Dubai: ADNOC Drilling posted its strongest financial performance on record, with revenue up 22% to $4.9 billion and net profit rising 11% to $1.45 billion. Growth was supported by high rig utilization, long-term contracts, and expanding oilfield services across Abu Dhabi and the wider region. Free cash flow surged 62% to $1.47 billion, while return on equity reached 35%, reflecting strong operating leverage and disciplined capital deployment.
Operational efficiency drives earnings
Management attributed the strong performance to technology adoption across the fleet and execution gains across integrated drilling and services, which helped translate higher activity into increased earnings and cash flow. EBITDA rose 9% to $2.2 billion, while total dividends for the year reached $1 billion, reinforcing ADNOC Drilling’s position among the region’s highest-returning energy service operators.
Dividend visibility boosts investor appeal
The board recommended a fourth-quarter dividend of $250 million, equivalent to approximately 5.7 fils per share, payable in April. Total distributions for 2025 therefore reach $1 billion, with a dividend floor of $1.05 billion set for 2026, reflecting confidence in cash generation and balance sheet strength. Planned minimum cumulative dividends of around $6.8 billion between 2025 and 2030 provide long-term visibility for investors, representing roughly Dh1.56 per share and implying a yield above 28% based on market data from February 11, 2026.
Segment growth driven by services and offshore
Oilfield Services led the expansion, with revenue rising 80% to $1.46 billion, driven by higher activity levels and increased integrated drilling services work. Onshore operations generated $2.04 billion, up 8%, supported by new rigs and growing demand for unconventional drilling. Offshore revenue grew 6% to $1.40 billion, reflecting rig conversions and the addition of new jack-ups entering service during the year.
Contract wins and regional expansion
ADNOC Drilling secured more than $5 billion in contract awards during 2025, extending revenue visibility through 2040, strengthening backlog coverage, and supporting long-term planning. Regional expansion progressed through a joint venture in Kuwait and Oman and a pending acquisition of an 80% stake in MBPS, subject to regulatory approvals.
Technology and scale reshape operations
Operational milestones underscored efficiency gains across the fleet, including the world’s longest well at 55,000 feet and a regional drilling record of 5,332 feet in 24 hours. Predictive maintenance systems, automation, and AI-driven workflows are being deployed to improve uptime, reduce costs, and enhance safety standards.
Sustainability and workforce initiatives included solar integration across camps, mangrove planting projects, and investment programs for employees. Technology platform Enersol expanded digital solutions to reduce emissions and boost productivity, while Turnwell operations delivered unconventional wells performing on par with leading US developments.
Positive outlook supported by utilisation and contracts
Management expects 2026 performance to strengthen further, driven by high rig utilisation, operating leverage, and efficiency gains from digital deployment. Potential upside includes additional integrated drilling services awards, expanded oilfield services, and continued progress in ADNOC’s upstream development plans. Six new island rigs scheduled for delivery between 2026 and 2028 will expand capacity, with the company targeting roughly 70 integrated drilling services rigs in operation by the end of 2026.
Domestic conventional operations are expected to maintain EBITDA margins near 50% while oilfield services margins are projected in a range of 23% to 26% over the medium term. Annual maintenance capital expenditure is projected around $250 million, allowing the company to sustain growth while maintaining strong cash returns and balance sheet flexibility.
