10/08/2026
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10/08/2026
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KUWAIT CITY, Aug 10: Action Energy Company K.S.C.P. (Premier Market Boursa Kuwait: ALFTAQA), Kuwait’s leading local partner for integrated upstream services, owner and operator of one of the youngest rig fleets in the region, today announced its financial results for the first half ended 30 June 2026.
Highlights
● Record contracted backlog of approximately KWD 349 million, split approximately 61% drilling services and 39% oilfield services, providing multi-year revenue visibility.
● Revenue grew 34.4% YoY to KWD 18.1 million, driven primarily by the full six-month contribution of the 10 new rigs deployed during 2025, with 20 rigs operating throughout the period compared to a partial-period contribution in the prior year.
● EBITDA increased 28.3% YoY to KWD 9.0 million, with an EBITDA margin of 49.8%, in line with the financial guidance provided at the time of the Company’s listing.
● Net profit nearly doubled, rising 96.6% YoY to KWD 4.4 million, reflecting the full-period contribution of the enlarged rig fleet and stable underlying operating margins.
● The Board of Directors recommended an interim cash dividend of 3 fils per share for the first half of 2026, amounting to approximately KWD 1.7 million, the Company’s first interim distribution, reflecting confidence in its earnings visibility and its commitment to consistent shareholder returns.
● Cash flow from operations rose 48.1% YoY to KWD 5.4 million, in line with the growth in profitability.
● KWD 20.5 million invested during the period in fleet expansion and new oilfield services platforms, with total property, plant and equipment reaching KWD 142.7 million.
● Net debt to equity improved from 1.65x to 0.84x YoY, with total equity exceeding KWD 86 million, reflecting a significantly stronger and more resilient capital structure.
● 202 rig moves were completed during the period, compared to 100 in H1 2025, with the fleet maintaining 100% utilisation and recording no HSE incidents.
Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, Chairman of Action Energy Company (AEC), said: "H1 2026 reflects the resilience of AEC's business model, with net profit nearly doubling year-on-year and our contracted backlog reaching a record KWD 349 million. In line with our commitment to delivering sustainable returns, the Board has recommended an interim cash dividend of 3 Fils per share. We remain committed to operational excellence, creating long-term value for our shareholders, and supporting Kuwait's long-term energy ambitions as a trusted national partner."
Ahmad Mohammad Al-Ajlan, Board Member and Chief Executive Officer, said: "H1 2026 confirms the scalability of our operations and the execution of our diversification strategy, with revenue up 34.4% and net profit up 96.6% year-on-year. During the period, the Company invested KWD 20.5 million in expanding its fleet and new service lines. Our contracted backlog reached a record of approximately KWD 349 million, with oilfield services now representing 39% of the total, reflecting the progress of our diversification into higher-value service lines. With expansion financing secured, seven new rigs under mobilisation, and new service lines coming onstream, the Company is well positioned for continued growth. We remain focused on creating long-term value for national oil companies, our partners, and our shareholders."
Operational Review by Business Line
Drilling Services
Drilling and workover services account for approximately 61% of the total backlog, with an average remaining contract life of 5 years. During H1 2026, Action Energy operated 20 rigs throughout the period, the fleet maintained 100% utilisation during the period, supported by disciplined preventive maintenance and operational standards in place since the Company’s inception. A total of 202 rig moves were completed during the half, compared to 100 in H1 2025, reflecting the full-period activity of the enlarged workover fleet and KOC’s drilling schedule. Drilling services revenue increased 39.0% YoY to KWD 13.99 million, while rig leasing and mobilisation revenue grew 13.8% to KWD 3.23 million.
Oilfield Services
Oilfield Services account for approximately 39% of the Company’s backlog, with an average remaining contract duration of 6–7 years. During H1 2026, the Company continued to advance the mobilisation of its electric submersible pumps (ESP), Slickline, and once-through steam generator (OTSG) service lines in line with the planned schedule, investing KWD 5.5 million across these platforms during the period. Other operating revenue, which includes ancillary and inspection services, increased 60.8% YoY to KWD 0.85 million. The continued build-out of this segment further strengthens the diversification of the Company’s revenue streams and deepens its integration across the upstream value chain.
Strategic Developments
The Company’s total contracted backlog reached a record of approximately KWD 349 million as at 30 June 2026, split approximately 61% drilling services and 39% oilfield services, reflecting the continued expansion of the Company’s oilfield services platform alongside its core drilling operations.
The Company also entered into a strategic joint venture (JV) with Kellton, a global AI-led digital transformation and enterprise technology company, to drive AI-led digital transformation across the Gulf Cooperation Council (GCC) energy sector.
Regional geopolitical developments during the period resulted in some increase in logistics and supply chain costs; however, business operations, contract execution and customer activities continued without material disruption, and no impairment indicators were identified.
Interim Dividend
The Board of Directors has recommended an interim cash dividend of 3 Fils per share for the six-month period ended June 30, 2026, representing a total distribution of approximately KWD 1.7 million, and marking the Company's first interim cash dividend.
Business Outlook
AEC enters the second half of 2026 with strong revenue visibility supported by a record multi-year contracted backlog with Kuwait Oil Company, full fleet utilisation, and a clear pipeline of new rig deployments and oilfield services contracts under mobilisation. The Company’s strategic priorities for the remainder of the year remain centred on the mobilisation of the ESP, Slickline and OTSG service lines and the seven new rigs, execution of the record backlog, fleet expansion and operational readiness, diversification into higher-value oilfield services, and maintaining financial discipline, safety and operational excellence.
AEC expects EBITDA margins to remain in line with the guidance provided at the time of listing as the contracted backlog is fully deployed and new rigs reach steady-state operations, with the ESP platform expected to carry an attractive margin profile. Over the medium term, the Company targets a revenue mix of approximately 60% drilling and 40% oilfield services, and intends to maintain net debt to equity below 1.25x. Outstanding capital commitments of KWD 23.2 million at 30 June 2026 are expected to be funded through undrawn approved bank facilities and operating cash flow. Action Energy continues to monitor regional developments closely while maintaining its focus on delivering high-quality services and creating long-term value for its shareholders.
