Kuwait-based Action Energy Company reported a sharp increase in earnings for the first half of 2026.
Revenue rose 34.4 per cent year on year to KWD18.1 million ($59
million) in the six months ended June 30, while EBITDA increased 28.3 per cent
to KWD9 million, with an EBITDA margin of 49.8 per cent.
Net profit nearly doubled, rising 96.6 per cent to KWD4.4
million, while earnings per share increased 29.5 per cent to 7.72 fils.
The company said its contracted backlog reached a record KWD349
million at the end of June, providing multi-year revenue visibility.
About 61 per cent of
the backlog comes from drilling services and 39 per cent from oilfield
services.
Action Energy operated 20 rigs throughout the first half,
compared with partial-period operations for its expanded fleet during the same
period last year.
Fleet utilisation remained at 100 per cent, with 202 rig
moves completed, more than double the 100 recorded in H1 2025.
The company reported no health, safety and environment
incidents.
Drilling services revenue increased 39 per cent to KWD13.99
million, while rig leasing and mobilisation revenue grew 13.8 per cent to KWD3.23
million.
Drilling and workover contracts account for approximately 61
per cent of the backlog, with an average remaining contract life of five years.
The oilfield services division continued expanding its
electric submersible pump (ESP), Slickline and once-through steam generator
(OTSG) platforms.
Action Energy invested KWD5.5 million in these businesses
during the period, while other operating revenue, including ancillary and
inspection services, increased 60.8 per cent to KWD850,000.
The company invested KWD 20.5 million in fleet expansion and
new oilfield service platforms during the first half, taking property, plant
and equipment to KWD142.7 million.
Operating cash flow rose 48.1 per cent to KWD5.4 million,
while net debt-to-equity improved to 0.84 times from 1.65 times a year earlier.
The board recommended the company’s first interim cash
dividend of 3 fils per share, equivalent to approximately KWD1.7 million.
Action Energy also announced a strategic joint venture with
Kellton to pursue AI-led digital transformation across the GCC energy sector.
Looking ahead, the company said it expects strong revenue
visibility from its record backlog, full fleet utilisation and new rig and
oilfield service deployments.
Priorities for the remainder of 2026 include mobilising
seven new rigs and the ESP, Slickline and OTSG platforms, expanding
higher-value oilfield services and maintaining financial and operational
discipline.
The company expects EBITDA margins to remain broadly in line
with its listing guidance, while targeting a medium-term revenue mix of
approximately 60 per cent drilling and 40 per cent oilfield services.
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 KWD349
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 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 per cent and net profit up 96.6 per cent
year-on-year. During the period, the Company invested KWD20.5 million in
expanding its fleet and new service lines. Our contracted backlog reached a
record of approximately KWD349 million, with oilfield services now representing
39 per cent 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." -OGN/TradeArabia News Service
