Operational Energy Earns 6.5 Million Dinars in 9 Months, Up 62.9%

Operational 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 third quarter and the nine-month period ended September 30, 2026. The company reported a net profit of 2.1 million Kuwaiti dinars (KWD), representing strong year-on-year growth of 20.3%, reflecting the resilience of its core operational activities.

Over the nine-month period, the company maintained a clear growth trajectory, with net profit surging by 62.9% year-on-year to reach 6.5 million KWD.

Conversely, earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter amounted to approximately 4.4 million KWD, a decline of 9.1% year-on-year. This decrease was primarily due to an adjustment in the rental prices of certain drilling rigs under a new contract with Kuwait Oil Company (KOC).

Despite the temporary impact of this adjustment on short-term profit margins, it ensures the operation of contracted rigs for the next five to six years, securing 100% utilization of the company’s fleet.

Additionally, the company’s preparations for operational expansion, including equipping seven new drilling rigs for commissioning and expanding oil field services, contributed to a calculated increase in general and administrative expenses, which impacted EBITDA. These earnings were also affected by a decrease in rig move operations and the absence of an exceptional revenue item recorded in the third quarter of 2025.

Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, Chairman of the Board of Operational Energy Company, stated: “The results of the first nine months of 2026 reflect the strength of Operational Energy Company’s financial performance and the resilience of its business model, with net profit reaching a record high of 6.5 million KWD, and cash flow from operating activities increasing by 73.8% year-on-year.”

Sheikh Mubarak Al-Sabah added that these results confirm the solid foundations upon which Operational Energy Company is building to implement its long-term strategy, continue investing in developing its capabilities, and enhance its contribution to the Kuwaiti energy sector.

For his part, Ahmed Mohammed Al-Ajlan, Board Member and Chief Executive Officer of the company, said: “Operational Energy Company maintained strong profitability during the first nine months of 2026, with the third quarter’s net profit rising to 2.1 million KWD, representing strong year-on-year growth of 20.3%. At the same time, the company continued to invest in strengthening its operational capabilities in preparation for the next growth phase, making progress in equipping seven new drilling rigs and expanding oil field service lines linked to a contracted portfolio valued at 340.7 million KWD. Operational Energy Company will continue to focus on operational excellence and financial discipline to achieve sustainable growth and long-term returns for our shareholders.”

Drilling and well servicing services account for approximately 60% of the company’s total contracted portfolio, with Operational Energy Company operating 20 rigs throughout the period.

This decline reflects the repricing of rental for certain rigs under a new contract with Kuwait Oil Company, which extends the contract duration for these assets for the next five to six years, alongside reduced rig move activity and the absence of an exceptional supplementary revenue item recorded in the comparable period.

Work continues on equipping seven new drilling rigs (four with 1,500 horsepower capacity, one with 1,000 horsepower capacity, and two with 750 horsepower capacity), with planned commissioning in the first quarter of 2027.

The contribution of oilfield services to the company’s total order book rose from 28% in the first quarter to 40% in the third quarter of 2026, an increase of 12 percentage points, reflecting the company’s continued implementation of its strategy to expand into high value-added service lines, thereby diversifying its revenue streams and enhancing the integration of its services across the value chain of the exploration and production sector.

The operational strategic priorities of Energy Operations for the fourth quarter of 2026 and the first quarter of 2027 include continuing to execute the KD 340.7 million order book, completing the outfitting of seven new drilling rigs, and taking delivery of new equipment for oilfield services, while maintaining safe and reliable operations across its fleet of twenty drilling rigs. The company will manage liquidity, debt, and remaining capital expenditure, keeping the net debt-to-equity ratio at 1.25 times or less, converting the order book into profitable revenues, and pursuing profitable opportunities in the digital sector.

Energy Operations continues to closely monitor regional developments, while maintaining its focus on delivering high-quality services and achieving sustainable long-term value for its shareholders.