Adnoc Drilling posted a record second-quarter profit as revenue jumped and its operations continued despite regional geopolitical uncertainty.
Net profit for the three months to the end of June climbed to $357.06 million, an almost 2 per cent year-on-year rise, the biggest drilling company by rig count in the Middle East said on Thursday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
The rise in profit was also supported by strict cost discipline and operational efficiency during the reported period, the company said.
Revenue for the April to June quarter rose 3 per cent per cent annually to $1.23 billion, driven by driven by “strong oilfield services growth, disciplined execution and a highly contracted revenue base that provides strong earnings visibility”, the company added.
Adnoc Drilling said it maintained a high fleet use rate and “uninterrupted operations throughout the quarter” that supported strong cash generation and strengthened its revenue base.
“These record results reflect the strength of our business model and the disciplined execution by our people,” chief executive Abdulla Al Messabi said.
The company, he said, continued to deliver “safe and efficient operations, strategic growth, strong cash generation and increased shareholder returns”.
Adnoc Drilling is among the companies at the centre of UAE's ambitions to chart an independent production strategy, aimed at 5 million barrels per day of crude oil production capacity by 2027.
Major offshore projects, including the Hail sour gas development and the Upper Zakum oilfield expansion, as well as onshore growth at the Shah gasfield, are driving the near-term demand, chief financial officer Youssef Salem told The National in an interview in May.
Frist-half boost
The company’s first-half financial performance also hit a record, with net profit for the fist six months of the year climbing 2 per cent year-on-year to $706 million.
Revenue for the reporting period climbed 4 per cent on an annual basis to $2.46 billion amid strong growth across business lines.
Oilfield services revenue during the January to June period rose 5 per cent annually to $726 million, driven by “higher integrated drilling services, expanded delivery of discrete services”, the company said.
Onshore segment revenue also rose by 2 per cent from a year earlier period to $1.03 billion, supported by Adnoc Drilling’s operations across the UAE as well as its operations in Oman and Kuwait.
The company’s offshore revenue jumped 5 per cent annually to $703 million, which it said reflects the “contribution from new jack-ups deployed in the second half of 2025, alongside rig conversions from onshore to offshore”, it said.
In June, Adnoc Drilling said it has activated the newest artificial intelligence-powered walking island rig three months ahead of schedule.
The new AD-300 machinery, part of a $1.54 billion programme awarded by Adnoc Offshore in 2024 and 2025 comprising six such rigs, is aimed at boosting output capacity and automation.
Adnoc Drilling has been continually expanding its footprint. The company's rig fleet stood at 170 at the end of the first quarter, including 140 rigs in Abu Dhabi.
Last year, it signed a joint venture agreement with global oilfield services company SLB for its land drilling rigs business in Kuwait and Oman.
