High utilization, integrated services growth and technology-enabled delivery drive record first‑quarter revenue and net income
Strong free cash flow supports progressive dividend framework with $262.5 million 1Q 2026 dividend approved
Portfolio expansion continues, with two regional acquisitions closed year‑to‑date and a visible growth pipeline
Record fleet size of 170 rigs across the GCC, largest in MENA and one of the largest in the world
Abu Dhabi, UAE – May 11, 2026: ADNOC Drilling Company PJSC (“ADNOC Drilling” or the “Company”) (ADX symbol: ADNOCDRILL / ISIN: AEA007301012) announced today its financial results for the first quarter (“1Q”) ended March 31, 2026. The Company delivered its strongest first quarter performance on record in terms of revenue and net income, building on the record‑breaking performance delivered in 2025. This record start of the year was supported by high fleet activity, disciplined execution, integrated services growth, long-term contract coverage and technology‑led delivery across the fleet.
1Q 2026 Key Highlights: Record First‑Quarter Performance and Operational Discipline
Performance in the first quarter reflects the resilience of ADNOC Drilling’s business model, underpinned by long-term contracts, high fleet utilization, and disciplined cost management. Across all segments, the Company maintained operational continuity, stable activity levels and strong cash generation supported by ongoing operational efficiencies, demonstrating its ability to deliver consistent earnings in dynamic market conditions.
ADNOC Drilling experienced no material operational or financial impact in the first quarter of 2026, continuity planning remains robust, with safety, people and asset integrity as the highest priorities.
Abdulla Ateya Al Messabi, ADNOC Drilling CEO, said: “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. Our people are central to this performance, maintaining safe and reliable operations while continuing to deploy technologies that drive efficiency and value. As we progress through 2026, we remain focused on disciplined investment, strong cash generation and sustainable long term returns for shareholders, while supporting ADNOC’s production capacity objectives.”
Dividend Framework and Shareholder Returns
For 1Q 2026, the Board of Directors has recommended a dividend of $262.5 million (approximately 6 fils per share), expected to be paid in early June to shareholders of record as of May 18, 2026. The Company’s $1.05 billion annual dividend floor for 2026 remains well supported by strong free cash flow generation, long term contract coverage and balance sheet strength.
1Q 2026 Operational and Segmental Performance
Following a record 2025, ADNOC Drilling delivered stable and safe operations in 1Q 2026, supported by high activity levels, disciplined execution and the continued scaling of integrated services and technology-enabled delivery.
Key Financial Metrics
| USD Millions | 1Q 26 | 1Q 25 | % Change |
|---|---|---|---|
| Revenue | 1,228 | 1,170 | +5% |
| EBITDA | 527 | 533 | -1% |
| Net Profit | 347 | 341 | +2% |
| Earnings per Share (USD/ share) | 0.022 | 0.021 | +2% |
| Capital Expenditure 1 | 91 | 91 | - |
| Free Cash Flow (Excl. M&A) | 356 | 496 | +12% |
| EBITDA Margin | 43% | 46% | -3% |
| EBITDA Margin Conventional | 50% | 51% | -1% |
| Net Profit Margin | 28% | 29% | -1% |
| Net Profit Margin Conventional | 33% | 32% | +1% |
1Cash payments for purchase of property and equipment including prepaid delivery payments, excluding CapEx accruals
Portfolio expansion and optionality
Since the start of 2026, ADNOC Drilling has progressed its disciplined portfolio strategy, strengthening scale, earnings visibility, and long-term growth optionality. The consolidation of SLDC enhanced onshore execution capability, while the MBPS transaction, completed on May 4, 2026, established a regional platform for further drilling and oilfield services growth, with both companies securing new multi-rig, multi-year contracts during the period.
Equity‑accounted platforms Enersol and Turnwell continued to contribute positively during the quarter. In 1Q 2026, Turnwell delivered the UAE’s first 10,000‑ft lateral unconventional gas wells.
Full Year 2026 Guidance
ADNOC Drilling remains well positioned to deliver full-year 2026 financial guidance, underpinned by high utilization, integrated services growth and long-term contract visibility.
| USD Billions (unless otherwise stated) |
FY 2026 Guidance |
|---|---|
| Revenue | ~ 5 |
| of which Onshore | ~ 2 |
| of which Offshore | ~ 1.5 |
| of which Oilfield Services | ~ 1.5 |
| EBITDA | 2.2 – 2.3 |
| EBITDA Margin | 44 – 45% |
| Net Profit | 1.45 – 1.50 |
| Net Profit Margin | 29 – 30% |
| CapEx (cash capex, excluding M&A) | 0.6 –0.8 |
| Free Cash Flow (excluding M&A) | 1.2 – 1.3 |
| Leverage (Net Debt/EBITDA) | < 2.0x |
| Dividend floor | 1.05 (+5% YoY) |
The forward outlook remains strong, anchored by sustained development in the drilling activity, supported by the new island rigs deliveries. This is complemented by ongoing expansion in OFS and attractive regional growth avenues. ADNOC Drilling targets to deploy approximately 70 IDS rigs by the end of 2026, reinforcing its operational scale and future OFS earnings visibility.
In the medium-term, management is focused on preserving a healthy EBITDA margin of circa 50% for the domestic conventional drilling business, and 23-26% for the conventional OFS. Maintenance CapEx is expected at around $250 million per annum. Guidance for 2027 and beyond will be provided as the phasing for additional rigs and additional OFS volumes is finalized.
Webcast and Conference Call
ADNOC Drilling will host an earnings webcast and conference call for investors and analysts, followed by a Q&A session, on Monday, May 11, 2026, at 4pm UAE time, hosted by Abdulla Ateya Al Messabi, CEO, Youssef Salem, CFO and the broader leadership team.
Interested parties are invited to join the call by clicking here. The transcript will be accessible following the call here.
Release Details
May 11, 2026
Abu Dhabi, UAE