Action Energy delivered strong financial growth during the first half of 2026. The Kuwait-based energy company nearly doubled its net profit during the period.
Revenue reached KWD18.1 million for the six months ending June 30. That figure represents a 34.4 percent increase from the same period last year.
Meanwhile, EBITDA climbed 28.3 percent to KWD9 million. The company reported an EBITDA margin of 49.8 percent during the first half.
Net profit increased 96.6 percent to KWD4.4 million. Earnings per share also rose 29.5 percent to 7.72 fils.
The company also reported a record contracted backlog. Its backlog reached KWD349 million at the end of June.
This backlog provides visibility into future revenue over several years. Drilling services represented around 61 percent of the total backlog.
Oilfield services accounted for the remaining 39 percent. The figures highlight the company’s expanding presence beyond traditional drilling operations.
Action Energy operated 20 rigs during the first half. The company maintained 100 percent fleet utilization throughout the period.
Its teams completed 202 rig movements during the first six months. That figure more than doubled the 100 movements recorded during H1 2025.
The company also reported no health, safety, or environmental incidents. Strong operational performance supported the company’s financial results during the period.
Drilling services generated KWD13.99 million in revenue. That represents a 39 percent increase compared with the previous year.
Meanwhile, rig leasing and mobilisation revenue reached KWD3.23 million. This segment recorded growth of 13.8 percent during the first half.
Drilling and workover contracts represented approximately 61 percent of the backlog. These contracts have an average remaining duration of five years.
The company also continued expanding its oilfield services operations. Its portfolio includes electric submersible pumps, Slickline, and once-through steam generators.
Action Energy invested KWD5.5 million into these service platforms during the period. Additional operating revenue also increased substantially.
Revenue from ancillary and inspection services rose 60.8 percent. The figure reached approximately KWD850,000 during the first half.
Overall capital investment reached KWD20.5 million during the period. The spending supported fleet expansion and new oilfield service platforms.
Consequently, property, plant, and equipment increased to KWD142.7 million. The investment reflects the company’s strategy to expand its operational capacity.
Operating cash flow also showed strong improvement. Cash generated from operations rose 48.1 percent to KWD5.4 million.
The company also strengthened its balance sheet during the period. Net debt-to-equity improved to 0.84 times from 1.65 times.
The board also recommended the company’s first interim cash dividend. The proposed dividend stands at 3 fils per share.
The dividend would represent approximately KWD1.7 million in total payments. The recommendation reflects the company’s improved financial performance.
Additionally, the company announced a strategic joint venture with Kellton. The partnership will target artificial intelligence-driven digital transformation.
The initiative will focus on energy sector opportunities across the GCC. It represents another step toward expanding the company’s technology capabilities.
Looking ahead, management expects strong revenue visibility from its existing backlog. Full fleet utilization also supports its outlook for the remainder of 2026.
The company plans to mobilize seven new rigs during the second half. It will also deploy additional oilfield service platforms.
These platforms include ESP, Slickline, and OTSG operations. The company also plans to expand higher-value services across its portfolio.
Furthermore, management intends to maintain financial and operational discipline. It expects EBITDA margins to remain broadly consistent with previous guidance.
The company also targets a more diversified revenue structure over the medium term. Management expects drilling to contribute around 60 percent of revenue.
Oilfield services could account for approximately 40 percent. This target reflects the company’s broader diversification strategy.
Action Energy expects new service lines to support future growth. Additional rigs should also increase its capacity to serve customers.
The record backlog provides further support for the company’s expansion plans. Long-term contracts can also provide greater visibility over future revenue.
The company continues positioning itself as a key energy services provider in Kuwait. Its expansion strategy also supports the country’s broader energy ambitions.
During the first half, Action Energy demonstrated growth across several financial measures. Revenue, profit, cash flow, and operational activity all increased.
The company also strengthened its balance sheet while expanding its asset base. Meanwhile, new service lines broadened its potential sources of revenue.
Action Energy’s performance reflects stronger demand across its core operating areas. Continued fleet utilization could support further growth during the second half.
The company now enters the remainder of 2026 with several expansion projects underway. These projects could increase capacity and strengthen its market position.
Overall, the first-half results show significant improvement across the company’s operations. Strong earnings and a record backlog provide a solid foundation for future expansion.
Action Energy will now focus on new rig deployments and service growth. It will also continue pursuing technology-driven opportunities across the regional energy sector.
