Abraj Energy raised its revenue forecast after stronger drilling activity boosted business performance during the second quarter of 2026. The company also reported higher rig utilization and continued expanding its operations across the region. Abraj Energy expects stronger demand to support growth during the remainder of the year.
The Oman-based drilling company increased its short-term revenue guidance following improved market conditions. Growing demand for drilling services supported the company’s latest outlook. Management now expects third-quarter revenue to increase between 5 percent and 10 percent after reporting second-quarter revenue of OMR39 million.
The company also upgraded its full-year revenue guidance. Management now expects annual revenue between OMR150 million and OMR160 million. Previously, the forecast ranged between OMR145 million and OMR155 million. The higher outlook reflects stronger operational performance and increasing customer demand.
Profit after tax also improved during the second quarter. Net earnings reached OMR4.9 million, representing a 10 percent increase compared with the same period last year. Meanwhile, first-half net profit remained steady at OMR9.3 million despite a 3 percent rise in revenue during the first six months of 2026.
Operational performance continued improving throughout the quarter. Rig utilization reached 91 percent by the end of June, marking the highest level recorded during the past 12 months. Higher customer activity helped keep more drilling rigs operating across the company’s fleet.
During the quarter, Abraj Energy launched two additional drilling rigs. One rig entered service in Kuwait, while another began operations in Oman. These additions expanded the company’s regional capacity and strengthened its ability to meet growing customer requirements.
The company’s contract backlog also reached a record OMR953 million. That figure represented a 6 percent increase compared with the previous quarter. A larger backlog provides stronger revenue visibility and highlights continued demand across regional energy markets.
Average daily drilling rates remained in the high $20,000 range throughout the quarter. Healthy pricing continued supporting overall financial performance. Company executives expect recently deployed rigs to contribute more revenue and profitability during the coming months.
Management also plans additional investments during the second half of 2026. Capital expenditure increased fourfold during the first half compared with the previous year. The company expects to invest between OMR30 million and OMR40 million before the end of the year. These investments will support fleet expansion and improve operational efficiency.
Oman’s energy sector also maintained positive momentum despite regional uncertainty. Crude oil production increased by 11 percent through June compared with the previous year, reaching approximately 1.1 million barrels per day. Natural gas production also rose by 7 percent during the same period.
The steady increase in energy production continues supporting demand for drilling services across the country. Energy companies remain focused on expanding exploration and production activities, creating additional opportunities for drilling contractors.
Investors also monitored the company’s market performance. Abraj Energy shares closed slightly lower at OMR0.355 during the latest trading session. Despite the daily decline, the stock remains supported by stronger operational performance and an improving business outlook.
Looking ahead, Abraj Energy expects recent investments and higher rig deployment to strengthen financial performance throughout the rest of 2026. Rising utilization, a record contract backlog, and expanding operations position the company for continued growth. Abraj Energy remains focused on increasing market share while delivering stronger long-term value for shareholders.
