Adnoc Drilling Achieves Record Revenue and $1.07 Billion Profit in Nine Months

Adnoc Drilling, the largest drilling company in the Middle East by rig count, has reported a slight increase in its nine-month net profit, reaching $1.07 billion, while simultaneously achieving record revenue. This performance was bolstered by the expansion of its onshore and offshore drilling operations.

For the period ending September, net profit attributable to the company's shareholders rose by 0.7% year-on-year to $1.07 billion, up from $1.06 billion in the same period last year, according to a filing with the Abu Dhabi Securities Exchange. Revenue for the first nine months of the year climbed over 2% to a record $3.7 billion. This growth was attributed to increased contributions from its onshore and offshore drilling segments, as well as the integration of regional operations.

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) saw a 2% increase, reaching $1.66 billion. Abdulla Al Messabi, chief executive of Adnoc Drilling, commented, "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."

In the third quarter ended September 30, net profit attributable to owners of the company saw a marginal decline of 0.8% year-on-year to $365.4 million, compared to $368.2 million in the prior year's third quarter. Revenue also experienced a slight decrease during this three-month period.

The company has also introduced 'Drill-to-Operate,' the next phase of its strategic growth plan, which aims to enhance revenue generation per well and expand its footprint in regional energy markets. Mr Al Messabi stated, "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," describing the initiative as a "natural evolution" for Adnoc Drilling.

He further added, "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."

Adnoc Drilling is a key player in the UAE's strategy to achieve an independent production capacity of 5 million barrels of crude oil per day by 2027. The company anticipates increased drilling opportunities in gasfield development as Adnoc progresses its production strategy, including a $6.2 billion investment in the Umm Shaif gas cap project, for which Adnoc Drilling secured a $365 million contract in July.

During the first nine months of the year, onshore drilling revenue grew by 5% year-on-year, supported by the consolidation of regional operations. Offshore drilling revenue increased by 4%, attributed to the addition of new capacity, including an artificial intelligence-enabled island rig deployed in June.

Adnoc Drilling has been actively expanding its fleet and oilfield services capabilities to secure a larger share of oil and gas development spending in the UAE and regional markets. The growth in revenue and profit was partially moderated by the planned phasing out of unconventional drilling activities and the repurposing of some onshore rigs. While conventional oilfield services activity continued to expand, unconventional activity remained below the previous year's levels.

The company's board approved a third-quarter dividend of $350 million, consisting of a base payout of $262.5 million and a discretionary dividend of $87.5 million. An additional discretionary payout of $87.5 million is anticipated in April next year, subject to shareholder approval, bringing the total dividend for 2026 to $1.225 billion, a 22.5% increase from the previous year.

"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," stated Mr Al Messabi.

Looking ahead, Adnoc Drilling is maintaining its full-year earnings guidance, projecting $5 billion in revenue and approximately $1.45 billion in net profit. The company expects free cash flow to range between $1.2 billion and $1.3 billion for the year, excluding mergers and acquisitions. For 2027, Adnoc Drilling forecasts low-to-mid single-digit revenue growth, driven by the ongoing expansion of its drilling and oilfield services businesses, along with contributions from regional operations. However, net profit is expected to remain relatively stable next year, as increased depreciation and financing costs associated with expansion are anticipated to offset gains from higher activity levels.