING AND REGIONAL EXPANSION • Acquired four companies, cumulative total investment of ~$0.8 billion1, approximately half of the total amount committed. • Gordon Technologies, 67.2% stake • NTS Amega Global, 51% stake • EV, 100% stake • DWS, 95% stake • Targeting to announce transactions for the remaining amount throughout 2025. • Acquisitions to support Enersol’s goal of becoming a diversified, tech-centric OFS investment platform. Enersol • ADNOC Drilling’s contract extension will keep the rig in Jordan delivering wells. • Ambitions to expand drilling and OFS activities regionally; potential to enter Kuwait and Oman • Pre-qualified by Kuwait Oil Company (KOC) for drilling, rig and ancillary services. • Pre-qualified for certain services in Oman, initial tender ongoing. • Leveraging our expertise and integrated commercial proposition to sustain growth. Regional Expansion • At quarter end, 34 wells of the 144 well program for Phase 1 have been drilled. • Phase 1 underpinned $1.7 billion contract to unlock the UAE’s world-class unconventional energy resources. • The contract involves drilling 144 oil and gas wells over 2+ years. • Sustaining ADNOC Drilling growth by potentially entering into phase 2 with thousands of wells. Unconventional Resources (1) Four companies acquired and with completed transactions.
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2. OPERATIONAL & FINANCIAL HIGHLIGHTS ADNOC DRILLING
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7 EXPANDING OPERATIONS – MIDDLE EAST’S LARGEST FLEET KEY OPERATIONAL HIGHLIGHTS › Fleet count at 142 rigs, up 4% YoY. Rig availability of 96% in 1Q25. › Two new jack-up rigs which entered at end of 2024 are expected to gradually commence operations in 2Q25. › OFS performed IDS on 57 rigs in 1Q25, compared to 49 rigs in 1Q24. › Discrete services offered on 48 rigs. All in all, OFS was offered to 105 rigs. › 23% overall improvement in 1Q25 IDS drilling efficiency versus 2024 benchmark. › At quarter end, 34 wells of the 144 well program for Phase 1 have been drilled. 92 95 95 45 47 47 137 142 142 1Q24 4Q24 1Q25 Onshore Offshore 1 2 (1) Includes 4 lease-to-own land rigs. (2) In 4Q24, ADNOC Drilling agreed to purchase four lease-to-own land rigs. These rigs remain in the fleet count but are no longer considered leased assets. 48 49 44 85 92 92 1Q24 4Q24 1Q25 Onshore Offshore 1 Commentary 33 38 38 16 19 19 49 57 57 1Q24 4Q24 4Q24 Onshore Offshore 1 117 180 149 22 34 35139 214 184 1Q24 4Q24 1Q25 Onshore Offshore 1 21 Owned Rigs Drilling Average Durations (Days) Wells Drilled IDS Rigs
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8 347 521 474 521 1Q24 1Q25 4Q24 1Q25 437 533 596 533 1Q24 1Q25 4Q24 1Q25 275 341 399 341 1Q24 1Q25 4Q24 1Q25 886 1,170 1,187 1,170 1Q24 1Q25 4Q24 1Q25 FINANCIAL HIGHLIGHTS FIRST QUARTER 2025 OVERVIEW % growth % growth % growth % growth 2,071 1,990 2,117 1Q24 4Q24 1Q25 x Net Debt / LTM EBITDA 1.0x1.3x 1.0x % growth (1) Revenue increased by c.7% sequentially, after adjusting for fewer calendar days in the first quarter and excluding approximately $80 million from 4Q2024, previously disclosed, mainly related to activity phasing in the OFS and certain cost reimbursementsin Onshore. Under the same assumptions, EBITDA and net profit were broadly stable sequentially. See slide 20 for actual sequential % trend. (2) Cash payments for purchase of property and equipment including prepaid delivery payments, excluding CapEx accruals. 32% 110 91 215 91 1Q24 1Q25 4Q24 1Q25 -17% -58% Revenue ($ Million)1 EBITDA ($ Million)1 Net Income ($ Million)1 Cash from Operations ($ Million) CapEx2 ($ Million) Net Debt ($ Million) +7%1 22% ≅ 24% ≅ 50% 10%
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9 SEGMENTAL REVENUE YEAR-ON-YEAR GROWTH ACROSS ALL SEGMENTS % growth % growth % growth Onshore ($ Million) Offshore ($ Million) Oilfield Services ($ Million) 411 494 554 494 1Q24 1Q25 4Q24 1Q25 329 334 320 334 1Q24 1Q25 4Q24 1Q25 146 342 313 342 1Q24 1Q25 4Q24 1Q25 › First quarter revenue increased 20% year-on-year to $494 million from $411 million › Driven by new rigs commencing operations and $30 million contribution from unconventional activity related to land drilling › Onshore revenue decreased 11% sequentially to $494 million from $554 million › Due to positive impact from certain cost reimbursements in 4Q24 › 1Q25 also had two fewer calendar days versus 4Q › Adjusted for above, revenue would have slightly decreased sequentially, driven by the phasing of unconventional › First quarter revenue increased 2% year-on-year to $334 million from $329 million › Mainly due to higher activity from the reactivation of island rigs for Hail and Ghasha project › Revenue in the first quarter of 2025 increased 4% sequentially to $334 million from $320 million › As 4Q had higher major maintenance activity › Two jack-ups added to the fleet in the 4Q24 are expected to contribute to revenue not earlier than the end of the second quarter › First quarter revenue surged 134% to $342 million from $146 million in the same period last year › Driven by $122 million revenue from unconventional business › Increased IDS activity and provision of more discrete services › First quarter revenue increased 9% sequentially to $342 million from $313 million › Driven by higher unconventional and IDS activity 20% -11% 2% 4% 134% 9%
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10 EBITDA GENERATION INDUSTRY-LEADING MARGINS Onshore ($ Million) Oilfield Services ($ Million)Offshore ($ Million) % growth % growth 190 246 285 246 1Q24 1Q25 4Q24 1Q25 29% -14% 213 236 229 236 1Q24 1Q25 4Q24 1Q25 11% 3% % growth 34 51 82 51 1Q24 1Q25 4Q24 1Q25 50% -38% › First quarter EBITDA increased 29% YoY to $246 million, with margin expansion to 50% › Due to higher revenue with operating expenses increasing less proportionately due to cost optimization › EBITDA decreased 14% sequentially to $246 million from $285 million › Due to revenue trend mentioned earlier, impacted by certain cost reimbursements and fewer operational days in 1Q25 › Adjusted for these elements, EBITDA would have decreased slightly sequentially › EBITDA grew 11% year-on-year to $236 million, with a margin expansion of 6 percentage points to 71% › Due to higher revenue and lower operating expenses driven by realized cost optimizations › EBITDA increased 3% sequentially to $236 million from $229 million › Driven by higher revenue › First quarter EBITDA increased 50% year-on-year to $51 million › Due to higher revenue which was driven by the unconventional business and lower margin discrete services activity mix › Supported by positive contribution from joint ventures, Enersol and Turnwell › EBITDA decreased 38% sequentially to $51 million › Excluding the positive phasing from 4Q24, EBITDA would have decreased by single digit, due to more favorable activity mix in 4Q24
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11 GUIDANCE REITERATED, SHOWING RESILIENCE TO VOLATILITY FY2025 AND MEDIUM-TERM GUIDANCE (USD, Billion) FY2025 Guidance Revenue 4.60 – 4.80 Onshore Revenue 1.95 – 2.10 Offshore Revenue (Jack-up & Island)1 1.35 – 1.45 Oilfield 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 Medium-Term Guidance • FY 2026 Revenue expected at ~$5 billion • Around 50% conventional EBITDA margin (conventional drilling margins exceeding 50% and OFS margin in a range of 22-26% medium-term) • Conservative long-term leverage target of up to 2.0x Net Debt / EBITDA • Net working capital as percentage of revenue target of around 12% • Maintenance CapEx of $200 - $250 million per annum (excluding organic and inorganic growth CapEx) • 148+ rigs by 2026 and 151+ by 2028 1 Starting from the first quarter of 2025, the Company has simplified 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 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.
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5. CLOSING REMARKS ADNOC DRILLING
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13 CLOSING REMARKS Resilience in volatility, paving the way for further growth Growth momentum continues through Enersol and Turnwell Final dividend distribution paid to shareholders in April 2025 Double digit year-on-year growth in all key financial metrics Delivering on our ESG agenda by pursuing ambitious goals
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ADNOC DRILLING APPENDIX
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15 TRANSITION INTO QUARTERLY DIVIDEND PAYMENTS RESILIENT BUSINESS MODEL PROVIDES UNPARALLELED VISIBILITY FOR DI STRIBUTIONS The Board of Directors approved dividends to be paid quarterly. The first quarterly dividend payment on 2025 will be for an amount of $217 million (~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 the following three quarterly distributions for 2025, the amount of $217 million will be a floor. As per dividend policy, the Board of Directors, at its discretion, may approve additional dividends over and above the progressive dividend floor after considering free cash flow accretive growth opportunities. QUARTERLY DIVIDEND PAYMENTS
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16 WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS ESG FRAMEWORK & PERFORMANCE HIGHLIGHTS Climate, Emissions and Energy • GHG emission intensity at 0.16 KtCO2e for 1Q25 • Energy intensity at 2,133 GJ/$MM Health, Safety and Security • TRIR at 0.58 for Q125 vs target of 0.61 for FY25 • LTIF at 0.26 for Q125 vs target of 0.20 for FY25 Economic and Social Contribution • Economic performance improved with the increase in number of rigs • In-country value at 40% for 1Q25 vs 60% for FY25 Local Environment • Minimizing impacts through best-in-class environmental management system • Zero spill incidents in 1Q25 Business Sustainability • Integrate risk management across operations and business planning • Strengthen collaboration in environmental protection, conservation and sustainable development Workforce Diversity and Development • Company commitment to gender diversity and development at all levels of the organization • 83 nationalities across the workforce • Emiratization 28.93% for 1Q25 vs target of 28.40%
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17 (246) (330) (259) 2,157 2,295 2,350 160 25 26 2,071 1,990 2,117 1 Q 2 4 4 Q 2 4 1 Q 2 5 Leases Borrowings Cash STRONG CASHFLOW & BALANCE SHEET HEALTHY CASH POSITION WITH AMPLE LIQUIDITY TO POWER RIG FLEET GR OWTH CommentaryNet Cash from Operating Activities ($ Million) Net Debt ($ Million) Cash from Operating Activities › Cash from operating activities stood at $521 million in 1Q25 › Net profit increased 24% YoY driven by higher activity from full operational impact of new rigs › Working capital trend was supported by increased YoY collections Net Debt › Net Debt / EBITDA ratio remained decreased YoY to 1.0x from 1.3x › Cash & cash equivalents stood at $259 million in 1Q25, broadly stable YoY › The four lease to own land rigs from the 1Q24 have been reclassified to just owned rigs. As such, there was an unwinding of lease liability to payables › As of March 31, 2025, the Company’s liquidity headroom (including unutilized syndicated term and revolving facilities) was around $1.16 billion LTM Net Debt / EBITDALTM Net Debt / EBITDA 1.3x 1.0x 1.0x 347 72 110 27 (35) 521 1Q24 Profit Net Working Capital D&A Other 1Q25
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18 CAPEX & WORKING CAPITAL CommentaryCapEx1 ($ Million) Operating Working Capital ($ Million) CapEx › 1Q25 CapEx including prepayments and accruals, amounted to $58 million for 1Q25 › ADNOC Drilling expects CapEx to be in a range between $0.35 - $0.55 billion for 2025, and this only includes maintenance CapEx and new island rigs Operating Working Capital › Working capital as a percentage of revenue stood at around 8% at the end quarter. › The normalized ratio was 12%, adjusted for the impact from phasing of capital expenditure-related payments at quarter-end and for the unwinding of the lease liability to payables at year-end 2024. › The Company expects to maintain a net working capital to revenue ratio broadly stable at around 12% in the medium term. (1) CapEx including prepayments and accruals. 341 322 338 1Q24 4Q24 1Q25 % of LTM revenue 11% 8% 8% 80 58 383 58 1Q24 1Q25 4Q24 1Q25 % revenue 9% 1% 1%32%
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19 AMPLE FINANCIAL HEADROOM FLEXIBILITY FOR GROWTH AND CAPITAL ALLOCATION GUIDANCE Financial Headroom ($ Billion), indicative figures for illustrative purposes only 2.2 4.5 (2.1) 2.3 0.4 FY25 EBITDA Guidance Mid-point Net Debt Potential 1Q25 Net Debt Financial Leverage Headroom Remaining contribution to JV ~ ~ ~ ~ ~
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20 FINANCIAL SUMMARY NM = Not Meaningful (1) Opex includes allocation of G&A expenses and other income; (2) Includes ADNOC Drilling’s 51% of Enersol’s net profit, accounted for in OFS, and the 55% of Turnwell’s net profit from unconventional business, related to both rig operations and OFS (3) EBITDA represents Earnings Before Interest, Tax, Depreciation and Amortization; (4) Conventional EBITDA and Net Profit margins exclude the contribution from the unconventional business. On a quarterly basis, the performance of unconventional can be subject to variations related to service mix, volume of drilling and services provided, etc. (5) Cash payments for purchase of property and equipment including prepaid delivery payments, excluding CapEx accruals (6) Interest bearing liabilities less cash and cash equivalents; (7) Calculated on the weighted average number of shares outstanding, excluding treasury shares (USD, Million) 1Q25 1Q24 YoY 4Q24 QoQ Revenue 1,170 886 32% 1,187 -1% Opex1 (640) (451) 42% (594) 8% Share of profit of joint ventures2 3 2 50% 3 0% EBITDA3 533 437 22% 596 -11% Depreciation and amortization (130) (107) 21% (120) 8% Finance cost-net (29) (28) 4% (32) -9% Taxes (33) (27) 22% (45) -27% Net profit 341 275 24% 399 -15% EBITDA margin 46% 49% -3% 50% -4% Conventional EBITDA margin4 51% 49% 2% 55% -4% Net profit margin 29% 31% -2% 34% -5% Conventional net profit margin4 32% 31% 1% 37% -5% Cash generated from operating activities 521 347 50% 474 10% Capital Expenditure5 (91) (110) -17% (215) -58% Investment in joint ventures (114) (88) NM (62) 84% Free cash flow 319 153 108% 200 60% Total equity 3,752 3,181 18% 3,810 -2% Net debt6 2,117 2,071 2% 1,990 6% Earnings per Share ($ per Share)7 0.0213 0.0172 24% 0.0249 -15% Capital employed 6,321 5,690 11% 6,333 0% Return on capital employed 24% 20% 4% 23% -1% Net debt to LTM EBITDA 1.0 1.3 (0.3) 1.0 - Leverage ratio 36% 39% -3% 34% -2% Return on equity 37% 34% 3% 34% -3%
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21 SEGMENTAL RESULTS (1) Operational expenses including allocated G&A. (2) Underlying EBITDA includes other income. (USD, Million) 1Q25 1Q24 YoY 4Q24 QoQ Revenue 1,170 886 32% 1,187 -1% Onshore 494 411 20% 554 -11% Offshore 334 329 2% 320 4% Oilfield Services (OFS) 342 146 134% 313 9% Total OPEX1 (640) (451) 42% (594) 8% Onshore (248) (221) 12% (270) -8% Offshore (98) (116) -16% (91) 8% Oilfield Services (OFS) (294) (114) 158% (233) 26% EBITDA2 533 437 22% 596 -11% Onshore 246 190 29% 285 -14% Offshore 236 213 11% 229 3% Oilfield Services (OFS) 51 34 50% 82 -38% Net Profit 341 275 24% 399 -15% Onshore 168 130 29% 201 -16% Offshore 146 131 11% 138 6% Oilfield Services (OFS) 27 14 93% 60 -55%
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THANK YOU ADNOC DRILLING www.adnocdrilling.ae ir@adnocdrilling.ae