By: OrePulse

Action Energy, a Kuwaiti drilling and oilfield services company, reported a 62.9% rise in nine-month net profit for 2026, reaching 6.5 million Kuwaiti dinars, as the company prepares seven additional rigs to begin operations in Kuwait in the first quarter of 2027.

Nine-month revenue rose 18.5% to 26.9 million Kuwaiti dinars, while earnings before interest, tax, depreciation and amortization (EBITDA) increased 13.1% to 13.4 million Kuwaiti dinars, the company reported.

Kuwait Oil Company is Action Energy's customer under the rig contracts referenced in the results, the company said.

Third-quarter net profit climbed 20.3% to 2.1 million Kuwaiti dinars, even as quarterly revenue slipped 4.5% to 8.8 million Kuwaiti dinars and EBITDA fell 9.1% to 4.4 million Kuwaiti dinars. The company linked the quarterly declines in revenue and EBITDA to new rig lease rates agreed under an amended Kuwait Oil Company contract, along with higher administrative costs, fewer rig moves, and a one-off revenue item booked in the third quarter of 2025.

Unlike the nine-month figures, in which net profit, revenue and EBITDA all rose, the third quarter saw net profit increase while revenue and EBITDA both declined, a divergence the company attributed to the contract and cost factors it cited.

Under the amended agreement, Kuwait Oil Company has committed to deploying Action Energy's contracted rig fleet for a further five to six years, the company said.

Chairman Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah said the company's operating cash flow rose 73.8% over the nine-month period.

Action Energy operated 20 rigs at full utilization during the period, the company said. Its contracted backlog stood at 340.7 million Kuwaiti dinars, with drilling and workover services making up about 60% of that total. Oilfield services accounted for 40% of the backlog in the third quarter, up from 28% in the first quarter, according to the company.

Core drilling revenue rose 4.2% to 7.2 million Kuwaiti dinars, while income from rig leasing and ancillary services declined, the company said.

Seven additional rigs — four rated at 1,500 horsepower, one at 1,000 horsepower and two at 750 horsepower — are expected to start operations in the first quarter of 2027, the company said. Once in service, the new units would add to the 20 rigs the company already runs under contract with Kuwait Oil Company.

For the fourth quarter of 2026 and the first quarter of 2027, Action Energy said it plans to complete mobilization of the seven new rigs while targeting a net debt-to-equity ratio at or below 1.25 times.

The company did not disclose the monetary value of the amended Kuwait Oil Company contract, giving only its five-to-six-year duration. It also did not provide full-year 2026 financial guidance, and did not specify a value for the seven rigs due to start operations in the first quarter of 2027.