Adnoc Drilling Company PJSC | Europe Off the 2Q26 Call

Research evidence excerpt

Adnoc Drilling Company PJSC | Europe Off the 2Q26 Call

Update

July 30, 2026 01:31 PM GMT

Morgan Stanley & Co. International plc+MAdnoc Drilling Company PJSC | Europe Ricardo Rezende, CFA

Equity Analyst

Off the 2Q26 Call Ricardo.Rezende@morganstanley.comGiulia Faro +44 20 7677-9886

Research Associate

Giulia.Faro@morganstanley.com +44 20 7425-7581

Bottom line: neutral. Management reaffirmed FY26 guidance and framed 2027 as

Sylvia C Richards

low-to-mid-single-digit revenue growth with EBITDA margins around 2026 levels, Research Associate

supported by contracted island-rig additions, the OFS ramp-up and annualisation of Sylvia.Richards@morganstanley.com +44 20 7677-3354

the regional businesses. Q&A focused on regional returns, the shift of capex into Adnoc Drilling Company PJSC (ADNOCDRILL.AD,

2027 and the timing of unconventional Phase 2; further rig redeployments, regional ADNOCDRI UH)

M&A and unconventional present upside to guidance. EEMEA - Oil & Gas | United Arab Emirates

Stock Rating Overweight

Regional expansion and rig redeployment. On the potential to move additional Industry View No Rating

older Abu Dhabi rigs into Oman and Kuwait, management indicated it is pursuing Price target AED 7.00

Shr price, close (Jul 30, 2026) AED 5.75

opportunities both directly and through SLDC and MBPS. The remaining repurposed 52-Week Range AED 6.67- 4.51

rigs could be used for lighter domestic work, deployed regionally, swapped into an Mkt cap, curr (mn) US$25,049

Net debt (12/26e) (mn)* US$1,931

unconventional ramp-up or sold for a different use or geography. Only the Oman rig EV, curr (mn)* US$26,883

is currently contracted; all other redeployments remain outside FY26 and 2027 * = GAAP or approximated based on GAAP

guidance.

Regional returns.