ADNOC Drilling has highlighted record financial results and a new operating approach as it appeared at ADIPEC, according to figures cited alongside analyst commentary from etoro.
The company reported record nine-month revenue of $3.7 billion and net profit of $1.07 billion. etoro analyst Nagham Hassan said the more important development is ADNOC Drilling’s strategy, not only the headline numbers.
Quarterly performance: unconventional slowdown
ADNOC Drilling’s third-quarter revenue slipped by 1%. The decline was attributed to a planned slowdown in unconventional drilling, described as tighter-rock wells that require fracturing. For this segment, revenue fell by more than half, while other parts of the business grew by around 7% in the quarter.
According to the release, oil and gas fields are developed in stages, and the company had previously flagged a quieter year for unconventional work before it began. The CFO, as cited in the release, said activity should pick up significantly in 2027 once ADNOC signs off the next phase of development, suggesting the dip relates to the timing of projects rather than weaker demand for the firm’s services.
Drill-to-Operate: expanding across a well’s life cycle
Beyond near-term activity levels, the company emphasized its Drill-to-Operate strategy. Under the approach, ADNOC Drilling aims to cover more of a well’s lifecycle, moving from drilling through completion and maintenance and into support for production.
The announcement states that services provided across the lifecycle can generate income for years after drilling ends, which management says could broaden and steady earnings. The strategy also aligns with ADIPEC’s focus on technology and improving output from existing resources, the release notes.
ADNOC Drilling is already using AI-enabled rigs, and it added 30 land rigs in Oman and Kuwait during the year, as stated in the provided materials.
Dividends, cash flow, and profit guidance
Shareholders received what the company described as a bonus: an extra one-off payment is said to lift the firm’s expected 2026 dividend to $1.225 billion, which the release describes as more than a fifth higher than last year. The payment is described as subject to shareholder approval of the second instalment.
Free cash flow, however, is reported to be running below last year after the company built up inventory during regional disruption. The release adds that ADNOC Drilling said its long-term contracts should allow it to recover most of the added cost from customers.
It also said management narrowed its full-year profit guidance to the lower end of the range it provided in July, while indicating confidence in cash generation. The materials did not provide specific new guidance figures beyond the range reference.
What markets will watch next
etoro’s analyst commentary pointed to the next phase as the key test of the strategy: whether Drill-to-Operate results in new contracts, alongside signs that unconventional activity returns in 2027. The release also references watchpoints including further service agreements beyond the UAE and the arrival of additional rigs on schedule.
