E-Paper
Sign In
Adnoc Drilling posts record H1 revenue as profit grows 2% to $706 million
Oilfield services and offshore operations support 4% revenue growth to $2.46 billion, while first-half dividends reach $525 million
- PUBLISHED: Thu 30 Jul 2026, 4:29 PM
Adnoc Drilling reported record first-half revenue in 2026, while net profit increased 2 per cent, supported by growth in oilfield services, stable offshore activity and continued regional expansion.
Revenue rose 4 per cent year-on-year to $2.46 billion during the six months ended June 30, while net profit climbed to $706 million, from $692 million a year earlier.
Recommended For You
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Earnings before interest, taxes, depreciation and amortisation increased 1 per cent to $1.08 billion, while the net profit margin remained stable at 29 per cent. Return on equity stood at 34 per cent.
The company maintained uninterrupted operations throughout the period, supported by high fleet utilisation and a largely contracted revenue base. It also reaffirmed its financial guidance for the full year.
During the second quarter, revenue increased 3 per cent to $1.23 billion, while net profit rose 2 per cent to $359 million. EBITDA grew 2 per cent to $557 million.
Dividends reach $525 million
Adnoc Drilling’s board approved a second-quarter dividend of $262.5 million, equivalent to approximately 6 fils per share.
The payment brings total dividends declared for the first half to $525 million, representing half of the company’s annual dividend floor of $1.05 billion.
The second-quarter dividend is expected to be paid during the second half of August to shareholders on record as of August 10.
Adnoc Drilling’s annual dividend floor is set to increase by at least 5 per cent a year through 2030, supported by free cash flow, disciplined capital allocation and contracted revenues.
Abdulla Ateya Al Messabi, Chief Executive Officer of Adnoc Drilling, said the results reflected the strength of the company’s business model and its focus on efficient operations, strategic growth and shareholder returns.
“Growth in oilfield services is accelerating, while technology and AI are enhancing efficiency, performance and value creation across our operations,” he said.
Al Messabi added that the integration of MBPS had strengthened the company’s regional platform and created further expansion opportunities.
Oilfield services drive growth
Oilfield services revenue increased 5 per cent to $726 million, driven by higher integrated drilling services activity and growth in directional drilling, drilling fluids and other specialised services.
The company expanded its slickline fleet and secured a 50 per cent share of Adnoc’s vertical rigless tender during the period.
Offshore revenue also rose 5 per cent to $703 million, reflecting contributions from new jack-up rigs deployed during the second half of 2025 and the conversion of rigs from onshore to offshore operations.
Onshore revenue increased 2 per cent to $1.03 billion, supported by UAE operations and contributions from MBPS and SLDC, which operate 30 land rigs, mainly in Oman and Kuwait.
Adnoc Drilling also drilled more than 100 unconventional wells during the first half while achieving targeted cost efficiencies.
After the end of the quarter, one repurposed land rig began operations in Oman, marking the company’s first organic rig deployment in the Sultanate.
AI-enabled rig starts operations
Adnoc Drilling deployed AD-300, its first automated island rig enabled by artificial intelligence, ahead of schedule in June.
The rig is expected to contribute to revenue from the second half of 2026. It is designed to increase automation and utilisation while reducing drilling times and unit costs.
The company plans to introduce five additional island rigs to support offshore expansion and technology-led productivity improvements.
For 2026, Adnoc Drilling expects revenue of approximately $5 billion, including about $2 billion from onshore activities and $1.5 billion each from offshore operations and oilfield services.
It forecasts EBITDA of between $2.2 billion and $2.3 billion, and net profit of between $1.45 billion and $1.5 billion. Free cash flow is expected to range between $1.2 billion and $1.3 billion, excluding acquisitions.
The company also plans to deploy approximately 70 integrated drilling services rigs by the end of 2026.
