ADNOC Drilling

A drilling-services company, not the owner of ADNOC’s reserves

As of: 2026-06-30

ADNOC Drilling Company PJSC, listed on ADX as ADNOCDRILL, was incorporated in 1972. It supplies drilling and well-construction services for conventional and unconventional reservoirs and hires out land and offshore rigs. Its economics depend on contracts, activity and service delivery, rather than direct ownership of the oil and gas sold by its customers.

The business combines onshore drilling, offshore jack-up and island operations, and Oilfield Services (OFS). Integrated Drilling Services (IDS) combines drilling with additional well services. Wider service coverage can increase revenue per customer relationship, but a larger fleet does not by itself establish higher margins or cash returns. ADNOC’s upstream fields and reserves are not assets of this listed drilling company.

Shareholding and control

As of: 2026-06-30

At 30 June 2026, XRG PJSC held 78.5%, Baker Hughes Holding SPV Ltd. held 5%, and other institutional and retail investors held 16.5%. XRG is wholly owned by ADNOC. The accounts explain that the transfer of the holding to XRG was an internal reorganisation: ADNOC retained governance control and remains the parent. Direct shareholding and ultimate control therefore need to be described separately.

The interim statements name Sultan Ahmed Al Jaber as chairman, Abdulla Ateya Al Messabi as chief executive and Youssef Samy Salem as chief financial officer. These are reporting-date roles. The strategic shareholder relationship is commercially important, but it does not remove minority-shareholder, customer-concentration or financing risks.

Subsidiaries are not interchangeable with joint ventures

As of: 2026-06-30

ADH RSC LTD is the wholly owned holding platform. The interim subsidiary schedule includes SLDC Holding RSC LTD and MBPS Holding RSC LTD. Their outside shareholders create non-controlling interests in consolidated earnings. A controlling holding is not equivalent to owning all of the economics.

ENERSOL and Turnwell are separately disclosed as joint ventures, despite majority percentage interests. The accounts recognise the group’s share of their results and an investment carrying value, rather than adding all their revenue to consolidated sales. ENERSOL’s partner is Alpha Dhabi Energy Holding; Turnwell’s agreements involve Eastern Echo FZE and Patterson-UTI UAE LLC. The table is a selected reporting-date structure, not a complete current legal register.

Fleet, geography and operating definitions

As of: 2026-06-30

The June 2026 fleet comprised 171 rigs: 141 in Abu Dhabi and 30 regional rigs outside the UAE. The domestic fleet comprised 92 onshore and 49 offshore rigs. Regional additions came from the SLDC and MBPS transactions; the reporting perimeter is therefore broader than a purely Abu Dhabi fleet.

The issuer reported 99% domestic owned-fleet availability and 394 domestic wells drilled during H1 2026. Neither measure covers the regional fleet. IDS covered 61 rigs at quarter-end, while at least one discrete OFS service was provided to another 53 rigs. These service-coverage measures must not be added to owned-rig counts.

MBPS has operations in Oman, Kuwait, Saudi Arabia and Bahrain. That operating footprint is not a disclosed country-by-country revenue mix: the financial statements say the group operates primarily in the UAE and do not provide a further geographical analysis of revenue.

Annual and half-year results

As of: 2026-06-30

The table retains reported USD thousands without rescaling. FY figures cover twelve months; H1 covers the six months ended 30 June, not the second quarter alone. The annual consolidated accounts are audited. The H1 consolidated information is unaudited, prepared under IAS 34 and reviewed under ISRE 2410; the reviewer does not express an audit opinion.

Revenue and group profit increased in both the annual and half-year comparisons. Management links the latest growth to regional acquisitions and drilling/services activity, partly offset by lower unconventional phasing. Since acquired businesses entered the perimeter, the change is not a like-for-like organic growth measure.

H1 2026 group profit of 705,545 includes non-controlling interests of 3,663; profit attributable to owners of the company is 701,882, all in USD thousands. The group-profit headline must not be presented as earnings entirely belonging to listed-company shareholders. Doubling H1 would also not constitute an issuer annual forecast.

Debt, cash and refinancing

As of: 2026-06-30

At 30 June 2026 cash and cash equivalents were USD 355,423 thousand and borrowings were USD 2,468,779 thousand. Borrowings include accrued interest and are net of transaction costs; leases and other financial liabilities are separate. This is not a total-liabilities figure.

The borrowing note lists the C/D facilities maturing in November 2027 and E/F in October 2030. Current borrowings were USD 1,221,269 thousand and non-current borrowings USD 1,247,510 thousand. Contractual facility dates should not replace the balance sheet’s current/non-current classification.

Current liabilities exceeded current assets by USD 434,817 thousand. Management identified no material going-concern uncertainty, citing undrawn facilities and forecast operating cash flows. That assessment does not eliminate working-capital pressure: cash collection, investment and dividend commitments still compete for liquidity.

Completed acquisitions and rigs still to arrive

As of: 2026-07-30

The SLDC transaction closed in early January 2026, adding eight regional land rigs; the MBPS transaction closed in early May 2026, adding 22. These are completed transactions, not merely announced proposals. Their inclusion changes the fleet and earnings perimeter and creates integration and minority-interest considerations.

AD-300 was delivered and accepted in June 2026. The July management report expected another island rig to begin operations around mid-Q3 and further deliveries during 2027. Those expectations are dated plans, not confirmation that the remaining rigs are operational as of this profile. The report also describes a post-period organic deployment to Oman through the MBPS platform.

Growth targets and dividend conditions

As of: 2026-07-30

Management’s July outlook prioritises OFS, IDS, regional expansion and automation. Its FY2026 guidance includes approximately USD 5 billion revenue and cash capital expenditure excluding acquisitions of USD 0.6–0.8 billion. These are management targets, not realised results or editorial estimates. Execution depends on demand, rig deliveries and the timing of unconventional work.

The approved policy sets a USD 1.05 billion dividend floor for FY2026, with at least 5% annual growth through at least 2030. The report describes the Q2 dividend as approved with an expected payment date; this profile does not certify payment. Future dividends remain dependent on distributable reserves, investment needs, profits and approvals.

Editorial interpretation: the investment question is whether broader services and regional assets can produce cash after equipment spending and financing costs. A dividend policy provides a capital-allocation framework, not a guaranteed return or a valuation conclusion.

What can disrupt the business model

As of: 2026-06-30

Editorial risk assessment: concentration in ADNOC-related customers links activity and collection to their investment and operating schedules. Regional expansion diversifies locations but introduces integration, local execution and geopolitical exposure. Different fleet perimeters and acquisition dates make simple year-on-year rig or profit comparisons less informative.

Equipment reliability, safety, maintenance and delivery delays can constrain revenue. A large contracted base does not prevent changes in the timing of unconventional services. Borrowing costs, inventory build and unbilled customer balances can weaken cash conversion even when accounting profit rises.

Technology and environmental-efficiency statements are issuer claims, not independently proven benefits in this profile. No target price, buy/sell recommendation or extrapolated return is supplied; those require a separate valuation and investor-specific decision.

Official contacts and source dates

As of: 2026-08-31

The official website is https://www.adnocdrilling.ae and the investor-relations contact form is linked in the sources. The July 2026 management report publishes the business IR addresses mcominelli@adnoc.ae, akamel@adnoc.ae and maelashry@adnoc.ae. The registered postal address in the accounts is P.O. Box 4017, Abu Dhabi, UAE.

Financial and ownership snapshots are dated 30 June 2026 unless otherwise labelled; annual results are for FY2025. The official results index checked on 31 August 2026 lists H1 2026 as the latest interim release. Page references below refer to physical PDF pages. This original business profile complements the existing dated review and does not certify that every July project plan or expected payment has since occurred.

Sources

1. S1 · ADNOC Drilling consolidated financial statements FY2025 · 2025-12-31
2. S2 · ADNOC Drilling condensed consolidated financial information H1 2026 · 2026-06-30
3. S3 · ADNOC Drilling Q2 2026 management discussion and analysis · 2026-07-30
4. S4 · ADNOC Drilling investor relations contacts · 2026-08-31
5. S5 · ADNOC Drilling results and presentations index · 2026-08-31