By: AGBI

Adnoc Drilling, the listed subsidiary of state-backed Abu Dhabi National Oil Company (Adnoc), will pay a dividend for the second quarter of 2026, buoyed by rising offshore rig activity that lifted revenue.

The company said in a statement to the Abu Dhabi Securities Exchange that the $263 million dividend will be paid in August.

Total dividends for the first half of the year will reach $525 million — half of the company’s $1.05 billion annual dividend floor — which rises by at least 5 percent each year through to at least 2030.

The payout is supported by second-quarter free cash flow of $297 million and what the company described as effective capital allocation.

Revenue rose 3 percent year on year to $1.2 billion in the quarter ended June 30, helped by the contribution of 30 land rigs in Oman and Kuwait and stronger growth in the oilfield services segment.

In June, Adnoc Drilling acquired a 70 percent stake in SLB’s oil drilling business in Oman.

Net profit rose 2 percent year on year to $359 million in the second quarter, supported by high fleet utilisation and uninterrupted operations.

The US-Iran war, which began on February 28, has often seen Tehran launch strikes against its Gulf neighbours, targeting oil and gas infrastructure.

Adnoc Drilling said net earnings and revenue for the first half of 2026 rose 2 percent and 4 percent, respectively.

It reaffirmed its full-year 2026 guidance, targeting the deployment of 70 rigs by year-end.

Shares in Adnoc Drilling, listed on the Abu Dhabi Securities Exchange since October 2021, closed 0.7 percent lower at AED5.75 on Wednesday. The stock is up 8 percent so far this year.

XRG, Adnoc’s international investment arm, owns 78.50 percent of Adnoc Drilling.