14/05/2026 03:52 AST
Action Energy Company, a Kuwait-based upstream services provider, reported a sharp increase in first-quarter earnings for 2026, with revenue for the three months ended March 31, 2026 rising 69.2 per cent year-on-year as the company expanded its operating rig fleet from 13 rigs in the first quarter of 2025 to 20 rigs in the same period this year.
The growth was supported by the full-quarter contribution of 10 new rigs deployed during 2025.
EBITDA climbed 53.6 per cent year-on-year to KWD 4.6 million ($15 million), while the EBITDA margin stood at 50.2 per cent.
The company attributed the margin performance to a shift in revenue mix, noting that underlying margins on operating rigs remained stable across both periods.
Net profit surged 150 per cent compared with the prior-year quarter, supported by higher earnings from the enlarged fleet and lower finance costs following the conversion of convertible preference shares in October 2025.
Operating cash flow also increased 179.5 per cent year-on-year, reflecting stronger profitability and improved operational efficiency.
Action Energy said its balance sheet strengthened considerably during the quarter, with the net debt-to-equity ratio improving to 0.61x from 1.67x a year earlier.
The improvement followed a capital increase, the conversion of preference shares, and proceeds raised through the company's IPO.
Drilling and workover services continued to represent the largest share of the company's business, accounting for approximately 72 per cent of the total backlog, with an average remaining contract life of five years.
During the quarter, the company operated 20 rigs at full utilisation, including newly added 550 HP and 750 HP rigs.
Action Energy completed 103 rig moves during the period, compared with 30 in the first quarter of 2025, reflecting higher activity levels across the expanded fleet.
Oilfield services contributed around 28 per cent of the company's backlog, with average contract durations of six to seven years.
The company said it continued mobilising its electric submersible pump, slickline, and once-through steam generator service lines as part of its strategy to diversify revenue streams and deepen integration across the upstream value chain.
In January 2026, Action Energy secured two major contracts from Kuwait Oil Company valued at a combined KWD 76.9 million ($249 million).
The contracts cover seven additional rigs and are expected to commence operations between the second half of 2026 and early 2027, increasing the company's rig fleet backlog to 27 rigs once fully mobilised.
Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, Chairman of Action Energy Company, said: "The results of the first quarter of 2026 reflect the strength and resilience of our business model, with continued growth momentum supported by fleet expansion, high rig utilisation, and a substantial multi-year contracted backlog with Kuwait Oil Company. Despite regional disturbances during the period, AEC delivered performance in line with expectations, ensured uninterrupted support to KOC operations, and continued to operate with safety as a core value. As we execute on our growth strategy, we remain committed to disciplined financial management, operational excellence, and creating long-term value for our shareholders, while reinforcing our position as a trusted national partner supporting Kuwait's energy ambitions."
Ahmad Mohammad Al-Ajlan, Board Member and Chief Executive Officer, said: "Q1 2026 demonstrates the operational scalability of our platform. With 20 operational rigs throughout the quarter, including the full contribution from the 10 new rigs deployed in 2025, we delivered strong revenue growth of 69.2 per cent year-on-year. Our balance sheet has been significantly strengthened following the IPO, with net debt to equity improving from 1.67x to 0.61x. We have already secured awards for an additional 7 rigs announced in January 2026, with deployment progressing in line with schedule, positioning the Company for continued growth through 2026 and beyond."
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