ADNOC Drilling posts $706 million H1 profit as shareholders receive $525 million dividend payout.
Dubai: ADNOC Drilling shareholders are set to receive a second-quarter dividend of $262.5 million, or around 6 fils per share, after the company reported record revenue and profit for the first half of 2026.
The payment is expected to be made in the second half of August to shareholders registered by August 10. This brings total dividends declared for the first six months of 2026 to $525 million, representing half of the company’s $1.05 billion annual dividend floor.
The company’s dividend floor is set to rise by at least 5 per cent annually through 2030, reinforcing its long-term commitment to shareholder returns.
First-half revenue reaches $2.46 billion
ADNOC Drilling’s first-half revenue climbed 4 per cent year on year to $2.46 billion, driven by increased activity across its drilling and oilfield services operations.
Net profit increased 2 per cent to $706 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 1 per cent to $1.08 billion. The company’s net profit margin remained steady at 29 per cent, with return on equity maintained at 34 per cent.
For the second quarter, revenue grew 3 per cent to $1.23 billion, while quarterly net profit climbed 2 per cent to $359 million. ADNOC Drilling said operations continued without disruption during the period, supported by strong fleet availability and a largely contracted revenue base.
“Growth in OFS is accelerating, while technology and AI are enhancing efficiency, performance and value creation across our operations,” ADNOC Drilling CEO Abdulla Ateya Al Messabi said.
“These record results reflect the strength of our business model and the disciplined execution by our people. With operations remaining resilient and uninterrupted throughout the period, we are pleased to reaffirm our full-year 2026 guidance with confidence.”
Oilfield services drives growth
Oilfield Services (OFS) remained ADNOC Drilling’s key growth driver, with revenue rising 5 per cent to $726 million in the first half.
The increase was supported by higher activity in Integrated Drilling Services, expansion of standalone services, and the timing of directional drilling and drilling fluids projects. ADNOC Drilling also expanded its slickline fleet and secured a 50 per cent share of ADNOC’s Vertical Rigless tender.
Onshore revenue rose 2 per cent to $1.03 billion, supported by ADNOC Drilling’s UAE operations and contributions from MBPS and SLDC, which operate 30 land rigs mainly across Oman and Kuwait.
Offshore revenue increased 5 per cent to $703 million, driven by the deployment of new jack-up rigs in the second half of 2025 and the conversion of rigs from onshore to offshore operations.
The company’s unconventional operations drilled more than 100 wells during the period while achieving targeted cost efficiencies, according to ADNOC Drilling.
AI-enabled rig begins operations
ADNOC Drilling deployed AD-300, its first AI-enabled automated island rig, ahead of schedule in June.
The rig is expected to start contributing to revenue in the second half of 2026. The company said increased automation would help improve utilisation, shorten well delivery times and reduce unit costs.
ADNOC Drilling plans to deploy five additional island rigs to support future offshore activity, while targeting around 70 Integrated Drilling Services rigs by the end of 2026.
Following the end of the quarter, a repurposed land rig also began operations in Oman through the MBPS platform, marking the company’s first organically deployed rig in the country.
Full-year guidance maintained
ADNOC Drilling has maintained its 2026 revenue guidance at approximately $5 billion, including around $2 billion from onshore operations and $1.5 billion each from offshore drilling and oilfield services.
The company expects full-year EBITDA to be between $2.2 billion and $2.3 billion, while net profit is forecast to reach between $1.45 billion and $1.50 billion.
The company continues to forecast free cash flow of between $1.2 billion and $1.3 billion, excluding acquisitions, while capital expenditure is expected to remain between $600 million and $800 million.
Net debt is projected to stay below two times EBITDA, with ADNOC Drilling maintaining its annual dividend floor of $1.05 billion for 2026.
