Adnoc Drilling revenue rises 5 per cent to $1.23 billion in Q1

Adnoc Drilling company on Monday announced its financial results for the first quarter (Q1) ended 31st March 2026.

The company delivered its strongest first quarter performance on record in terms of revenue and net income, building on the record‑breaking performance delivered in 2025.

This record start of the year was supported by high fleet activity, disciplined execution, integrated services growth, long-term contract coverage and technology‑led delivery across the fleet.

Revenue reached $1.23 billion, up 5 per cent year-on-year, while net profit rose 2 per cent year-on-year to $0.35 billion. Free cash flow increased 12 per cent year-on-year to $0.36 billion, while return on equity stood at 33 per cent. Dividends totalled $262.5 million.

Performance in the first quarter reflects the resilience of Adnoc Drilling’s business model, underpinned by long-term contracts, high fleet utilisation, and disciplined cost management.

Across all segments, the company maintained operational continuity, stable activity levels and strong cash generation supported by ongoing operational efficiencies, demonstrating its ability to deliver consistent earnings in dynamic market conditions.

Adnoc Drilling experienced no material operational or financial impact in the first quarter of 2026, continuity planning remains robust, with safety, people and asset integrity as the highest priorities.

“Following our strongest year on record in 2025, we have delivered a resilient and disciplined start to 2026,” said Abdulla Ateya Al Messabi, Adnoc Drilling CEO. “This performance reflects the strength of our integrated drilling and energy services model, supported by long-term contracts, high utilisation and consistent execution.”

He added that the company’s workforce remains the centre of this performance through its commitment to the highest safety standards and enhanced operational reliability. He noted that the expanded use of technology is also helping improve efficiency and create value.

“As we progress through 2026, we remain focused on disciplined investment, strong cash generation and sustainable long-term returns for shareholders, while supporting Adnoc’s production capacity objectives,” Al Messabi said.

For 1Q 2026, the Board of Directors has recommended a dividend of $262.5 million (approximately 6 fils per share), expected to be paid in early June to shareholders of record as of 18th May 2026.

The company’s $1.05 billion annual dividend floor for 2026 remains well supported by strong free cash flow generation, long term contract coverage and balance sheet strength.

A far-reaching transformation is underway in Abu Dhabi’s industrial heartland in Ruwais. As Adnoc accelerates delivery of its strategy, including Dhs200 billion ($55 billion) in new project awards for 2026-2028, the company is driving industrial growth across the UAE and advancing the Make it in the Emirates initiative by scaling its downstream investments and strengthening In-Country Value (ICV) across its operations.

The planned project awards announced at the “Make it with Adnoc” forum are creating significant opportunities for local manufacturing and engineering, procurement and construction (EPC) contractors, strengthening domestic supply chains and supporting a more competitive industrial economy.

“Adnoc is scaling its downstream investments to strengthen the UAE’s industrial resilience and advance the Make it in the Emirates initiative,” said Nasser Omair Al Muhairi, CEO of Downstream Industry, Marketing and Trading at Adnoc.

He added, “Across our downstream businesses, we are delivering major projects at scale, including the TA’ZIZ chemicals ecosystem, the Ruwais LNG project and the Borouge 4 expansion, marking the next phase of growth and value creation.”

Through an integrated model spanning feedstock, production, logistics and trading, Adnoc is enhancing supply chain security, enabling a competitive domestic manufacturing sector and reinforcing the UAE’s position as a global hub for energy, chemicals and industry.

These efforts, he said, align with the UAE’s broader industrial strategy to localise critical industrial products, reinforce supply chain resilience and reduce reliance on imports.

Al Muhairi said Adnoc’s existing downstream investments are already delivering tangible impact, supported by a wide range of strategic projects. The Borouge 4 expansion will add 1.4 million tonnes per year of petrochemical capacity, increasing total capacity to 6.4 million tonnes annually.

The project includes the world’s largest Borstar gas-phase reactor and has generated nearly $600 million (Dhs2.2 billion) in local purchase orders.

Elsewhere in Ruwais, phase one of TA’ZIZ, the industrial chemicals joint venture between Adnoc and ADQ, is set to contribute Dhs183 billion ($50 billion) to the UAE economy, creating 20,000 construction jobs and 6,000 permanent roles over the lifetime of the project.

WAM