ADNOC Drilling Company

1. Company Overview & Earnings Context

ADNOC Drilling is the UAE's largest drilling and integrated drilling services company, providing onshore, offshore, and oilfield services across conventional and unconventional energy operations. During H1 2026, the company continued expanding its regional footprint through the integration of SLDC and MBPS while growing its drilling fleet and advancing AI-enabled drilling technologies.

For H1 2026, ADNOC Drilling delivered record financial results, driven by higher drilling activity, contributions from recent acquisitions, fleet expansion, and continued growth in oilfield services. The company also maintained its progressive dividend policy while reaffirming its full-year guidance.

2. Financial Performance Snapshot

• Revenue: USD 2.46 Billion

• Gross Profit: USD 893 Million

• Profit Before Tax: USD 775 Million

• Income Tax: USD 69 Million

• Net Profit: USD 706 Million

• Earnings Per Share (EPS): USD 0.0439

Compared with H1 2025:

• Revenue increased 4% to USD 2.46 billion.

• Gross profit increased to USD 893 million.

• Profit before tax increased 2% to USD 775 million.

• Net profit increased 2% to USD 706 million.

• Earnings per share increased to USD 0.0439.

3. Operational Highlights & Key Metrics

• Total Assets: USD 8.60 Billion

• Total Equity: USD 4.29 Billion

• Rig Fleet: 171 rigs

• Domestic Rig Fleet: 141 rigs (92 onshore, 49 offshore)

• Regional Fleet: 30 rigs

• Return on Equity (ROE): 34%

• Return on Capital Employed (ROCE): 23%

• EBITDA: USD 1.08 Billion

• EBITDA Margin: 44%

• Net Profit Margin: 29%

• Free Cash Flow: USD 653 Million

• Net Debt to LTM EBITDA: 1.0x

• Leverage Ratio: 33%

• Board approved a USD 262.5 million dividend (approximately 6.0 fils per share) for Q2 2026.

4. Key Performance Drivers

ADNOC Drilling's performance was supported by the successful integration of SLDC and MBPS, which added regional drilling capacity in Oman and Kuwait, alongside the contribution from additional jack-up rigs and continued expansion of oilfield services. Revenue growth also benefited from higher drilling activity and increased service offerings, while AI-enabled rigs and operational efficiencies supported profitability. Free cash flow moderated due to higher inventory levels and acquisition-related integration, but the company maintained strong margins and a solid balance sheet.

5. Outlook & Forward Guidance

Management reaffirmed its FY2026 revenue guidance of approximately USD 5 billion and Oilfield Services revenue guidance of USD 1.5 billion. ADNOC Drilling expects continued growth from regional expansion, increasing oilfield service penetration, additional AI-enabled rig deployments, and its expanding unconventional business while maintaining its progressive dividend policy.

6. Investor Takeaway

ADNOC Drilling delivered another record first half, combining revenue growth, strong profitability, expanding regional operations, and disciplined capital allocation. Backed by a growing fleet, AI-driven innovation, strong free cash flow generation, and a progressive dividend policy, the company remains well positioned for continued long-term growth.