ADNOC Drilling posts $347m profit after offshore, oilfield growth

Abu Dhabi: ADX-listed ADNOC Drilling announced Monday that regional had no material operational or financial impact on its business during the first quarter of 2026, as the company reported its strongest first-quarter performance on record.

The Abu Dhabi-listed drilling company said continuity planning remained “robust”, with safety, people and asset integrity remaining top priorities during the period.

ADNOC Drilling reported first-quarter revenue of $1.23 billion, up 5 per cent year-on-year, while net profit rose 2 per cent to $347 million. Free cash flow increased 12 per cent to $356 million.

The company also approved a first-quarter dividend of $262.5 million, expected to be paid in early June to shareholders on record as of May 18.

The results come at a time when energy markets and shipping routes across the Gulf region continue to face uncertainty linked to the wider US-Israel-Iran conflict and disruptions around the Strait of Hormuz.

What worked

ADNOC Drilling said its performance was supported by high rig utilisation, long-term contracts and continued growth in integrated drilling and oilfield services.

Chief executive Abdulla Ateya Al Messabi said: “Following our strongest year on record in 2025, we have delivered a resilient and disciplined start to 2026. This performance reflects the strength of our integrated drilling and energy services model, supported by long-term contracts, high utilization and consistent execution.”

He added: “Our people are central to this performance, maintaining safe and reliable operations while continuing to deploy technologies that drive efficiency and value.”

The company said it now operates a record fleet of 170 rigs across the GCC, making it the largest drilling fleet in the Middle East and North Africa region and among the world’s biggest.

Onshore business

Its onshore drilling business generated $477 million in revenue during the quarter, supported by eight land rigs operating in Oman and Kuwait after ADNOC Drilling acquired a 70 per cent stake in SLDC, a joint venture with SLB.

Offshore operations generated $345 million in revenue, helped by two new jack-up rigs that started operations in the second half of 2025. The company also said two AI-enabled island rigs arrived from China during the quarter and are expected to gradually begin operations later this year.

Its oilfield services division generated $406 million in revenue, driven by higher integrated drilling services activity and expanded directional drilling operations.

ADNOC Drilling also continued expanding its regional business portfolio in 2026. Earlier this month, it completed the MBPS transaction, which the company said would support future drilling and oilfield services growth across the region.

Looking ahead, ADNOC Drilling maintained its full-year guidance, expecting around $5 billion in revenue and net profit between $1.45 billion and $1.5 billion for 2026.