ADNOC Drilling Makes Strongest-Ever 1Q Performance, hitting USD 347 mn on offshore development

Adnoc Drilling, the biggest drilling unit in the Gulf Region, confirmed a 2% increase in profits during the first quarter of 2026. It shows its efficiency in withstanding geopolitical turbulence within the region. It also went on to explain that it had not been impacted by any of the conflicts taking place within the Middle East region. ADNOC Drilling Company PJSC is also known as “ADNOC Drilling” or the “Company” (ADX symbol: ADNOCDRILL / ISIN: AEA007301012).

Adnoc Drilling’s Highest Quarterly Profits Ever

In the first quarter of 2026, Adnoc Drilling made a net income of USD 347 million, driven mainly by the development of its offshore operations and integrated oilfield services.

It achieved revenue growth of 5% to $1.23 billion and increased to 2% to $347 million during the first three months of 2026, driven by increased activity in its business units. Its free cash flows also grew by 12% to $356 million, giving it more liquidity for dividends and investments. Also, its return on equity reached 33%, according to reports by Gulf News.

The company’s board has announced a quarterly dividend of $262.5 million for Q1, payable in June to shareholders on record as of 18 May 2026, displaying its gratitude to its shareholders for delivering value. The return on equity for Adnoc Drilling is currently at 33%, making it one of the top-performing companies in the Middle Eastern energy industry.

According to Abdulla Ateya Al Messabi, the CEO of Adnoc Drilling, this was the best first-quarter performance ever recorded. After last year’s strong performance, Q1 of 2026 has delivered a resilient and disciplined start.

He said that this was achieved with effective execution, technological adaptation, and the diversification of drilling services. Further added that the people are the soul of this performance, maintaining safe and reliable operations while continuing to deploy technologies that drive efficiency and value.

Operating Expansion in All Departments

Adnoc Drilling’s operational abilities are constantly expanding, and as of now, its fleet consists of 170 rigs across the GCC. This means it is the largest drilling fleet in the Middle East and North Africa regions. The company’s expansion has played an important role in generating income in all of its segments:

The onshore Drilling generated revenue of $477 million during the quarter. It was supported by eight land rigs operating in Oman and Kuwait after ADNOC Drilling acquired a 70 % stake in SLDC, a joint venture with Schlumberger (now SLB).

The offshore Drilling segment generated revenue of $345 million, helped by the purchase of two new jack-up rigs and the entry into operation during the second half of 2025 and ongoing rig conversion projects.

The company also received two AI-enabled island rigs that arrived from China during the quarter and are expected to gradually begin operations later in the year.

The Oilfield Services (OFS) sector has shown great results by generating an estimated revenue of $406 million. The increased revenue has been attributed to higher IDS activity, more deliveries of discrete services, and improved phasing for directional drilling and drilling fluids. It will remain as a significant part that contributed to growth, with higher activity levels and the application of technology-based services. The acquisition of the MBPS business was successfully completed in the last few days, positioning ADNOC Drilling for further drilling and oilfield services growth throughout the region.

Although the situation in the Gulf region has become highly tense, with disputes being witnessed near the Strait of Hormuz, Adnoc Drilling assured that there has been no significant effect on its financial and operational stability.

Adnoc Drilling also collaborated with Alpha Dhabi Holding to launch Enersol, a technology-focused venture. The aim is to invest $1.5 billion in technology-driven companies in the oilfield services sector. The company further mentioned it was buying an 80 per cent stake in Oman’s MB Petroleum Services.

ADNOC Drilling reaffirms its forecast for the full year, estimating around $5 billion in revenue and a net profit of between $1.45 and $1.5 billion for 2026. ADNOC Drilling plans to utilise about 70 rigs for integrated drilling services by the end of the year.

Amid the escalating tensions in middle-east, the global energy markets are facing a huge challenge. The situation is very unpredictable, completely dependent on geopolitical conflicts for the business to function in the Gulf region. However, the performance of Adnoc Drilling shows that size, diversity, and a strategic plan can neutralise such risks.

The opinion of the investors towards the company is positive due to reliable dividends and solid financial indicators. According to analysts, the combination of service operations offered by ADNOC Drilling builds a competitive edge for the business.  The blend of higher revenues, larger fleets, and the oilfield services industry makes sure that it is in a suitable position to meet its targets up to 2026.