ADNOC Drilling Company PJSC continues to set new benchmarks, delivering a record-breaking second quarter (Q2) and first half (H1) for 2026. Driven by accelerating momentum in its Oilfield Services (OFS) segment and disciplined operational execution, the company has successfully translated a highly contracted revenue base into strong, visible earnings.
The UAE-based drilling giant reported a massive H1 revenue of $2.46 billion, reflecting a 4 percent year-on-year (YoY) increase. Net profit for the first six months of the year climbed 2 percent YoY to reach a staggering $706 million.
This impressive financial performance underscores the company’s ability to generate industry-leading value, maintaining a robust Return on Equity (ROE) of 34 percent. Bolstered by strong free cash flow and strategic capital deployment, the company declared total dividends of $525 million for H1 2026, reassuring investors of its commitment to steady, lucrative returns.
Uninterrupted Operations and Technology-Led Growth
A significant factor behind this quarter’s success was the company’s ability to maintain uninterrupted operations and high fleet availability, successfully navigating the complexities of regional geopolitical uncertainty. Reflecting immense confidence in its operational resilience, the company has officially reaffirmed its full-year 2026 financial guidance.
ADNOC Drilling is also making aggressive strides in technological integration. The company noted the early, successful deployment of AD-300, its first AI-enabled automated island rig. This deployment, executed three months ahead of schedule, reinforces a deeply technology-led growth strategy. Alongside five additional planned island rigs, this advanced infrastructure is expected to support future offshore expansion and value creation dramatically.
Highlighting the transformative impact of these tools, Abdulla Ateya Al Messabi, ADNOC Drilling CEO, stated:
“ADNOC Drilling continues to deliver on what matters most: safe and efficient operations, strategic growth, strong cash generation and increased shareholder returns. Growth in OFS is accelerating, while technology and AI are enhancing efficiency, performance and value creation across our operations. Supported by a highly contracted revenue base that provides strong visibility, every well we deliver generates data and insights that help make the next one better, creating a powerful cycle of continuous improvement.”
Strategic Acquisitions Fuel Regional Expansion
The company’s growth is not merely organic; strategic regional acquisitions are playing a crucial role in expanding its Middle Eastern footprint. Al Messabi specifically noted that the successful completion of the MBPS acquisition, a deal valued at $204 million, has significantly expanded the company’s regional platform and growth opportunities across Oman, Kuwait, Saudi Arabia, and Bahrain.
This disciplined expansion is visible across all core business segments. For Q2 specifically, the company posted a record revenue of $1.23 billion (a 3 percent YoY increase) and a net profit of $359 million. Based on this strong performance, the Board of Directors approved a generous Q2 dividend of $262.5 million, scheduled for payment in late August. This forms part of an ambitious $1.05 billion annual dividend floor that is guaranteed to increase by at least 5 percent annually through 2030.
A Closer Look at Segment Performance
The H1 revenue growth was uniformly supported across all major business lines:
- Onshore: Revenue hit $1.03 billion (up 2 percent YoY), heavily supported by expanded operations across the UAE and significant contributions from the newly acquired MBPS and SLDC platforms, which operate roughly 30 land rigs primarily in Oman and Kuwait.
- Offshore (Jack-up & Islands): Revenue reached $703 million (up 5 percent YoY), reflecting the successful deployment of new jack-up rigs in late 2025 and strategic rig conversions.
- Oilfield Services (OFS): Operating as the main growth engine, revenue soared to $726 million (up 5 percent YoY). This was driven by a sharp increase in Integrated Drilling Services (IDS) activity and expanded delivery of discrete specialized services.
By perfectly balancing aggressive regional expansion with cutting-edge AI technology, ADNOC Drilling continues to solidify its position as an undisputed powerhouse in the Middle Eastern energy sector.
