ADNOC Drilling reported its strongest first-quarter performance on record, driven by high fleet utilization, growth in integrated services, and continued operational efficiency across its drilling operations.
The Abu Dhabi-listed energy services company said first-quarter revenue for 2026 rose 5 percent year-on-year to $1.23 billion, while net profit increased 2 percent to $350 million.
Free cash flow climbed 12 percent year-on-year to $360 million, with return on equity reaching 33 percent during the quarter.
The company also announced a recommended quarterly dividend of $262.5 million, equivalent to approximately 6 fils per share, payable in early June to shareholders registered by May 18.
ADNOC Drilling said the strong start to 2026 builds on the company’s record-breaking 2025 performance and reflects the resilience of its long-term contract-driven business model.
The company attributed the results to stable fleet activity, disciplined cost management, operational continuity, and growing demand for integrated drilling and energy services.
Abdulla Ateya Al Messabi said the results demonstrate the strength of the company’s integrated energy services strategy and operational execution capabilities.
“This performance reflects the strength of our integrated drilling and energy services model, supported by long-term contracts, high utilization, and consistent execution,” he said.
The company noted that technology deployment and operational optimization initiatives continued contributing to efficiency gains and value creation across its fleet.
ADNOC Drilling additionally said it experienced no material operational or financial disruptions during the first quarter despite ongoing geopolitical uncertainty across regional energy markets.
Industry analysts say ADNOC Drilling continues benefiting from Abu Dhabi’s broader energy expansion strategy as ADNOC pushes forward with production capacity growth targets and upstream investments.
The company has steadily expanded its fleet and integrated services business in recent years while positioning itself as one of the region’s largest drilling and oilfield services providers.
The results also reflect broader resilience across Gulf energy companies, many of which continue reporting strong earnings supported by long-term contracts, elevated energy demand, and strategic infrastructure investments.
ADNOC Drilling maintained that its $1.05 billion annual dividend floor for 2026 remains well supported by free cash flow generation, balance sheet strength, and long-term contract coverage.
Analysts note that dividend stability remains a major attraction for regional energy investors, particularly as Gulf-listed energy firms continue balancing shareholder returns with expansion investments.
The company said it remains focused on disciplined investment, operational reliability, and supporting ADNOC’s long-term production capacity objectives throughout 2026.
With inputs from WAM
