Adnoc Drilling delivers record first-half revenue, profits

ADNOC Drilling Company PJSC delivered record second quarter (2Q) and first half (1H) 2026 revenue, driven by strong Oilfield Services (OFS) growth, disciplined execution and a highly contracted revenue base that provides strong earnings visibility.

The company reported revenue of $2.46 billion, up 4 per cent year-on-year (YoY), while net profit rose 2 percent YoY to $706 million.

Return on Equity (ROE) remained at an industry-leading 34 percent, while dividends declared in 1H 2026 totalled $525 million, supported by strong free cash flow and disciplined capital deployment.

According to a press release issued on Thursday, ADNOC Drilling maintained uninterrupted operations throughout the period, supported by strong execution and high fleet availability. Reflecting this performance and continued confidence in the business, the company reaffirmed its full-year 2026 guidance.

The company said the early deployment of AD-300, its first AI-enabled automated island rig, reinforces its technology-led growth strategy. Together with five additional planned island rigs, it is expected to support future offshore expansion, revenue growth and value creation.

Abdulla Ateya Al Messabi, ADNOC Drilling CEO, said that ADNOC Drilling continues to deliver on what matters most: safe and efficient operations, strategic growth, strong cash generation and increased shareholder returns.

"Growth in OFS is accelerating, while technology and AI are enhancing efficiency, performance and value creation across our operations. Supported by a highly contracted revenue base that provides strong visibility, every well we deliver generates data and insights that help make the next one better, creating a powerful cycle of continuous improvement," he added.

Al Messabi, said that the successful completion of the MBPS acquisition further strengthens the company's regional platform and expands its growth opportunities. These record results reflect the strength of ADNOC Drilling's business model and the disciplined execution by its people.

ADNOC Drilling delivered a record second quarter, with revenue increasing 3 per cent YoY to $1.23 billion and net profit rising 2 per cent to $359 million.

Performance was driven by continued growth in OFS, stable offshore activity and disciplined execution across the business. The company maintained high fleet utilisation and uninterrupted operations throughout the quarter, supporting strong cash generation and reinforcing the resilience and visibility provided by its highly contracted revenue base.

Reflecting this performance, the Board of Directors has approved a dividend of $262.5 million (approximately 6.0 fils per share) for 2Q 2026, expected to be paid in the second half of August to shareholders of record as of 10th August 2026.

Together with the first quarter dividend, cumulative shareholder distributions approved in respect of 2026 stand at $525 million, representing half of ADNOC Drilling's $1.05 billion annual dividend floor, which increases by a minimum of 5 percent annually through at least 2030.

In the Onshore segment, revenue reached $1.03 billion (over 2 percent YoY), supported by operations across the UAE and contributions from MBPS and SLDC, which operate 30 land rigs, mostly in Oman and Kuwait.

In the Offshore (Jack-up & Islands) segment, revenue reached $703 million (over 5 percent YoY), reflecting the contribution from new jack-ups deployed in the second half of 2025, alongside rig conversions from onshore to offshore.

In Oilfield Services (OFS), revenue reached $726 million (over 5 per cent YoY), driven by higher Integrated Drilling Services (IDS) activity, expanded delivery of discrete services and favourable phasing in directional drilling and drilling fluids.

WAM