Photo Credit : WAM
ADNOC Drilling has reported record financial results for the first half of 2026, driven by continued expansion in its Oilfield Services (OFS) business, strong operational execution and a highly contracted revenue base that continues to provide long-term earnings visibility.
The company posted first-half revenue of $2.46 billion, marking a 4 percent year-on-year increase, while net profit climbed 2 percent to $706 million. Return on Equity (ROE) remained at an industry-leading 34 percent, highlighting the company’s strong financial performance.
ADNOC Drilling also declared $525 million in dividends during the first six months of 2026, backed by healthy free cash flow and disciplined capital allocation.
The company said it maintained uninterrupted operations throughout the period, supported by high fleet availability and efficient project execution. Based on this performance, ADNOC Drilling reaffirmed its full-year 2026 financial guidance.
A key milestone during the period was the early deployment of AD-300, the company’s first AI-enabled automated island rig. The rig forms part of ADNOC Drilling’s technology-driven expansion strategy, with five additional automated island rigs planned to support future offshore developments and long-term revenue growth.
Abdulla Ateya Al Messabi, CEO of ADNOC Drilling, said the company continues to focus on safe operations, strategic growth, strong cash generation and delivering greater value to shareholders.
He said Oilfield Services remains the fastest-growing part of the business, while artificial intelligence and advanced technologies are improving operational efficiency and performance. He added that the company’s highly contracted revenue base provides strong earnings visibility, with operational data from each well helping optimise future drilling performance.
Al Messabi also highlighted the successful completion of the MBPS acquisition, saying it strengthens ADNOC Drilling’s regional footprint and creates additional growth opportunities across the Middle East.
Second-quarter performance remains strong
For the second quarter alone, ADNOC Drilling generated $1.23 billion in revenue, up 3 percent year-on-year, while net profit increased 2 percent to $359 million.
The company attributed the performance to continued growth in Oilfield Services, stable offshore activity and disciplined execution across all business segments. High fleet utilisation and uninterrupted operations also supported strong cash generation.
The Board of Directors approved a second-quarter dividend of $262.5 million, equivalent to approximately 6.0 fils per share, which is expected to be paid in the second half of August to shareholders on record as of 10 August 2026.
Combined with the first-quarter payment, total approved shareholder distributions for 2026 now stand at $525 million, representing half of the company’s annual dividend floor of $1.05 billion, which is set to increase by at least 5 percent annually through 2030.
Business segments deliver steady growth
The Onshore business generated $1.03 billion in revenue, an increase of more than 2 percent from a year earlier. Growth was supported by UAE operations and contributions from MBPS and SLDC, which together operate 30 land rigs across Oman and Kuwait.
The Offshore (Jack-up & Islands) segment reported $703 million in revenue, up more than 5 percent, reflecting the deployment of additional jack-up rigs during the second half of 2025 and the conversion of selected onshore rigs for offshore operations.
Meanwhile, Oilfield Services (OFS) generated $726 million in revenue, also rising by more than 5 percent, driven by higher Integrated Drilling Services activity, expanded delivery of specialised services, and stronger demand for directional drilling and drilling fluids.
