ADNOC Drilling (ADNOCDRILL.AD): Q3 First Take: Another solid quarter, USD 175m special dividend, 2027 guidance for flat net income, OFS to broaden offer

AD reported another solid quarter and announced a discretionary/special dividend of USD 175m, raising the total 2026 payout to USD 1,225m and putting the stock on a yield of 4.9%. AD also announced a strategic push to add more value per well drilled through a vertical increase in the breadth of services offered in the OFS business (e.g. artificial lift, well heads, etc.), which will likely require further acquisitions. Guidance for 2026 was maintained in line with consensus, but preliminary 2027 guidance looks a little light of current expectations with low-to-mid-single-digit revenue growth and a broadly stable EBITDA margin, with net income expected to remain flat versus FY26 as a result of higher depreciation and financing costs. For Q3, AD reported revenue, EBITDA and net income marginally above our expectations. By segment, onshore revenue was in line while EBITDA was c+6% vs our forecasts; offshore was c+2% vs JPMe at revenue and EBITDA;