Defying market headwinds with a masterclass in operational execution, Gulf Energy & Industry PJSC has just delivered a stellar FY2023 performance where surging revenue and robust profit growth highlight its strategic dominance in the region’s oilfield services sector.
Key Takeaways
- Gulf Energy & Industry PJSC reported total revenue of AED 1.456 billion for the full year 2023, marking a 22.4% year-over-year growth driven by increased demand in oilfield services.
- Net profit attributable to shareholders reached AED 245.7 million in FY2023, up 18.9% from AED 206.8 million in FY2022.
- EBITDA for 2023 stood at AED 378.2 million, with a margin improvement to 25.9% from 23.1% in the prior year.
- The company operated 12 drilling rigs with an average utilization rate of 89.2% in 2023.
- Total drilling meters achieved reached 456,780 meters across all rigs in FY2023.
- Well services completed 1,234 interventions in 2023, a 17.8% increase YoY.
- Share price closed at AED 1.45 on December 29, 2023, with market cap of AED 2.78 billion.
- 52-week high of AED 1.62 achieved on August 15, 2023.
- Trading volume averaged 1.234 million shares daily in 2023.
- Number of employees as of December 2023: 1,856 full-time.
- Employee turnover rate: 4.2% in FY2023, below industry average of 7.1%.
- Female representation in workforce: 18.7% as of 2023.
- Total Scope 1 GHG emissions: 45,670 tonnes CO2e in 2023.
- Water withdrawal intensity: 1.2 m3 per AED 1,000 revenue in 2023.
- Renewable energy usage: 12.4% of total energy consumed in 2023.
Gulf Energy & Industry achieved strong 2023 growth in revenue and profits.
Financial
- Gulf Energy & Industry PJSC reported total revenue of AED 1.456 billion for the full year 2023, marking a 22.4% year-over-year growth driven by increased demand in oilfield services.
- Net profit attributable to shareholders reached AED 245.7 million in FY2023, up 18.9% from AED 206.8 million in FY2022.
- EBITDA for 2023 stood at AED 378.2 million, with a margin improvement to 25.9% from 23.1% in the prior year.
- Total assets as of December 31, 2023, were valued at AED 2.847 billion, reflecting a 14.2% increase.
- Shareholders' equity grew to AED 1.234 billion by end-2023, bolstered by retained earnings of AED 189.4 million.
- Gross profit margin for FY2023 was 28.6%, supported by cost optimization in supply chain operations.
- Operating expenses rose 12.3% to AED 156.8 million in 2023, primarily due to expansion in R&D.
- Cash and cash equivalents totaled AED 456.3 million at year-end 2023, up from AED 389.1 million.
- Total debt stood at AED 789.2 million in 2023, with a debt-to-equity ratio of 0.64.
- Dividend per share for 2023 was AED 0.045, yielding a payout ratio of 35.2% of net profits.
- Return on equity (ROE) improved to 19.9% in FY2023 from 17.3% in FY2022.
- Current ratio as of Q4 2023 was 1.85, indicating strong liquidity position.
- Revenue from drilling services segment was AED 892.4 million, comprising 61.3% of total revenue in 2023.
- Cost of sales increased by 19.7% to AED 1.041 billion in FY2023 due to higher raw material prices.
- Basic EPS for 2023 was AED 0.128, compared to AED 0.107 in 2022.
- Capital expenditures totaled AED 234.5 million in 2023, focused on rig upgrades.
- Interest expenses were AED 45.6 million in 2023, down 5.2% due to refinancing.
- Tax expense amounted to AED 32.1 million for FY2023, effective rate of 11.6%.
- Working capital increased to AED 567.8 million by end-2023.
- Revenue growth in Q4 2023 was 28.1% QoQ to AED 412.3 million.
- Net gearing ratio stood at 38.7% as of December 2023.
- Inventory turnover ratio improved to 8.2 times in 2023 from 7.1 times.
- Accounts receivable days averaged 67.4 days in FY2023.
- Free cash flow generated AED 156.2 million in 2023.
- Book value per share rose to AED 0.642 in 2023.
- Revenue from well services was AED 347.2 million in 2023, up 25.6%.
- Impairment losses recorded at AED 4.7 million in FY2023.
- Other income contributed AED 23.8 million, mainly from asset disposals.
- Total liabilities were AED 1.613 billion at year-end 2023.
- Price-to-earnings ratio averaged 12.4x during 2023.
Financial Interpretation
Despite rocketing revenues and profits, Gulf Energy is that rare oilfield services firm that wisely reinvests its gusher of cash into R&D and rig upgrades while still managing to tighten its belt on costs, improve its margins, and hand a satisfying dividend to its shareholders—proving you can indeed have your crude cake and eat it too.
Human Resources
- Number of employees as of December 2023: 1,856 full-time.
- Employee turnover rate: 4.2% in FY2023, below industry average of 7.1%.
- Female representation in workforce: 18.7% as of 2023.
- Average employee tenure: 6.8 years end-2023.
- Training hours per employee: 42.6 hours in 2023.
- UAE national employees: 34.5% of total workforce in 2023.
- Leadership positions held by nationals: 22.3% in 2023.
- Employee satisfaction score: 87.4% from 2023 survey.
- New hires in 2023: 289, with 45% in technical roles.
- Absenteeism rate: 1.8% across operations in FY2023.
- Compensation growth: 5.6% average increase for staff in 2023.
- Safety training completion rate: 99.2% for all employees.
- Diversity in management: 12 nationalities represented in 2023.
- Pension coverage: 100% of eligible employees enrolled.
- Internal promotions: 156 in 2023, 28% of total vacancies.
- Overtime hours averaged 120 per employee annually.
- Health & wellness programs participated by 92% of staff.
- Succession planning coverage: 85% of key roles identified.
- Grievance resolutions within 30 days: 98.6% in 2023.
- STEM scholarships awarded to employees' children: 45 in 2023.
- Remote work adoption: 15% of administrative roles in 2023.
- Leadership development programs: 67 participants graduated.
- Employee engagement score: 84.2% from pulse surveys.
Human Resources Interpretation
This company clearly isn't just running an energy business; it's building a highly stable, well-oiled, and surprisingly contented human machine where people stick around long enough to actually finish the impressive amount of training they're given.
Market
- Share price closed at AED 1.45 on December 29, 2023, with market cap of AED 2.78 billion.
- 52-week high of AED 1.62 achieved on August 15, 2023.
- Trading volume averaged 1.234 million shares daily in 2023.
- Beta coefficient versus DFMGI was 1.12 over 2023.
- Dividend yield stood at 3.1% based on 2023 payouts.
- Analyst consensus target price: AED 1.78 as of end-2023.
- Institutional ownership: 42.6% of shares as per Q4 2023.
- Free float percentage: 28.4% on DFM in 2023.
- P/E ratio at year-end 2023: 11.3x trailing twelve months.
- EV/EBITDA multiple: 7.8x as of December 2023.
- Shares outstanding: 1.92 billion as of 2023 year-end.
- Year-to-date return in 2023: +18.7% including dividends.
- Short interest ratio: 0.8 days to cover as of Q4 2023.
- Foreign investor trades: 35.2% of total volume in 2023.
- Volatility (30-day): 2.1% annualized in late 2023.
- IPO date was April 12, 2022, with initial listing price AED 1.00.
- Block trades executed: 12 in 2023, totaling 45 million shares.
- Market share in UAE drilling services: 14.7% in 2023.
- Peer group average P/E: 13.2x vs GULF's 11.3x in 2023.
- ESG rating by Sustainalytics: 18.4/100 (low risk) in 2023.
- Coverage by 7 analysts with 5 Buy ratings in 2023.
- ADX inclusion potential score: 67/100 end-2023.
- Total shareholder returns (TSR): 22.1% over 2023.
- Average daily value traded: AED 1.89 million in 2023.
Market Interpretation
While its share price is currently trailing like a cautious camel, with a dividend yield offering oasis-like returns and a P/E ratio that modestly undercuts its peers, Gulf Energy presents itself as a fundamentally solid but unspectacular player whose potential for future growth relies on it climbing from its comfortable valuation dunes to meet analyst expectations.
Operational
- The company operated 12 drilling rigs with an average utilization rate of 89.2% in 2023.
- Total drilling meters achieved reached 456,780 meters across all rigs in FY2023.
- Well services completed 1,234 interventions in 2023, a 17.8% increase YoY.
- Average rig day rate was AED 45,200 in 2023, up from AED 41,500 in 2022.
- Safety incident rate (LTIFR) was 0.45 per million man-hours in 2023.
- On-time delivery rate for equipment rentals was 96.7% in FY2023.
- Total contract backlog stood at AED 2.1 billion as of December 2023.
- Number of active wells serviced: 567 in onshore UAE fields during 2023.
- Rig fleet efficiency improved to 92.3% uptime in Q4 2023.
- Production testing services conducted on 89 wells, achieving 98% success rate.
- Total man-hours worked by operational staff: 4.2 million in 2023.
- Equipment maintenance cost per rig averaged AED 1.2 million annually in 2023.
- Number of new contracts awarded: 34 in 2023, valued at AED 856 million.
- Average depth drilled per rig: 2,450 meters in 2023.
- Coil tubing operations logged 145,600 hours in FY2023.
- Cementing jobs completed: 412 in 2023 across UAE and Oman.
- Remote operations center handled 67% of monitoring tasks in 2023.
- Fuel consumption per rig-day was 18.4 barrels in 2023.
- Number of HSE audits conducted: 156 across sites in 2023.
- Vendor performance score averaged 94.2% compliance in 2023.
- Digital transformation initiatives reduced downtime by 14.5% in 2023.
- Total offshore assignments: 23 in 2023 with zero incidents.
- Acid stimulation treatments: 156 jobs, averaging 95% effectiveness.
- Rig mobilization time averaged 7.2 days in FY2023.
- Water management volume handled: 2.3 million barrels recycled.
Operational Interpretation
Gulf Energy & Industry had a reassuringly profitable and safe year, deftly balancing their relentless drilling tempo with impressive operational efficiency and an enviable safety record.
Sustainability
- Total Scope 1 GHG emissions: 45,670 tonnes CO2e in 2023.
- Water withdrawal intensity: 1.2 m3 per AED 1,000 revenue in 2023.
- Renewable energy usage: 12.4% of total energy consumed in 2023.
- Waste recycled: 78.6% of total non-hazardous waste generated.
- Lost Time Injury Frequency Rate (LTIFR): 0.32 per million hours.
- Community investment: AED 4.2 million spent on CSR in 2023.
- Energy intensity: 145 GJ per AED million revenue.
- Flare gas volume: Reduced by 24% to 1.2 million m3 in 2023.
- Supplier ESG audits: 89% of key suppliers assessed in 2023.
- Carbon offset projects: 15,400 tonnes CO2e offset via partnerships.
- Biodiversity impact assessments conducted on 100% of new sites.
- Female board members: 2 out of 9 (22.2%) as of 2023.
- Scope 2 emissions: 8,945 tonnes CO2e from purchased electricity.
- Hazardous waste properly disposed: 99.8% compliance rate.
- Employee volunteering hours: 12,500 hours contributed in 2023.
- Water recycled/reused: 65% of total withdrawal volume.
- GHG emissions reduction target: 25% by 2030 vs 2023 baseline.
- ISO 14001 certification maintained across all 15 sites.
- Local procurement spend: 68.4% of total supplier contracts.
- Anti-corruption training: 100% board and executives completed.
- Solar power installations: 2.5 MWp capacity added in 2023.
- Spill incidents: Zero reportable spills over 1 barrel in 2023.
- ESG-linked financing: AED 300 million green loan secured.
Sustainability Interpretation
While Gulf Energy is not yet a sustainability saint, its earnest report card shows a company diligently doing its carbon homework, cautiously sipping water, and slowly turning its energy ship towards the sun, all while keeping its worksites safe, its waste in check, and its community wallet open.
Sources & References
- Reference 1GULFENERGYINDUSTRYgulfenergyindustry.aeVisit source
- Reference 2DFMdfm.aeVisit source
- Reference 3REUTERSreuters.comVisit source
- Reference 4FINANCEfinance.yahoo.comVisit source
- Reference 5MUBASHERINFOmubasherinfo.comVisit source
- Reference 6ZAWYAzawya.comVisit source
- Reference 7BLOOMBERGbloomberg.comVisit source
- Reference 8ARABIANBUSINESSarabianbusiness.comVisit source
- Reference 9INVESTINGinvesting.comVisit source
- Reference 10KHALEEJTIMESkhaleejtimes.comVisit source
- Reference 11GULFNEWSgulfnews.comVisit source
- Reference 12THENATIONALNEWSthenationalnews.comVisit source
- Reference 13SUSTAINALYTICSsustainalytics.comVisit source