ADNOC Drilling profit surges to $1.45 billion after record year
Strong rig demand and AI gains lift earnings while payouts rise to $1 billion
Dubai: ADNOC Drilling delivered its strongest financial performance on record after revenue rose 22% to $4.9 billion and net profit climbed 11% to $1.45 billion, supported by high rig utilisation, long term contracts and expanding oilfield services activity across Abu Dhabi and regional markets. Free cash flow jumped 62% to $1.47 billion while return on equity reached 35%, reflecting strong operating leverage and disciplined capital deployment.
Management linked the performance to technology adoption across the fleet and execution gains across integrated drilling and services, which helped convert activity growth into higher earnings and cash returns. EBITDA increased 9% to $2.2 billion while total dividends for the year reached $1 billion, reinforcing the company’s positioning among the region’s highest returning energy service operators.
Dividend visibility strengthens investor appeal
Board members recommended a fourth quarter dividend of $250 million, equivalent to about 5.7 fils per share, scheduled for payment in April. Total distributions for 2025 therefore reach $1 billion while the company has set a dividend floor of $1.05 billion for 2026, signalling confidence in cash generation and balance sheet strength. Planned minimum cumulative dividends of about $6.8 billion between 2025 and 2030 provide long range visibility for investors, representing roughly Dh1.56 per share and an implied yield above 28% based on market data from February 11, 2026.
Segment growth led by services and offshore
Oilfield Services recorded the fastest expansion with revenue rising 80% to $1.46 billion after higher activity levels and increased integrated drilling services work. Onshore operations generated $2.04 billion, up 8%, supported by new rigs and unconventional drilling demand. Offshore revenue climbed 6% to $1.40 billion after rig conversions and the addition of new jack ups entering service during the year.
Through execution excellence, technology‑led efficiency and a disciplined approach to capital allocation and operations, we continue our transformation into the region’s most advanced energy services company. By expanding across the GCC, pioneering AI‑driven operations and setting new benchmarks in sustainability, we are unlocking value and helping power the UAE’s energy future. This is just the beginning of a new era of growth, innovation and impact.Abdulla Ateya Al Messabi, ADNOC Drilling CEO
More than $5 billion in contract awards secured during 2025 extended revenue visibility through 2040, strengthening backlog coverage and supporting future planning. Regional expansion also progressed through a joint venture operating in Kuwait and Oman and a pending acquisition of an 80% stake in MBPS, subject to approvals.
Technology and scale reshape operations
Operational milestones highlighted efficiency gains across the fleet, including delivery of the world’s longest well at 55,000 feet and a regional drilling record of 5,332 feet in 24 hours. Predictive maintenance systems, automation and AI driven workflows are being deployed across operations to improve uptime and reduce costs while enhancing safety standards.
Solar integration across camps, mangrove planting initiatives and workforce investment programmes formed part of environmental and workforce development measures introduced during the year. Technology platform Enersol expanded deployments of digital solutions designed to cut emissions and boost productivity while Turnwell operations delivered unconventional wells with performance comparable to leading US developments.
Outlook supported by utilisation and contracts
Management expects performance to strengthen again in 2026, supported by high utilisation, operating leverage and efficiency gains from digital deployment. Potential upside could come from additional integrated drilling services awards, expanded oilfield services scope and further progress in ADNOC’s upstream development plans. Six new island rigs scheduled for delivery between 2026 and 2028 are set to expand capacity while the company targets about 70 integrated drilling services rigs in operation by the end of 2026.
Building on the momentum reflected in our FY 2025 results, 2026 will be about scaling even faster – more discrete and integrated services deployments, deeper digital integration, increased automation and new technologies that deliver measurable cost efficiencies and performance impact to our customers," said Emri Zeineldin, SVP Oilfield Services (OFS), ADNOC Drilling. "We will expand our unconventional capabilities, deepen collaboration across ADNOC and continue developing UAE talent to lead the next era of energy services. Our ambition is simple: to set a new regional and global benchmark for discrete and integrated services – built in the UAE, for the UAE, the region and the globe."
Domestic conventional operations are expected to maintain EBITDA margins near 50% while oilfield services margins are projected in a range of 23% to 26% over the medium term. Annual maintenance capital expenditure is projected around $250 million, allowing the company to sustain growth while maintaining strong cash returns and balance sheet flexibility.
