MUSCAT: Omani oilfield services company Abraj Energy Services has reported a record contract backlog of RO 953 million as it continues to expand its drilling fleet and strengthen its regional footprint.
The Muscat-listed company said its backlog, as of June 30, 2026, represents approximately 140 fleet rig years of contracted work, with an average remaining contract tenure of 5.7 years per rig. Its book-to-bill ratio stood at 6.4 times trailing 12-month revenue, underscoring the depth of its order book.
The robust backlog comes alongside improved second-quarter financial performance. Revenue for the quarter reached RO 39.3 million, up 9 per cent from the previous quarter, driven by higher rig activity, increased client recharges and the timing of maintenance work. Quarterly net profit rose 10 per cent quarter-on-quarter to RO 4.9 million.
For the first half of 2026, revenue increased 3 per cent year-on-year to RO 75.3 million, while profit after tax remained steady at RO 9.3 million. The company also recorded its highest rig utilisation rate in the past 12 months, with 24.6 active rigs out of a fleet of 27 at the end of June.
Looking ahead, Abraj expects third-quarter revenue to rise by 5–10 per cent compared with the second quarter as additional rigs commence operations. Reflecting this momentum, the company has upgraded its full-year 2026 revenue guidance to RO 150–160 million, from its previous forecast of RO 145–155 million, while maintaining EBITDA margin guidance in the low-to-mid 30 per cent range.
The company is also pressing ahead with a major fleet expansion programme. Capital expenditure during the first half reached RO 29.3 million, largely tied to the construction of eight new drilling rigs — seven for Petroleum Development Oman (PDO) and one for Kuwait Gulf Oil Company (KGO). Abraj expects to invest a further RO 30–40 million during the second half of the year, with the overall programme estimated to cost RO 90–95 million.
Commenting on the results, Chief Executive Officer Eng Saif al Hamhami said the successful deployment of additional rigs marked important progress in converting capital investments into productive assets that will support future revenue and earnings growth. He added that the company also secured an upgraded hydraulic fracturing contract with PDO, strengthening its position in higher-value well services and enhancing its long-term growth prospects.
Abraj Energy Services SAOG is Oman's largest onshore drilling contractor and operates a fleet of 27 drilling rigs and eight workover rigs, serving major operators including PDO, Shell, Chevron and Occidental.
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