Adnoc Drilling posted record second-quarter and first-half 2026 revenue, with first-half revenue increasing 4 per cent year-on-year to $2.46 billion and net profit rising 2 per cent to $706 million.

Return on equity remained at an industry-leading 34 per cent, and the company declared $525 million in dividends during the first six months of the year, supported by strong free cash flow and disciplined capital deployment.

In the second quarter alone, Adnoc Drilling posted record revenue of $1.23 billion, up 3 per cent year-on-year, while net profit climbed 2 per cent to $359 million.

The performance was driven by continued expansion in Oilfield Services, stable offshore activity and sustained operational efficiency.

The Board of Directors approved a $262.5 million dividend for the second quarter, equivalent to approximately 6.0 fils per share, bringing total dividends approved for 2026 to $525 million.

The payment is expected in the second half of August to shareholders on record as of August 10, 2026.

The company noted that the distribution represents half of its $1.05 billion annual dividend floor, which is set to increase by a minimum of 5 per cent annually through at least 2030.

Management said the dividend policy is supported by strong free cash flow, disciplined capital allocation and long-term contracted revenues, providing shareholders with predictable income alongside future growth potential.

Abdulla Al Messabi, Chief Executive Officer, said the company continues to deliver across its key strategic priorities: "Adnoc Drilling continues to deliver on what matters most: safe and efficient operations, strategic growth, strong cash generation and increased shareholder returns. Growth in OFS is accelerating, while technology and AI are enhancing efficiency, performance and value creation across our operations. Supported by a highly contracted revenue base that provides strong visibility, every well we deliver generates data and insights that help make the next one better, creating a powerful cycle of continuous improvement. The successful completion of the MBPS acquisition further strengthens our regional platform and expands our growth opportunities. These record results reflect the strength of our business model and the disciplined execution by our people. With operations remaining resilient and uninterrupted throughout the period, we are pleased to reaffirm our full-year 2026 guidance with confidence."

A key milestone during the period was the early deployment of AD-300, the company's first AI-enabled automated island rig, in June 2026.

Scheduled to contribute from the second half of the year, the rig is expected to improve automation, increase utilisation, reduce delivery times and lower unit costs.

Adnoc Drilling plans to deploy five additional automated island rigs to support offshore expansion and future revenue growth.

The company said its broader growth strategy focuses on expanding Oilfield Services, increasing integrated service offerings, deploying advanced technologies and selectively expanding its regional footprint.

These initiatives are designed to strengthen earnings visibility, support margin expansion and deliver sustainable long-term cash generation.

Operationally, Adnoc Drilling maintained safe and efficient performance across all business segments during the first half, with high fleet utilisation and technology-enabled workflows supporting productivity.

Oilfield Services remained the company's primary growth engine, expanding activity across the well lifecycle and contributing to earnings growth and cash generation.

Onshore operations benefited from the integration of MBPS and SLDC, enhancing regional scale and expanding the company's addressable market.

Adnoc Drilling said unconventional resource development also advanced, with more than 100 wells drilled while achieving targeted cost efficiencies.

The company reported no material operational disruption from regional developments during the period.

By business segment, onshore revenue reached $1.03 billion, up 2 per cent year-on-year, supported by UAE operations and contributions from MBPS and SLDC, which together operate 30 land rigs, primarily in Oman and Kuwait.

Offshore revenue from jack-up and island rigs increased 5 per cent to $703 million, reflecting the contribution of new jack-up rigs deployed in the second half of 2025 and the conversion of rigs from onshore to offshore operations.

Oilfield Services revenue also grew 5 per cent to $726 million, driven by higher Integrated Drilling Services activity, expanded delivery of discrete services and favourable phasing in directional drilling and drilling fluids. -OGN/TradeArabia News Service