Earnings Report
ADNOC Drilling Company
1. Company Overview & Earnings Context
ADNOC Drilling Company PJSC reported its Q1 2026 results, delivering its strongest first-quarter performance on record, supported by high fleet utilization, oilfield services growth, and regional expansion.
2. Financial Performance Snapshot
Revenue: AED 4.51B (USD 1.23B) (+5% YoY)
EBITDA: AED 1.94B (USD 527M)
EBITDA margin: 43%
Net profit: AED 1.27B (USD 347M) (+2% YoY)
Net profit margin: 28%
Free cash flow: AED 1.31B (USD 356M) (+12% YoY)
3. Operational Highlights & Key Metrics
Rig fleet (pro-forma): 170 rigs (one of the largest globally)
Fleet in UAE: 140 rigs (92 onshore, 48 offshore)
Regional rigs: 30 rigs (Oman, Kuwait, Bahrain)
Rig availability: 98%
Segment performance:
Onshore revenue: AED 1.75B (USD 477M)
Offshore revenue: AED 1.27B (USD 345M)
Oilfield Services revenue: AED 1.49B (USD 406M) (+19% YoY)
Operational activity:
Wells drilled: 191 (+4% YoY)
IDS rigs: 60 rigs (up from 57 YoY)
Services provided across 113 rigs
Balance sheet & financial strength:
Total assets: AED 30.9B (USD 8.4B)
Total equity: AED 16.3B (USD 4.44B)
Cash & equivalents: AED 1.21B (USD 331M)
Net debt: AED 6.39B (USD 1.74B)
Net debt / EBITDA: 0.8x
4. Key Performance Drivers
High fleet utilization and operational efficiency, supporting revenue growth
Strong expansion in Oilfield Services (OFS), driving higher margins and diversification
Regional expansion through acquisitions (SLB JV, MBPS), increasing fleet scale
Improved financing costs, supporting net profit growth
Strong free cash flow generation, enabling dividend payouts
5. Outlook & Forward Guidance
FY 2026 guidance maintained:
Revenue: ~AED 18.4B (~USD 5B)
EBITDA: AED 8.1–8.4B
Net profit: AED 5.3–5.5B
Free cash flow: AED 4.4–4.8B
Focus on:
Expanding Oilfield Services and IDS capabilities
Regional growth and acquisitions
Maintaining high margins and operational efficiency
6. 🧾 Investor Takeaway
ADNOC Drilling delivered a record Q1 2026 with strong revenue, stable margins, and robust cash flow, supported by fleet expansion, OFS growth, and regional diversification, reinforcing its position as a leading drilling and energy services player with strong earnings visibility.