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ADNOC Drilling has announced record financial results for the fourth quarter and full year 2025, with net profit reaching 5.3 billion dirhams for the year ended December 31, 2025. The company reported an 11% year-on-year growth in net profit and a 22% increase in revenues to 18 billion dirhams, according to the announcement made in Abu Dhabi. The ADNOC Drilling financial results were driven by strong growth in core operations in Abu Dhabi and increased oilfield services activity.
The board of directors recommended dividend distributions of approximately 917 million dirhams (250 million dollars) for the fourth quarter of 2025. Total dividend distributions for the 2025 financial year reached 3.67 billion dirhams (1 billion dollars), with an annual minimum floor set at 3.85 billion dirhams (1.05 billion dollars) for 2026 distributions.
Strong ADNOC Drilling Financial Results Across Key Metrics
The company reported that earnings before interest, taxes, depreciation, and amortization rose to 8.1 billion dirhams, marking a 9% year-on-year increase. Free cash flow, excluding mergers and acquisitions, surged to 5.4 billion dirhams, representing a substantial 62% increase on an annual basis. The return on equity ratio reached 35%, demonstrating exceptional capital efficiency.
ADNOC Drilling stated that the 2025 performance represents the strongest in its history. This achievement was attributed to high operational efficiency of assets, continued growth in integrated drilling services and oilfield services, and distinguished execution of operations across all fleet segments.
Executive Commentary on Record Performance
Abdullah Attia Al Mussabi, Chief Executive Officer of ADNOC Drilling, commented on the results. He stated that 2025 marks the beginning of a new phase for the company, achieving its best results through the efforts and strict commitment of its workforce to the highest safety standards. Al Mussabi emphasized that the company’s personnel represent the fundamental pillar behind every success achieved.
The CEO added that efforts continue to make ADNOC Drilling the most advanced energy company in the region. This goal will be pursued through excellence in execution, raising efficiency levels via integration of advanced technology, and maintaining a disciplined approach to capital allocation and operations management. He noted the company’s expansion into Gulf Cooperation Council markets and enhanced operations leveraging artificial intelligence solutions.
Dividend Policy Reinforces Shareholder Value
The board recommended fourth-quarter 2025 dividend distributions valued at 250 million dollars, equivalent to approximately 5.7 fils per share. The distribution is expected to occur in the second half of April 2026. All announced dividend distribution decisions are subject to shareholder approval at the company’s annual general assembly meetings.
The board set the minimum annual dividend distributions for 2026 at 1.05 billion dollars. This decision confirms the company’s ongoing commitment to annual growth adopted in its distribution policy and demonstrates the strength of its cash flows and solid financial position. Additionally, the company maintains its multi-year framework targeting total dividend distributions of no less than 6.8 billion dollars for the period between 2025 and 2030.
ADNOC Drilling had announced during the ADNOC Investors Council event in October 2025 the adoption of this multi-year dividend framework. The cumulative implicit yield exceeds 28% based on market data updated as of February 11, 2026, according to company statements.
Onshore and Offshore Drilling Segment Performance
The onshore drilling services segment saw revenues increase by 8% year-on-year to reach 7.5 billion dirhams. This growth resulted from the positive impact of full contribution from rigs that began operations in the previous year and unconventional drilling activities. The strong performance reflected precision in operational execution, including a Middle East achievement of drilling a complete horizontal mile in one day.
Offshore services segment revenues, including offshore drilling and artificial islands, reached 5.1 billion dirhams with a 6% year-on-year increase. This growth was achieved through converting two rigs from onshore to offshore operations during the 2025 financial year, alongside the positive impact of two offshore rigs that entered service at the end of the second quarter.
Oilfield Services Drive Revenue Growth
The oilfield services segment generated revenues of 5.4 billion dirhams, marking an impressive 80% year-on-year increase. The substantial growth was driven by increased activity volume resulting from continuous expansion in integrated drilling services and additional separate services, alongside annual increases in unconventional drilling activities. The integrated drilling services sector represents a key pillar in the company’s growth strategy.
ADNOC Drilling secured new contracts exceeding 18.36 billion dirhams in value during 2025. These contracts provide clear revenue visibility extending to 2040 and confirm customer confidence in the company’s capabilities, operational scale, and execution quality. The agreements demonstrate the company’s ability to complete complex projects efficiently with the highest levels of safety and reliability over the long term.
Technical Achievements Set New Industry Standards
The company successfully drilled the world’s longest well reaching a depth of 55,000 feet. This achievement utilized extended-reach drilling technology for the first time from artificial islands, according to company reports. Drilling operations commenced on ADNOC’s innovative artificial islands with ultra-long horizontal lengths and complex trajectories.
Operations were executed with the highest levels of safety and efficiency using drilling systems supported by digital solutions and advanced artificial intelligence technologies. This accomplishment followed the achievement of drilling 5,332 feet, equivalent to a complete mile, within 24 hours. The milestone reflects the high levels of operational excellence of the company’s fleet and sets a new standard for drilling speed and efficiency in the Middle East.
ADNOC Drilling expects to enhance its outstanding financial performance in 2026 across key segments, with forecasts based on continued operational excellence momentum and technology-enhanced efficiency. The company anticipates leveraging stable core operating costs, high utilization rates, and ongoing operational efficiency gains to convert stable activity levels into strong and flexible cash flows.
