MENA Oil Services "UAE on track, KSA activity yet to rebound - 2Q Preview"...

Research evidence excerpt

MENA Oil Services "UAE on track, KSA activity yet to rebound - 2Q Preview"...

Global Research

3 July 2026ab

MENA Oil Services Equities

Europe including UKUAE on track, KSA activity yet to rebound - 2Q

Preview Oil Drilling, Equipment & Services

Anna Kishmariya

Analyst

anna.kishmariya@ubs.com

We make limited changes to the MENA drillers' models ahead of 2Q results and +44-20-7568 7999

reiterate our rating and price targets for Adnoc Drilling (Buy, PT AED7) and

Henri Patricot, CFA

Arabian Drilling (Buy, PT SAR101). With a MoU signed between Iran and the

US, we expect activity to rebound in the MENA region and hence maintain our henri.patricot@ubs.com

positive view for OFS plays. For Adnoc Drilling we expect ~ similar q/q result +33-14-888 3033

and continue to see unconventional phase II FID for gas among key catalysts for

Joshua Stone

this year, while any upside post UAE exit from OPEC will likely materialise only

after 2027. For Arabian Drilling we expect 2Q to come as a low point following joshua.stone@ubs.com

March suspensions but see near-term catalysts in sight including LSTK order +44-20-7901 5588

(expected by end-summer) and likely restart of suspended offshore rigs.

Jon Peace

Adnoc Drilling preview - similar q/q performance jon.peace@ubs.com

+44-20-7567 0638

Adnoc Drilling will report 2Q results late July (date TBC). A major development for the oil

market was the UAE's decision to leave OPEC+ announced in late April. Adnoc Drilling Leo Currie

as the sole drilling provider for ADNOC HQ would be the key long-term beneficiary if the Associate Analyst

move resulted in the increase of crude production capacity targets. At this stage, leo.currie@ubs.com

+44-20-7567 0642

however, the UAE takes a balanced approach reiterating 5Mb/d target by 2027.