ADNOC Drilling posts strong nine-month profit surge, outlines $6.8 billion dividend roadmap

Dubai: ADNOC Drilling reported a 27% surge in revenue to $3.63 billion for the first nine months of 2025. Net profit climbed 17% to $1.06 billion, while free cash flow surged 174% to $1.2 billion.

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The board approved a $250 million dividend for the third quarter, equivalent to 5.7 fils per share, payable in November 2025. It also endorsed a new dividend framework that targets a minimum of $6.8 billion in shareholder distributions between 2025 and 2030, with a 27% uplift next year and at least 5% annual increases thereafter.

ADNOC Drilling said the policy reflects its confidence in long-term cash generation and commitment to progressive returns for investors.

Abdulla Ateya Al Messabi, CEO of ADNOC Drilling, said: “Our record performance in 2025 showcases the strength and resilience of our business model and disciplined execution. The true story is the transformational growth ahead; we are scaling unconventionals to a potential of 300+ wells annually, expanding our Integrated Drilling Services (IDS) fleet to 70 rigs and preparing for new offshore island operations by the end of the decade. These milestones can add billions in new revenue streams, de-risked by our in-house expertise and powered by our ambition to become AI-native. With our enhanced dividend policy targeting at least $6.8 billion through 2030, ADNOC Drilling is setting a new global standard for reliable, growing shareholder returns.”

Segment growth and expansion

Revenue rose across all business lines. The onshore segment delivered $1.52 billion, up 13%, supported by new rigs and higher unconventional activity. Offshore operations generated $1.04 billion, up 3%, while Oilfield Services surged 114% to $1.07 billion on the back of rising integrated drilling and discrete services.

During 2025, the company secured over $5 billion in new contracts, extending visibility through 2040. It also advanced regional expansion plans through its joint venture with SLB in Kuwait and Oman, pending regulatory approvals.

Technology and strategic priorities

ADNOC Drilling is accelerating the adoption of AI and automation to improve efficiency and safety. Initiatives such as predictive maintenance, autonomous rig moves, and intelligent workflows are already driving cost and time efficiencies.

The company aims to grow its IDS fleet to 70 rigs by 2026 and expand to 151+ rigs by 2028. Maintenance capital expenditure is expected at around $250 million annually, while leverage remains conservative with a target of up to 2.0x net debt to EBITDA.

Medium-term guidance

ADNOC Drilling expects FY 2026 revenue to approach $5 billion, with margins broadly in line with 2025 levels. Conventional drilling margins are forecast above 50%, while Oilfield Services margins will remain between 23 and 26%.