ADNOC Drilling Company (ADNOCDRILL) Q2 2026 earnings summary

Executive summary

• Achieved record first-half and second quarter 2026 results, with resilient growth momentum, uninterrupted operations, and 99% rig availability, reinforcing confidence in full-year guidance.

• Regional expansion accelerated through joint ventures, acquisitions (MBPS, SLDC), and first organic rig deployment in Oman, expanding presence in Oman, Kuwait, Saudi Arabia, and Bahrain.

• Early deployment of AI-enabled automated island rig and integration of new assets enhanced operational scale and efficiency.

• Supported ADNOC's upstream growth plans and ESG agenda, with strong safety, environmental, and workforce diversity metrics.

• Unaudited condensed consolidated financials for H1 2026 reviewed by PwC, with no material misstatements.

Financial highlights

• 1H 2026 revenue reached $2.46 billion, up 4% year-over-year; 2Q revenue was $1.23 billion, up 3% YoY.

• Net profit for 1H 2026 was $706 million (+2% YoY); 2Q net profit was $359 million (+2% YoY).

• EBITDA for 1H 2026 was $1.08 billion (44-45% margin), up 1% YoY; 2Q EBITDA was $557 million (45% margin).

• Free cash flow for 2Q26 was $297 million; cash and cash equivalents at period end were $355 million.

• Basic and diluted EPS for 1H 2026 was $0.0439, up from $0.0433 YoY.

Outlook and guidance

• FY26 guidance reaffirmed: revenue ~$5 billion, EBITDA $2.2–2.3 billion, net profit $1.45–1.5 billion.

• Dividend floor for 2026 set at $1.05 billion, increasing by at least 5% annually through 2030.

• Q3 expected to show sequential growth in revenue, EBITDA, and net income; 2027 revenue growth targeted at low to mid-single digits.

• Medium-term EBITDA margin targets: ~50% for domestic drilling, 23–26% for oilfield services.

• Management identified no material uncertainties over going concern, citing sufficient liquidity and undrawn borrowing facilities.