16/08/2026
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16/08/2026
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KUWAIT CITY, Aug 16: Action Energy Company K.S.C.P. (AEC) (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, held its earnings webcast to discuss its financial results for the first half of 2026.
During the conference, senior management reviewed the Company's key financial and operational performance, the market fundamentals underpinning its business, and its outlook for the period ahead. The Company remains focused on strengthening its core drilling business in Kuwait, expanding into higher-value oilfield services, pursuing selective regional growth opportunities, and maintaining a strong financial position.
Market Fundamentals
Action Energy highlighted the strong fundamentals of the onshore drilling sector across Kuwait and the wider GCC. Kuwait benefits from one of the world's longest reserve lives at approximately 276 years, one of the industry's lowest lifting costs at around USD 8.5 per barrel, and among the lowest carbon intensities at approximately 8.5 kilograms of CO₂ per barrel. At the same time, national oil companies across the GCC continue to demonstrate resilience and a long-term commitment to expanding production capacity, supporting sustained rig demand through 2030.
The Company emphasized the Gulf's critical role in global energy security, underpinned by production strategies that extend beyond commodity price cycles. Most notably, Kuwait's ambition to increase crude oil production capacity to 4.0 million barrels per day by 2035. Against this backdrop, Action Energy reaffirmed its readiness to support the next phase of growth as Kuwait's leading local integrated upstream services provider and the owner and operator of one of the region's youngest drilling fleets. With an average fleet age of just 3.07 years, compared with approximately 15.9 years in Kuwait and higher averages across the GCC and wider MENA region.
Company Performance
Eng. Rawaf Bourisli, Vice Chairman of Action Energy, said: “In less than four years, Action Energy has grown from operating four rigs to twenty at full utilization, while building one of the youngest rig fleets in the region, delivering strong revenue growth, expanding margins, doubling net profit, and reducing leverage. This performance reflects the strength of the Company's business platform, underpinned by a modern fleet, a record contracted backlog, a strong financial position, and a long-standing strategic partnership with Kuwait national oil companies. As we enter the next phase of growth, we will continue to execute our strategy with the same financial and operational discipline that has defined the Company since inception, supporting sustainable long-term value creation for shareholders.”
Bourisli added: “Our contracted backlog of KWD 349 million remains the clearest indicator of the Company's strength. More than double its level a year ago, it provides long-term visibility over future revenue through contracted, Kuwaiti dinar-denominated business extending across multiple years. Despite regional challenges, our operations continued uninterrupted, reflecting the resilience of our business model and our ability to support the delivery of Kuwait's long-term energy objectives.”
Ivan Chikunov, General Manager, Services & Business Development, said: “The Company's next phase of growth is built on three strategic pillars. First, reinforcing its leadership in Kuwait by supporting Kuwait’s national plans to increase crude oil production capacity to 4.0 million barrels per day by 2035. Second, expanding and diversifying AEC oilfield services offering by leveraging the prequalifications already secured in electric submersible pumps (ESP), slickline, inspection (NDT), and once-through steam generator (OTSG) services, enabling the Company to execute these services independently. Third, pursuing selective expansion across GCC markets while evaluating merger and acquisition opportunities to capture the expected growth in drilling demand through 2030, supported by disciplined capital allocation and a conservative balance sheet.”
Jainuddin Jhabuawala, General Manager, Finance, said: “The key message is that we are delivering high-quality growth. Strong revenue momentum is translating into robust earnings and cash flow, while the IPO has strengthened our financial position and enhanced our capacity to create long-term shareholder value. Overall, Action Energy has maintained a de-risked, flexible balance sheet capable of funding future growth while preserving a strong and conservative financial profile.”
In H1 2026, Action Energy reported revenue of KWD 18.1 million, up 34.4% year over year, EBITDA of KWD 9.0 million, up 28.3%, and net profit of KWD 4.4 million, representing year-over-year growth of 96.6%.
