ADNOC Drilling Q1 2026 net profit hits USD 347 mn on offshore growth

ADNOC Drilling's Q1 2026 net profit reached USD 347 million, with revenue up 5% to USD 1.23 billion. The performance was driven by offshore expansion and high rig utilization, with the company unaffected by regional geopolitical tensions.

ADNOC Drilling posted a USD 347 million net profit for the first quarter of 2026, driven largely by the expansion of its offshore operations and integrated oilfield services. According to a report by Gulf News, the Abu Dhabi-listed company saw its revenue rise 5 per cent year-on-year to reach USD 1.23 billion during the period.

The record performance followed a surge in rig utilization and the execution of long-term contracts across the region.

Resilience Amid Regional Uncertainty

The company confirmed that regional geopolitical tensions had no material operational or financial impact on its business during the first three months of the year. Despite market uncertainty and disruptions near the Strait of Hormuz, the driller maintained robust continuity planning. Management emphasized that safety and asset integrity remained the primary focus while the firm expanded its presence across the Middle East.

"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," the report quoted Chief Executive Abdulla Ateya Al Messabi.

Divisional Performance Highlights

Offshore Drilling Growth

The offshore drilling segment generated USD 345 million in revenue, supported by the contribution of two new jack-up rigs that entered service in late 2025. The company also received two AI-enabled island rigs from China during the quarter. These units are expected to begin operations gradually later this year.

Onshore Business Expansion

Meanwhile, the onshore business reported USD 477 million in revenue, aided by eight land rigs operating in Oman and Kuwait following a strategic stake acquisition in SLDC.

"Our people are central to this performance, maintaining safe and reliable operations while continuing to deploy technologies that drive efficiency and value," Al Messabi said.

Oilfield Services

The oilfield services division recorded USD 406 million in revenue, fueled by increased activity in integrated drilling and directional drilling operations.

Fleet Growth and Financial Outlook

ADNOC Drilling now manages a fleet of 170 rigs, making it the largest fleet in the Middle East and North Africa region. The company further strengthened its regional portfolio this month by completing the MBPS transaction to support future growth in oilfield services.

The report noted that the financial results showed that free cash flow increased 12 per cent to USD 356 million during the quarter. The company approved a first-quarter dividend of USD 262.5 million, which shareholders on record as of May 18 expect to receive in early June.

For the remainder of 2026, the company maintained its full-year guidance, forecasting total revenue of approximately USD 5 billion and a net profit between USD 1.45 billion and USD 1.5 billion. (ANI)

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