ADNOC Drilling reported stronger first-quarter earnings, supported by growth in its offshore drilling activity and broader oilfield services segment.
Abu Dhabi: ADNOC Drilling, listed on the Abu Dhabi Securities Exchange, said it experienced no material operational or financial impact from regional developments in the first quarter of 2026, as it posted its strongest first-quarter performance on record.
The company added that its continuity planning remained robust, with safety, workforce protection, and asset integrity continuing to be its top priorities during the period.
ADNOC Drilling reported first-quarter revenue of $1.23 billion, marking a 5% year-on-year increase, while net profit rose 2% to $347 million. Free cash flow also climbed 12% to $356 million during the same period.
ADNOC Drilling approved a first-quarter dividend of $262.5 million, which is expected to be paid in early June to shareholders on record as of May 18.
The company’s results come against a backdrop of continued uncertainty in global energy markets, particularly around shipping routes in the Gulf region. Tensions linked to the broader US–Israel–Iran conflict and disruption risks around the Strait of Hormuz have added volatility concerns for oil and logistics flows.
The strait is a critical global energy chokepoint, and any disruption there can quickly influence shipping costs, insurance premiums, and oil prices worldwide.
What worked for ADNOC Drilling in the period was a combination of strong operational execution and a stable business model.
The company highlighted high rig utilisation, meaning a large share of its drilling rigs remained actively deployed, which directly supports revenue generation. It also benefited from long-term contracts, which provide predictable income streams and reduce exposure to short-term oil price fluctuations.
Another key driver was the continued expansion of integrated drilling and oilfield services, which helped diversify and strengthen its core operations beyond traditional drilling.
Chief executive Abdulla Ateya Al Messabi said the results reflect the strength of the company’s integrated energy services model, supported by consistent execution and efficiency. He also emphasized the role of employees in maintaining safe, reliable operations while adopting technologies aimed at improving productivity and value creation.
ADNOC Drilling said it now operates a record fleet of 170 rigs across the GCC, positioning it as the largest drilling fleet in the Middle East and North Africa region and one of the biggest globally.
ADNOC Drilling reported strong segment performance across both its onshore and offshore businesses during the quarter.
Its onshore drilling business generated $477 million in revenue, supported by eight land rigs operating in Oman and Kuwait. This expansion followed ADNOC Drilling’s acquisition of a 70% stake in SLDC, a joint venture with Schlumberger (now SLB), which helped strengthen its regional footprint.
The offshore segment brought in $345 million in revenue, aided by two new jack-up rigs that began operations in the second half of 2025. The company also reported the arrival of two AI-enabled island rigs from China during the quarter, which are expected to gradually enter service later in the year and further enhance operational efficiency.
ADNOC Drilling reported that its oilfield services division generated $406 million in revenue, supported by stronger integrated drilling activity and expanded directional drilling operations.
The company also continued to grow its regional footprint in 2026. It recently completed the MBPS transaction, which it said will help strengthen future drilling and oilfield services expansion across the region.
Looking ahead, ADNOC Drilling maintained its full-year guidance, forecasting around $5 billion in revenue and net profit in the range of $1.45 billion to $1.5 billion for 2026.
