Action Energy Company Reports H1 2026 Financial Results
Action Energy Company K.S.C.P. (AEC), listed on the Premier Market of Boursa Kuwait, has announced its financial results for the first half of 2026, which ended on June 30. The company, recognized as Kuwait's leading local partner for integrated upstream services and owner of one of the youngest rig fleets in the region, reported a significant increase in its financial performance.
Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, AEC Chairman, commented that the results for the first half of 2026 demonstrate the resilience of the company’s business model. AEC's net profit nearly doubled year-over-year, and its contracted backlog with Kuwait Oil Company (KOC) reached a record $1.1 billion. The Board has recommended an interim cash dividend of 3 Fils per share, emphasizing the company’s commitment to delivering sustainable returns and supporting Kuwait's long-term energy goals.
Ahmad Mohammad Al-Ajlan, Board Member and CEO, stated that the results reflect the successful execution of AEC's growth and diversification strategy. Revenue for the period increased by 34.4%, while net profit rose by 96.6% year-over-year. The company noted that its record backlog, ongoing fleet expansion, and the growing contribution from its oilfield services segment provide a robust foundation for future growth and value creation.
In its operational review, AEC indicated that drilling and workover services account for approximately 61% of its backlog. The company operated 20 rigs at full utilization, completing 202 rig moves compared to 100 in the first half of 2025. Drilling revenue increased by 39% to $45.21 million, while revenue from rig leasing and mobilization grew by 13.8% to $10.44 million. Meanwhile, oilfield services account for about 39% of the backlog, and AEC invested $17.8 million in expanding its service lines, which include ESP, Slickline, and OTSG. Additionally, the company has entered into a strategic joint venture with Kellton aimed at driving AI-led digital transformation in the GCC energy sector.
The Board has recommended an interim cash dividend of approximately 10 cents per share for the six-month period ending June 30, 2026, amounting to a total distribution of about $5.5 million, marking AEC's first interim cash dividend. Looking ahead, AEC is entering the second half of 2026 with strong revenue visibility and full fleet utilization. Company priorities include mobilizing its service lines and seven new rigs, executing its record backlog, and maintaining financial discipline. AEC aims for a medium-term target mix of around 60% drilling and 40% oilfield services, with a goal of maintaining net debt to equity below 1.25x.