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Action Energy Company Reports Excellent Q1 2026 Results

On June 9, 2026, Action Energy Company K.S.C.P, a leading player in Kuwait's upstream services, revealed its financial performance for the first quarter ending March 31, 2026. This announcement follows a significant expansion in the company's operational capabilities and reflects a robust growth trajectory that marks a new era for the firm.

Financial Highlights

One of the most striking aspects of the report is the impressive year-on-year revenue increase of 69.2%, reaching a total of KWD 9.1 million. This growth has been primarily driven by the remarkable expansion of the company's rig fleet, which increased from 13 to 20 operational rigs within one year, thanks to the inclusion of 10 new rigs during 2025. The earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a substantial rise of 53.6%, amounting to KWD 4.6 million.

Most notably, the net profit surged by an astonishing 150%, reaching KWD 2.2 million. Earnings per share (EPS) improved, climbing from 2.39 fils in Q1 2025 to 3.97 fils in the latest quarter, signifying a solid return for shareholders.

Efficiency and Utilization Rates

Another highlight is the company’s 100% rig utilization rate during this quarter, bolstered by long-term contracts with the Kuwait Oil Company (KOC). These contracts are crucial as they provide stability and consistent revenue streams while supporting ongoing drilling activities and investments in Kuwait's crude oil sector. Furthermore, cash flow from operations saw a significant increase of 179.5% year-on-year, demonstrating the efficiency of the company's operations.

The balance sheet also reflects strong financial health, with a significant improvement in the net-debt-to-equity ratio, which dropped from 1.67 to 0.61 following a successful IPO and capital restructuring that was completed in December 2025. This shift indicates a reduced reliance on debt, enhancing the company’s financial standing.

Rig Operations

In Q1 2026, Action Energy Company operated a diverse range of 20 rigs across Kuwait, encompassing drilling and workover units with power ratings between 550HP to 3,000HP. This breadth of services supports crucial activities in crude oil exploration, production, and maintenance. In terms of backlog composition, approximately 62% stems from drilling services, while the remaining 38% consists of oilfield services. This structured segmentation supports long-term operational visibility for the company's engagements in Kuwait's upstream oil and gas sector.

Moreover, the company continues to strengthen its service offerings by mobilizing key oilfield services such as electrical submersible pumps (ESP), slickline operations, and intensified oilfield surface gathering systems (OTSG). This robust service expansion underpins Action Energy's strategic vision to newly enhance integrated upstream services for Kuwait's expanding oil production targets.

New Contracts and Future Outlook

In January 2026, the company announced winning contracts from KOC worth KWD 76.9 million for seven additional rigs, which is set to boost the fleet backlog up to 27 rigs once implementation is complete.

Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, Chairman of Action Energy, emphasized that the solid results for Q1 2026 accentuate the resilience and strength of the company's business model. He noted the ongoing growth momentum supported by fleet expansion, high utilization rates, and a forward-looking multi-year contracted backlog with KOC.

As Action Energy enters the latter half of 2026, the company shows promising revenue visibility, empowered by a substantial long-term contracted backlog alongside plans for new rig deployments and oilfield service contracts in progress. Founded in 2015, Action Energy stands as a reliable partner to global leaders in the energy sector, accentuating its pivotal role in bolstering Kuwait’s oil industry while building strong relationships with firms such as KCA Deutag, CPVEN, COSL, Jereh, and Kerui.

This positive trajectory not only reflects the company's growth but also highlights its significant contributions towards enhancing Kuwait’s position in the global oil market.