11/05/2026 09:51 AST
ADNOC Drilling, a key unit of Abu Dhabi National Oil Company (ADNOC), has reported its strongest-ever first-quarter earnings on Monday, supported by high fleet utilization, growth in integrated drilling services and long-term contracts.
The Abu Dhabi-listed company posted first-quarter revenue of $1.23 billion, up 5% year-on-year, while net profit rose 2% to $347 million.
Free cash flow increased 12% to $356 million, supporting the company's dividend framework. ADNOC Drilling's board approved a first-quarter dividend of $262.5 million, equivalent to around 6 fils per share, payable in early June to shareholders on record as of May 18.
Chief Executive Abdulla Ateya Al Messabi said the results reflected the strength of the company's integrated drilling and energy services business, supported by long-term contracts, operational discipline and technology deployment.
"Following our strongest year on record in 2025, we have delivered a resilient and disciplined start to 2026," Al Messabi said in a statement.
ADNOC Drilling said it continued to benefit from stable activity levels across its onshore, offshore and oilfield services segments.
Onshore revenue reached $477 million, supported by operations in Oman and Kuwait after the company acquired a 70% stake in SLDC, a joint venture with SLB.
Offshore revenue totalled $345 million, driven by two new jack-up rigs that began operations in the second half of 2025 and the conversion of two land rigs for offshore use. The company said two AI-enabled island rigs arrived from China during the quarter and are expected to begin operations gradually in the second half of 2026.
Oilfield services revenue rose to $406 million, boosted by higher integrated drilling services activity, directional drilling and drilling fluids work.
ADNOC Drilling said it now operates a fleet of 170 rigs across the Gulf region, making it the largest drilling fleet in the Middle East and North Africa.
The company reaffirmed its full-year 2026 guidance, forecasting around $5 billion in revenue and net profit of between $1.45 billion and $1.50 billion.
It also said it expects to deploy around 70 integrated drilling services rigs by the end of 2026 as it expands its regional footprint and technology-led operations.
Since the start of the year, ADNOC Drilling has completed two regional acquisitions, including the consolidation of SLDC and the acquisition of MBPS, completed on May 4, to support future drilling and oilfield services growth.
The company said its equity-accounted ventures, including Turnwell and Enersol, continued to contribute positively during the quarter. Turnwell delivered the UAE's first 10,000-foot lateral unconventional gas wells in the period.
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