ADNOC Drilling Approves $350 Million Distribution for Third Quarter of 2026
Key Facts
ADNOC Drilling’s board approved a total distribution of $350 million for the third quarter of 2026, equivalent to about 8.0 fils per share, according to the distribution policy published on the company’s website. The amount includes a base distribution of $262.5 million, plus $87.5 million representing the first tranche of an estimated additional distribution totaling $175 million. The second tranche, valued at $87.5 million, remains subject to shareholder approval. The company said the estimated distribution reflects disciplined capital allocation and the board’s confidence in its cash-generation capacity and long-term prospects. This means part of the quarter’s payments is tied to an additional distribution above the annual base floor approved by the company.
If shareholders approve the second tranche, total expected distributions for 2026 will rise to $1.225 billion, up 22.5% from total distributions in 2025. That total would be above the base distribution floor of $1.05 billion for the current year, which forms the foundation of the annual policy. The policy provides for that floor to increase by at least 5% annually through at least 2030. The company expects the base floor for fiscal year 2027 to be about $1.10 billion. This framework distinguishes the rising base distribution from estimated additional distributions decided by the board and, in this case, subject to shareholder approval.
The annual increase policy dates to the company’s annual general meeting held on 1 April 2026, when shareholders approved a minimum annual increase of 5% through at least 2030, alongside the final distribution for the fourth quarter of 2025. That distribution was $250 million, bringing the company’s announced total for 2025 to $1 billion. In July, the company said the quarterly distribution of $262.5 million for the second quarter lifted announced first-half distributions to $525 million. It said free cash flow supported those payments. The third-quarter base distribution therefore maintains the quarterly level announced in the first half, while the estimated tranche adds an amount above that level.
ADNOC Drilling reported revenue of $2.46 billion in the first half of 2026, up 4% year on year, while net profit rose 2% to $706 million. In the second quarter alone, revenue reached $1.23 billion, up 3% from the corresponding period, and net profit was $359 million, up 2%. The company attributed its first-half performance to growth in oilfield services, disciplined execution and a largely contracted revenue base. Chief Executive Abdullah Attiya Al-Masaabi said oilfield services growth is accelerating and that technology and artificial intelligence are enhancing efficiency and performance. The company also reaffirmed its fiscal 2026 guidance, with revenue of about $5 billion and net profit of between $1.45 billion and $1.50 billion.
As part of its operational expansion, the company said the AI-powered AD-300 automated drilling rig was deployed ahead of schedule. It added that five additional island rigs are planned and are expected to support offshore expansion and future revenue growth. At the annual general meeting, Chairman Sultan Al Jaber said approval of the 2025 distributions and an increase in the 2026 minimum distribution reflected confidence in the company’s strategy, discipline and long-term value, supported by visibility on future cash flows. The statement places the distribution policy within the board’s view of cash flows, while the company links growth in its services to technology and expansion of its offshore operations. The board did not specify a separate date for a vote on the second tranche in the details set out in the distribution policy.
The company set 5 November 2026 as the record date for distribution entitlement, with the first tranche to be paid in the second half of November. The additional second tranche remains subject to shareholder approval, with any payment expected in 2027. The company’s financial calendar listed the third-quarter results announcement on 27 October 2026 among its latest announcements, rather than upcoming dates. The calendar gives 11 February 2027 as a preliminary date for the announcement of fourth-quarter 2026 results. It also lists ADIPEC from 2 to 5 November 2026, ahead of the listed annual results announcement.