Adnoc Drilling Nine-Month Net Profit Edges Up to $1.07bn as Revenue Hits Record High

Adnoc Drilling, the Middle East’s largest drilling company by rig count, posted a slight increase in net profit for the first nine months of the year, while revenue reached an all-time high, driven by growth in its onshore and offshore drilling operations.

Net profit attributable to shareholders for the period ending September rose 0.7 per cent year-on-year to $1.07 billion, compared with $1.06 billion a year earlier, the company said in a filing on Tuesday to the Abu Dhabi Securities Exchange, where its shares are listed.

Revenue for the nine-month period increased more than 2 per cent to a record $3.7 billion, supported by higher contributions from its onshore and offshore drilling businesses and the consolidation of regional operations. Earnings before interest, taxes, depreciation and amortisation (Ebitda) climbed 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,” said Abdulla Al Messabi, chief executive of Adnoc Drilling.

Third-Quarter Results

For the three months to 30 September, Adnoc Drilling’s net profit attributable to owners declined 0.8 per cent year-on-year to $365.4 million, from $368.2 million in the same period last year. Revenue also edged lower during the quarter.

Drill-to-Operate Strategy

The company launched Drill-to-Operate, the next phase of its growth strategy, which is expected to enable it to generate more revenue from each well and broaden its footprint 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, describing the initiative as “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 central to the UAE’s ambitions for an independent production strategy, targeting 5 million barrels per day of crude oil production capacity by 2027.

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

In the first nine months of the year, the company’s onshore drilling revenue rose 5 per cent year-on-year, helped by the consolidation of regional operations, while offshore drilling revenue increased 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 revenue and profit growth 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 approved a third-quarter dividend of $350 million on Tuesday, consisting of a base payout of $262.5 million and an additional discretionary dividend of $87.5 million. A further discretionary payout of $87.5 million is expected in April next year, subject to shareholder approval, bringing 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 reiterated its full-year earnings guidance of $5 billion in revenue and approximately $1.45 billion in net profit. The company 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.