Adnoc Drilling delivers record first half profit on revenue boost

The company's second-quarter net income also climbed 19%, putting it on track to meet 2025 growth targets

Adnoc Drilling's net income for the six months to the end of June rose to $692 million. Photo: Adnoc Drilling

Adnoc Drilling, the Middle East's biggest drilling company by rig count, has reported a 21 per cent annual jump in first-half net profit as revenue climbed to a record, putting the company on track to hit its full-year growth targets.

Net income for the six months to the end of June rose to $692 million, the Abu Dhabi National Oil Company unit said on Wednesday in a filing to the Abu Dhabi Securities Exchange, where its shares trade.

Frist-half revenue jumped by more than 30 per cent on an annual basis to $2.37 billion. Earnings before interest, tax, depreciation and amortisation (Ebitda) − a key metric of profitability − grew 19 per cent year-on-year to almost $1.1 billion.

“Our record first half 2025 results once again demonstrate the strength, resilience and scaleability of Adnoc Drilling," said Abdulla Al Messabi, chief executive of Adnoc Drilling.

Adnoc Drilling's net income for the second quarter of 2025 also climbed 19 per cent to $351 million.

Revenue for the April-June period leapt 28 per cent to nearly $1.2 billion, while Ebitda gained 15 per cent to $545 million.

Those resulted in a record first half for Adnoc Drilling, as profit climbed 21 per cent to $602 million.

The company's board of directors approved a dividend of $217 million, or about Dh0.05 per share for the second quarter.

Revenue guidance

Revenue from Adnoc Drilling's oilfield services division shot up 127 per cent year-on-year to $689 million, driven by $265 million from unconventional business.

Its onshore unit's revenue rose 18 per cent annually to $1 billion, as new rigs began operations. The company's offshore segment, including jack-up and islands operations revenue, inched up 1 per cent to $671 million.

Adnoc Drilling raised the lower end of its revenue and net profit guidance for the full year, on the back of strong first-half performance.

It now expects its 2025 revenue to hit the $4.65 billion to $4.80 billion level. Revenue next year is expected to reach around $5 billion, the company said.

"With this momentum, we are firmly on track to achieving our full-year growth targets," said Mr Al Messabi, who was appointed as chief executive last month.

Adnoc Drilling is the largest integrated drilling services company in the Middle East by fleet size. It owned 142 rigs by the end of 2024, with three island rigs on order for 2026. The company expects to grow the rig count to at least 148 by the end of 2026, and to 151 by 2028.

Expansion push

The company is in the midst of expanding its portfolio and partnerships. So far in 2025, Adnoc Drilling has added about $4.8 billion in new contracts, which it says is the "strongest ever" for the period for adding backlog.

It has also continued to integrate the latest technologies − including artificial intelligence, automation and advanced analytics − to bolster its operations, and enhance efficiency, safety and reliability.

In April, it was awarded a five-year, $1.63 billion contract for integrated drilling services by Adnoc Offshore, which is expected to support its fleet use, diversify revenue streams and accelerate sustainable and long-term growth and returns.

The Abu Dhabi company also signed a joint venture agreement with global oilfield services company SLB in May for its land drilling rigs business in Kuwait and Oman, as it seeks to expand beyond the UAE.

"Adnoc Drilling has consistently demonstrated its ability to grow in any phase of the energy cycle ... we remain confident in our ability to continue delivering long-term value to our shareholders," Mr Al Messabi said.

Last year, the company teamed up with Alpha Dhabi Holding to launch Enersol, a technology-focused venture.

It aims to invest $1.5 billion in technology-driven companies in the oilfield services sector by the end of this year, the company said at the time.

Enersol has already acquired four companies and has spent $800 million out of a $1.5 billion capital expenditure earmarked through the end of 2025.