Adnoc Drilling's nine-month profit rises to $1.07bn as revenue hits record

Adnoc Drilling, the biggest drilling company by rig count in the Middle East, reported a marginal increase in its nine-month net profit as revenue climbed to a record, supported by the expansion of its onshore and offshore drilling operations.

Net profit attributable to shareholders of the company to the end of September increased 0.7 per cent annually to $1.07 billion in the first nine months of 2026, from $1.06 billion a year earlier, the company said in a bourse filing on Tuesday to the Abu Dhabi Securities Exchange, where its shares trade.

Revenue for the first nine months rose more than 2 per cent to a record $3.7 billion, driven by higher contributions from its onshore and offshore drilling businesses, as well as the consolidation of regional operations, the company said. Earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 2 per cent to $1.66 billion.

“Our nine-month performance reflects the strength of Adnoc Drilling’s business model, the resilience of our highly contracted revenue base and the successful execution of our growth strategy. We continue to deliver consistent financial performance while investing in the capabilities, technologies and partnerships that will support the next phase of our growth,” Abdulla Al Messabi, chief executive of Adnoc Drilling, said.

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For the third quarter ended September 30, Adnoc Drilling’s net profit attributable to owners of the company declined 0.8 per cent annually to $365.4 million, compared with $368.2 million in the same period last year. The revenue also declined marginally during the three-month period.

Drill-to-Operate strategy

The company also launched Drill-to-Operate, the next phase of its growth strategy. The strategy is expected to allow the company to generate more revenue from each well and expand its presence in regional energy markets.

“For decades, we have been trusted to construct some of the region’s most complex wells. We are now extending that capability across the full well lifecycle to capture more value from every well and expand the markets and services in which we operate,” Mr Al Messabi said, calling the launch “a natural evolution” of Adnoc Drilling.

“Through Oilfield Services, Turnwell, Enersol, regional expansion and AI-enabled technologies, we are building a broader, more diversified energy services business, creating new pathways for sustainable growth while continuing to deliver attractive returns for shareholders,” he added.

Adnoc Drilling is among the companies at the centre of UAE's ambitions to chart an independent production strategy, aimed at 5 million barrels per day of crude oil production capacity by 2027.

It also expects more drilling opportunities in gasfield development as Adnoc accelerates its production strategy with $6.2 billion of investment to develop the Umm Shaif gas cap project in Abu Dhabi. Adnoc Drilling was awarded a $365 million contract for the project in July.

In the first nine months of the year, the company’s onshore drilling revenue increased 5 per cent year-on-year, supported by the consolidation of regional operations, while offshore drilling revenue rose 4 per cent following the addition of new capacity, including an artificial intelligence-enabled island rig deployed in June, it said on Tuesday.

Adnoc Drilling has continued to expand its fleet and oilfield services capabilities as it seeks to capture a larger share of spending on oil and gas development in the UAE and regional markets.

The growth in revenue and profit was partly offset by the planned phasing of unconventional drilling activity and the repurposing of some onshore rigs. The company said conventional oilfield services activity continued to expand, although unconventional activity remained below the level recorded a year earlier.

Dividend

The company’s board on Tuesday approved a third-quarter dividend of $350 million, comprising a base payout of $262.5 million and an additional discretionary dividend of $87.5 million. A further $87.5 million discretionary payout is expected in April next year, subject to shareholder approval, taking the total dividend for 2026 to $1.225 billion, up 22.5 per cent from last year, the company said.

“Our continued performance and strong cash generation enable us to invest in future growth while delivering enhanced shareholder returns through our progressive dividend policy, including a $175 million discretionary dividend, the first tranche of which will be paid this quarter,” Mr Al Messabi said.

Outlook

Adnoc Drilling said its sticking to its full-year earnings guidance of $5 billion in revenue and approximately $1.45 billion in net profit. The company said it expects free cash flow of between $1.2 billion and $1.3 billion this year, excluding mergers and acquisitions.

For 2027, Adnoc Drilling forecasts low-to-mid single-digit revenue growth, supported by continued expansion of its drilling and oilfield services businesses, as well as contributions from regional operations. However, net profit is expected to remain broadly stable next year, as higher depreciation and financing costs associated with its expansion offset gains from increased activity, it said.