11/11/2026
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11/11/2026
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KUWAIT CITY, Nov 11: Action Energy Company K.S.C.P. (AEC) (Boursa Kuwait Premier Market: 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 third quarter and nine-month period ended 30 September 2026.
Financial Review
For the third quarter of 2026, the Company reported a net profit of KWD 2.1 million, representing a robust 20.3% YoY growth. This strong performance underscores the resilience of the Company's core business activities. Looking at the broader period, the growth trajectory remains highly visible with net profit for the first nine months of 2026 surging 62.9% YoY to reach KWD 6.5 million.
EBITDA for the quarter stood at KWD 4.4 million, down 9.1% YoY. This contraction was primarily driven by revised rig lease rates under a new contract with Kuwait Oil Company (KOC). While impacting short-term margins, this contract secures the deployment of the contracted rigs for the next 5 to 6 years, ensuring the continuity of the Company's 100% fleet utilization rate.
Concurrently, EBITDA reflected a planned increase in G&A expenses. This increase is an investment in the Company’s near-term scaling, as it mobilizes seven new rigs and broadens its oilfield service lines. Additional headwinds included a lower volume of rig moves and the absence of a one-time revenue contribution recorded in Q3 2025.
Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, Chairman of Action Energy Company (AEC), said: “AEC delivered strong results for the first nine months of 2026, with record net profit of KWD 6.5 million and operating cash flow up 73.8% year-over-year. This performance reflects the strength of our business and puts us in a solid position to execute our long-term growth strategy. We continue to invest in our people, equipment, and capabilities to support Kuwait’s upstream oil and gas sector. Our focus remains on delivering long-term value for our shareholders, and strengthening AEC’s position as a trusted partner to Kuwait’s energy industry.”
Ahmad Mohammad Al-Ajlan, Board Member and Chief Executive Officer, said: “AEC delivered strong profitability through the first nine months of 2026, with third-quarter net profit rising 20.3% year-over-year to KWD 2.1 million. We continued to invest in expanding our operating capabilities, making steady progress on the mobilization of seven new rigs and the expansion of our oilfield service lines, supported by a contracted backlog of KWD 340.7 million. These investments will increase our operating capacity, broaden our service offering, and position us for the next phase of growth. We remain focused on safe, reliable execution, financial discipline, and delivering sustainable growth and long-term returns for our shareholders.”
Operational Review by Business Line
● Drilling Services
Drilling and workover services account for approximately 60% of the Company's total backlog, with Action Energy operating 20 rigs during the period. Core drilling revenue increased 4.2% YoY to KWD 7.2 million, while revenue from rig leasing, mobilization, and ancillary services declined. The decline was primarily driven by revised rental rates for certain rigs under a new contract with Kuwait Oil Company, which extends the contracted tenure of these assets for the next 5 to 6 years, together with lower rig-move activity and the absence of a one-off ancillary revenue item recorded in the comparative period. Mobilization for the deployment of seven new rigs (four 1,500 HP, one 1,000 HP, and two 750 HP) are progressing, with operations expected to commence in Q1 2027.
· Oilfield Services
Oilfield Services’ contribution to backlog rose from 28% in Q1 to 40% in Q3 2026, an increase of 12 percentage points, reflecting the Company’s focus on continued strategic expansion into higher-value service lines, which strengthens the diversification of its revenue streams and deepens its integration across the upstream value chain. During the nine-month period, the Company continued to advance the mobilization of its electric submersible pumps (ESP), Slickline and once-through steam generator (OTSG) service lines in line with the planned schedule.
Business Outlook
AEC’s strategic priorities for Q4 2026 and Q1 2027 are to continue executing the KWD 340.7 million backlog and complete the mobilization of the seven new rigs, receive new oilfield services equipment, while maintaining safe and reliable operations across the 20-rig fleet, managing liquidity, leverage and remaining capital expenditure with net debt to equity kept at or below 1.25x, converting the backlog into profitable revenue, and selectively pursuing profitable opportunities in the digital space.
AEC continues to monitor regional developments closely while maintaining its focus on delivering high-quality services and creating long-term value for its shareholders.
