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Kuwait — Action Energy Company K.S.C.P. (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, today announced its financial results for the first quarter ended 31 March 2026.
Key Financial Highlights
| KWD Millions | Q1 2026 | Q1 2025 | YoY % |
| Revenue | 9.1 | 5.4 | 69.2% |
| EBITDA | 4.6 | 3.0 | 53.6% |
| Net Profit | 2.2 | 0.9 | 150.0% |
| EPS (Fils) | 3.97 | 2.39 | 66.1% |
Highlights
- Revenue grew 69.2% year-on-year, primarily driven by the expansion of the operating rig fleet from 13 rigs in Q1 2025 to 20 rigs in Q1 2026, including the full-quarter contribution of 10 new rigs deployed during 2025.
- EBITDA increased 53.6% year-on-year to KWD 4.6 million, with EBITDA margin of 50.2% reflecting a change in revenue mix, while underlying margins on operating rigs remained stable across both periods.
- Net profit increased 150.0% year-on-year, reflecting the full-quarter contribution of the enlarged rig fleet, combined with lower finance costs following the conversion of convertible preference shares in October 2025.
- Cash flow from operations rose 179.5% year-on-year, in line with the strong growth in profitability.
- Net debt to equity ratio improved from 1.67x to 0.61x, reflecting a significantly stronger and more resilient capital structure following the capital increase, the conversion of preference shares, and the IPO completed in December 2025.
Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, Chairman of Action Energy Company (AEC), said: “The results of the first quarter of 2026 reflect the strength and resilience of our business model, with continued growth momentum supported by fleet expansion, high rig utilization, and a substantial multi-year contracted backlog with Kuwait Oil Company. Despite regional disturbances during the period, AEC delivered performance in line with expectations, ensured uninterrupted support to KOC operations, and continued to operate with safety as a core value. As we execute on our growth strategy, we remain committed to disciplined financial management, operational excellence, and creating long-term value for our shareholders, while reinforcing our position as a trusted national partner supporting Kuwait’s energy ambitions.”
Ahmad Mohammad Al-Ajlan, Board Member and Chief Executive Officer, said: “Q1 2026 demonstrates the operational scalability of our platform. With 20 operational rigs throughout the quarter, including the full contribution from the 10 new rigs deployed in 2025, we delivered strong revenue growth of 69.2% year-on-year. Our balance sheet has been significantly strengthened following the IPO, with net debt to equity improving from 1.67x to 0.61x. We have already secured awards for an additional 7 rigs announced in January 2026, with deployment progressing in line with schedule, positioning the Company for continued growth through 2026 and beyond.”
Operational Review by Business Line
Drilling Services
Drilling and workover services account for approximately 72% of the total backlog, with an average remaining contract life of 5 years. During Q1 2026, Action Energy operated 20 rigs throughout the quarter, comprising 2 rigs at 1,500 HP, 6 rigs at 750 HP, 2 new rigs at 550 HP, 8 new rigs at 750 HP, and 2 rigs at 3,000 HP. The fleet maintained 100% utilization during the period, supported by disciplined preventive maintenance and operational standards in place since the Company’s inception. A total of 103 rig moves were completed during the quarter, compared to 30 in Q1 2025, reflecting the full-quarter activity of the enlarged workover fleet.
Oilfield Services
Oilfield Services account for approximately 28% of the Company’s backlog, with an average remaining contract duration of 6–7 years. During Q1 2026, the Company continued to advance the mobilization of its electric submersible pumps (ESP), Slickline, and once-through steam generator (OTSG) service lines in line with the planned schedule, further strengthening the diversification of the Company’s revenue streams and deepening its integration across the upstream value chain.
Strategic Developments
In January 2026, Action Energy announced two contract awards from Kuwait Oil Company. The First contract of KWD 14.8 million, covers two rigs of 750 HP,expected from the second half of the year. The Second contract of KWD 62.1 million, covers four rigs of 1500 HP and one rig of 1000 HP, expected to start the operation from Q4 2026 and Q1 2027. Together, these awards bring the Company's rig fleet backlog to 27 rigs once fully mobilized.
The Company also continued to make progress on its broader oilfield services platform during the quarter, with continued mobilization across new service lines and ongoing engagement on additional pre-qualifications. Management has good visibility on KOC’s medium- to long-term drilling plans, supported by Kuwait’s production growth targets and existing multi-year contracts, and remains well placed to compete for upcoming tenders through 2027–2030.
Business Outlook
AEC enters the remainder of 2026 with strong revenue visibility supported by a substantial multi-year contracted backlog with Kuwait Oil Company, full fleet utilization, and a clear pipeline of new rig deployments and oilfield services contracts under mobilization. The Company’s strategic priorities for 2026 remain centered on three pillars: sustaining its leadership position in Kuwait’s onshore drilling market, expanding its oilfield services platform, and selectively pursuing growth opportunities across the GCC through partnerships and acquisitions of pre-qualified entities.
AEC expects EBITDA margins to normalize within a sustainable range of approximately 48%–50% as the contracted backlog is fully deployed and new rigs reach steady-state operations. The Company remains committed to disciplined capital allocation, with the capital expenditure required to support the new contract awards expected to be funded through a combination of bank financing and internal cash generation. Action Energy continues to monitor regional developments closely while maintaining its focus on delivering high-quality services and creating long-term value for its shareholders.
About Action Energy Company
Action Energy Company K.S.C.P (Boursa Kuwait: ALFTAQA) is Kuwait’s leading local partner for integrated upstream services and the owner-operator of one of the youngest and most technologically advanced rig fleets in the region. The Company employs more than 1,700 professionals and operates 20 rigs across Kuwait, delivering a comprehensive range of integrated drilling, workover, and oilfield services, covering the full well lifecycle, including workover, directional drilling, slickline, coiled tubing, cementing, mud engineering, electric submersible pumps (ESP), inspection (NDT), and workshop services.
Action Energy has established strategic partnerships with global technology leaders including KCA Deutag, CPVEN, COSL, Expert Optima, NaftoServ, TRG, Jereh, and Kerui. These partnerships support knowledge transfer, delivery of specialised high-value services, and continued expansion of the Company’s oilfield services capabilities. Founded in 2015, Action Energy is committed to strengthening its position as a leading provider of upstream services in Kuwait and across the GCC.
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Disclaimer
This press release contains forward-looking statements based on current expectations and assumptions of Action Energy Company K.S.C. Actual results may differ from those anticipated. The Company does not undertake any obligation to update forward-looking statements as a result of new information or future events. This press release does not constitute an offer to sell or a solicitation to buy any securities.
