ADNOC Drilling Company has announced record-breaking financial results for the second quarter and first half of 2025, driven by fleet expansion, strong rig utilization, and robust growth in oilfield services (OFS).
The company also reaffirmed its commitment to shareholder returns and continued regional expansion.
In the first half of 2025, ADNOC Drilling reported revenue of $2.37 billion, up 30 percent year-on-year, while EBITDA reached $1.08 billion, marking a 19 percent increase. Net profit rose 21 percent to $692 million, as the company delivered solid performance across all segments and maintained strong profitability.
In the second quarter of 2025, ADNOC Drilling’s board of directors approved a $217 million second quarterly dividend (approximately 5 fils per share), reinforcing the company’s progressive dividend policy.
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The dividend will be paid in the second half of August to shareholders of record as of August 8, 2025. With two dividends declared so far this year and a third expected later in 2025, ADNOC Drilling continues to deliver reliable and growing returns to shareholders.
Abdulla Ateya Al Messabi, ADNOC Drilling CEO, said: “Our record first half 2025 results once again demonstrate the strength, resilience, and scalability of ADNOC Drilling. We continue to deliver outstanding financial performance, dependable shareholder returns and disciplined regional expansion, all underpinned by our commitment to deploying AI and advanced technologies.
“With this momentum, we are firmly on track to achieving our full-year growth targets. ADNOC Drilling has consistently demonstrated its ability to grow in any phase of the energy cycle. With high and visible cash flows, growing earnings and strong visibility of future returns, we remain confident in our ability to continue delivering long-term value to our shareholders.”
Strong segmental performance in 1H 2025
The Onshore segment reported $1.0 billion in revenue, an 18 percent increase year-on-year, driven by new rigs coming online and a $79 million contribution from the unconventional business.
The Offshore segment (including jack-up and island rigs) delivered $671 million in revenue, a 1 percent year-on-year increase, supported by island rig reactivations. Two new jack-up rigs are set to contribute fully from Q3 2025.
The Oilfield Services (OFS) segment saw standout performance, with revenue surging 127 percent year-on-year to $689 million. This growth was fueled by $265 million in unconventional business revenue, alongside increased integrated drilling services (IDS) activity and additional discrete services.
Strategic expansion and innovation
ADNOC Drilling continued to advance its regional footprint through a landmark agreement to acquire a 70 percent stake in SLB’s land drilling rigs business in Kuwait and Oman. The move gives ADNOC Drilling immediate access to two rigs in Kuwait and six in Oman, reinforcing its leadership in the GCC’s drilling and integrated services sector. The transaction remains subject to regulatory approvals.
The company’s technology platform Enersol progressed its strategic agenda in Q2 2025 by advancing local operations and expanding its tech presence across the UAE.
Notable developments included the growth of its Abu Dhabi hub and the launch of the Enersol Energy Challenge, a first-of-its-kind initiative to identify UAE entrepreneurs developing transformative energy technologies. Enersol continues to build a robust transaction pipeline, following four acquisitions to date.
Meanwhile, Turnwell, ADNOC Drilling’s specialist in unconventional drilling, achieved new milestones by delivering high-efficiency wells using advanced drilling techniques such as autonomous drilling. To date, Turnwell has drilled 58 of the 144 planned wells — over 40 percent completion — and fractured more than 20 wells, demonstrating strong execution and supporting the UAE’s unconventional resource development.
Record contract wins and market confidence
In 2025, ADNOC Drilling secured approximately $4.8 billion in new contracts — its strongest-ever backlog addition. These include long-term integrated drilling, oilfield, and rig services contracts, offering visibility on earnings through 2040 and beyond.
The company is now the most covered stock in the MENA region, with 20 global equity analysts tracking its performance. The majority maintain a Buy rating, signaling strong market confidence in ADNOC Drilling’s fundamentals and long-term value proposition.
Embracing AI and automation
ADNOC Drilling continues to integrate AI, automation, and advanced analytics across its operations to enhance safety, efficiency, and decision-making. During the most recent board of directors meeting, the company rolled out MEERAi, ADNOC’s proprietary AI tool, designed to support faster, smarter executive decision-making.
Upgraded 2025 financial guidance and medium-term targets
Following its record H1 results, ADNOC Drilling has upgraded its full-year 2025 financial guidance. It also reaffirmed its medium-term outlook, including:
- FY2026 revenue projected at approximately $5 billion
- Conventional drilling EBITDA margins expected to exceed 50 percent, with OFS margins ranging from 22–26 percent
- Net Debt/EBITDA leverage target capped at 2.0x
- Net working capital target at around 12 percent of revenue
- Annual maintenance CapEx of $200–$250 million (excluding growth CapEx)
- Fleet expansion target of 151+ rigs by 2028
ADNOC Drilling’s performance in 2025 continues to validate its long-term strategy, combining strong financial delivery with disciplined expansion, technology adoption, and value creation for shareholders across market cycles.
