ADNOC Drilling: 2Q26 Preview: Broadly in Line with 1Q

Research evidence excerpt

ADNOC Drilling: 2Q26 Preview: Broadly in Line with 1Q

United Arab Emirates | Oil Services & Equipment

ADNOC Drilling EquityJulyResearch10, 2026

ESTIMATE CHANGE2Q26 Preview: Broadly in Line with 1Q

Into 2Q26 results (30 July) we are broadly in line to consensus, with 1H26 RATING BUY

guided at $2.44bn revenue, $1.05bn EBITDA, $0.69bn net income. OFS will PRICE AED5.79^

see lower 2Q unconventional revenue, likely offset by higher Onshore Drilling PRICE TARGET | % TO PT AED6.70 | +16%

following completion of MBPS acquisition in May. ADNOC Drilling saw "no 52W HIGH-LOW AED6.67 - AED4.51

material disturbance to operation in April & May...will continue to see the same FLOAT (%) | ADV MM (USD) 16.5% | 17.17

resilience" [as 1Q]. Focus at results likely on Unconventional Phase 2 FID MARKET CAP AED92.6B | $25.2B

timing. TICKER ADNOCDRI UH

^Prior trading day's closing price unless otherwise

noted.

2Q26 broadly similar to 1Q. Comments on the 1Q26 results call guided 1H26 "revenue expected

around $2.44 billion, EBITDA of $1.05 billion, and net income of $0.69 billion" implying group 2Q

results broadly similar to 1Q26. At the segment level, OFS will see a lower contribution from FY (Dec) CHANGE TO JEFe JEF vs CONS

unconventional "reflecting the scheduled phasing of our clients' 2026 programs" resulting in c. 2026 2027 2026 2027

$50m lower revenue q/q, expected to be offset by higher Onshore revenue given "a slight REV* <1% <1% +1% -2%

advantage of having a month and three weeks of MBPS". At the segment level, we are +2% above EPS NA NA NM +1%

cons. on Onshore Drilling EBITDA, but -2% for Offshore Drilling. We are 6% higher on net debt

at 2Q26e and +14% q/q, following dividend payments of $512.5m ($250m in respect of 4Q25 2026 ($) Q1 Q2 Q3 Q4 FY

+ $262.5m in respect of 1Q26).