en.Wedoany.com Reported - Kuwaiti integrated upstream services company Action Energy Company K.S.C.P. (AEC) announced its financial results for the first half of the year ended June 30, 2026, on August 9, 2026. Revenue increased by 34.4% year-on-year during the period, while net profit grew by 96.6% year-on-year, with contract backlog reaching $1.1 billion with Kuwait Oil Company (KOC).
AEC is listed on the main market of the Boursa Kuwait, with Bloomberg code ALFTAQA KK and Reuters code ALFTAQA.KW. The company is Kuwait's local integrated upstream services partner, owning and operating one of the youngest rig fleets in the region.
AEC Chairman Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah stated that the H1 2026 results reflect the resilience of the company's business model, with net profit nearly doubling year-on-year and record contract backlog. The Board of Directors has recommended an interim cash dividend of 3 fils per share, and the company remains committed to creating long-term shareholder value and supporting Kuwait's long-term energy development goals.
Board Member and Chief Executive Officer Ahmad Mohammad Al-Ajlan stated that the first-half results reflect the successful execution of the growth and diversification strategy, with record backlog, continued investment in fleet expansion, and the growing contribution of the oilfield services business laying the foundation for AEC's next phase of growth and long-term value creation.
In terms of operational data, drilling and workover services account for approximately 61% of the backlog. AEC operates 20 rigs with 100% utilization in the first half, completing 202 rig moves compared to 100 in the same period last year. Drilling revenue increased by 39% year-on-year to $45.21 million, while rig rental and mobilization revenue increased by 13.8% year-on-year to $10.44 million.
Oilfield services account for approximately 39% of the backlog. AEC has advanced the mobilization of ESP, Slickline, and OTSG service lines, with an investment of $17.8 million. Other operating revenue increased by 60.8% year-on-year to $2.75 million. Additionally, AEC established a strategic joint venture with Kellton to drive AI-led digital transformation in the Gulf Cooperation Council (GCC) energy sector.
Regarding dividends, the Board of Directors has recommended an interim cash dividend of approximately 10 cents per share based on the six-month period ended June 30, 2026, with a total distribution of approximately $5.5 million. This marks AEC's first interim cash dividend.
Looking into the second half of the year, AEC stated that revenue visibility remains strong, with the full fleet maintaining full utilization. Priorities include advancing the mobilization of ESP, Slickline, and OTSG service lines as well as seven new rigs, executing the record backlog, while maintaining financial discipline. In the medium term, AEC plans to maintain the business mix between drilling and oilfield services at approximately 60% and 40%, respectively, and keep the net debt-to-equity ratio below 1.25 times.
