Ministry of Electricity and Water Reports 4.4 Million KD Profit in Six Months

Al Amal Energy Company, the local partner in integrated exploration and production services in Kuwait and owner and operator of the region’s most modern drilling fleet, announced its financial results for the first half ended June 30, 2026.

Specifically, net profit nearly doubled, rising by 96.6% year-on-year to KD 4.4 million, reflecting the full-period contribution of the expanded drilling fleet and stable core operating margins.

● The Board of Directors recommended interim cash dividends of 3 fils per share for the first half of 2026, totaling approximately KD 1.7 million, marking the company’s first interim cash distribution and underscoring its commitment to delivering sustainable returns to shareholders.

● The contracted work backlog reached a record high of approximately KD 349 million, allocated roughly 61% to drilling services and 9% to oilfield services, providing clear revenue visibility over several years.

● Revenues grew by 4.4% year-on-year to KD 18.1 million, primarily driven by the full six-month contribution of ten new rigs commissioned in 2025. The company operated 20 rigs throughout the period, compared to a partial contribution in the same period last year.

● Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 28.3% year-on-year to KD 9 million, with a margin of 49.8%, in line with the financial guidance provided by the company at the time of its listing.

● Operating cash flow increased by 48.1% year-on-year to KD 5.4 million, consistent with the growth in profitability.

● The company invested KD 20.5 million during the period in fleet expansion and new oilfield service platforms, bringing the total value of property, plant, and equipment to KD 142.7 million.

● The net debt-to-equity ratio improved from 1.65 times to 0.84 times year-on-year, with total equity exceeding KD 86 million, reflecting a stronger and more flexible capital structure.

● The company executed 202 rig moves during the period, compared to 100 in the first half of 2025, while maintaining a 100% fleet utilization rate and recording no health, safety, or environmental incidents.

Commenting on the company’s results, Sheikh Mubarak Abdullah Al-Mubarak, Chairman of the Board of Directors of Al Amal Energy Company, said: “The first half of 2026 reflects the strong performance of Al Amal Energy Company, with net profit nearly doubling year-on-year and the contracted work backlog reaching a record high of approximately KD 349 million. Committed to delivering sustainable returns to shareholders, the Board of Directors has recommended to the General Assembly the approval of the company’s first interim cash dividend of 3 fils per share. Al Amal Energy Company remains committed to operational excellence, creating added value for shareholders, and strengthening its position as a trusted national partner supporting the State of Kuwait’s ambitions in the energy sector.”

For his part, Ahmed Mohammed Al-Ajlan, Executive Director and CEO of the company, stated: “The results for the first half of 2026 confirm our operational platform’s capacity for expansion and the success of our strategy to diversify service lines. Revenues grew by 4.4% year-on-year, while net profit increased by 96.6%. The company invested KD 20.5 million in fleet expansion and new service lines. Meanwhile, the contracted work backlog reached a record level of approximately KD 349 million, with oilfield services contributing 39% of total business, reflecting progress in our diversification strategy toward higher-value services. With the necessary financing secured for executing the work backlog, and the commissioning of seven developing rigs and new service lines, the company is well-positioned to continue its growth, focusing on delivering long-term value to national oil companies, our partners, and shareholders.”

Drilling and well servicing services account for approximately 61% of the company’s total backlog, with an average remaining contract duration of five years. During the first half of 2026, the company operated 20 rigs throughout the period, maintaining a fleet utilization rate of 100%, supported by disciplined preventive maintenance programs and operational standards established since the company’s inception.

A total of 202 rig moves were executed during the first half, compared to 100 in the same period of 2025, reflecting full activity across the expanded well servicing fleet and Kuwait Oil Company’s drilling schedules. Drilling services revenues rose by 9.0% year-on-year to reach KD 13.99 million, while rig leasing and moving revenues grew by 13.8% to KD 3.23 million.

Oilfield services represent approximately 39% of the company’s backlog, with average remaining contract durations ranging between six and seven years. During the first half of 2026, the company continued to operate electric submersible pump (ESP), slickline, and once-through steam generator (OTSG) service lines according to schedule, investing KD 5.5 million in these service lines during the period. Other operating revenues, including support services and inspection services, increased by 60.8% year-on-year to KD 0.85 million. The continuous expansion in this sector enhances the diversification of the company’s revenue sources and deepens its integration across the value chain in exploration and production activities.

The company’s total contracted work backlog reached a record level of approximately KD 349 million as of June 30, 2026, distributed at approximately 61% for drilling services and 39% for oilfield services, reflecting the ongoing expansion of the oilfield services platform alongside core drilling activities.

During the period, the company also signed a strategic joint venture agreement with Kellton, a global company specializing in digital transformation and AI-enabled enterprise technologies, aimed at accelerating AI-driven digital transformation in the energy sector across the Gulf Cooperation Council (GCC) countries.

Regional geopolitical developments during the period led to some increases in logistics and supply chain costs; however, operational activities, contract execution, and customer operations continued without any significant interruption, and no indicators of value depreciation were observed.

The company’s board of directors recommended the distribution of interim cash dividends amounting to 3 fils per share for the six-month period ended June 30, 2026, totaling approximately KD 1.7 million. This marks the company’s first interim cash dividend distribution, aligning with its stated policy of implementing semi-annual cash dividends.