Earnings Presentation
FY2025
Vice Chairman
Board Member & Chief Executive Officer
Board Member
General Manager - Finance
General Manager - Services & BD
Today's Presenters
Eng. Rawaf
Bourisli
Ahmad
Al-Ajlan
Vikas
Arora
Jainuddin
Jhabuawala
Ivan
Chikunov
This presentation has been prepared solely for use as an investor presentation for Action Energy Company ("AEC" or "the Company"). By attending the earnings call or by reading this presentation, you agree to be bound by the following limitations.
This presentation contains statements that are, or may be deemed to be, forward looking statements. These statements are based on the Company's current plans, estimates and projections, as well as its expectations of external conditions and events. Forward-looking statements are subject to risks, uncertainties and assumptions about the Company and its investments, including, among other things, the development of its business, financial prospects, growth, strategies, as well as the trends in the industry and broader macroeconomic developments in Kuwait. The Company shall not be held liable for factors that are beyond its control, including but not limited to factors such as, future market conditions, currency fluctuations, regulatory actions, changes in applicable laws or regulations, subsidy, etc.
The information and opinions herein are believed to be reliable and have been obtained from sources believed to be reliable, but no representation or warranty, express or implied, is made with respect to the fairness, correctness, accuracy, reasonableness, or completeness of the information and opinions. There is no obligation to update, modify or amend this communication or to otherwise notify you if any information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
You are strongly advised to seek your own independent advice in relation to any investment, financial, legal, tax, accounting, or regulatory issues discussed herein. Analyses and opinions contained herein may be based on assumptions that if altered can change the analyses or opinions expressed.
Neither this presentation nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. The contents of this presentation are not to be construed as legal or financial.
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Disclaimer
Company OverviewIntroduction to Action Energy Company
At a Glance Powering the Future of Energy
Established in 2015, AEC has grown into a leading provider of onshore drilling services in Kuwait, operating 20 rigs as of 2025, representing approximately 10% of Kuwait's active rig fleet. The Company operates primarily through two key complementary business segments:
Drilling Services, supported by a modern, high-utilization rig fleet, and
Oilfield Services, providing well lifecycle support through a combination of in-house capabilities and strategic technical partnerships.
Gulf Cables &
Electrical Industries Group Co.
47.05%
Gulf Investment
Corporation Co.
6.58%
Action Real Estate
Company
5.00%
JVs and Partnerships
Major Shareholders
Total Installed Capacity
20,600 HP
Operational Onshore Rigs
20
Under Mobilization 7
Backlog
KWD 321 mn
Market Share (as of FY25)
10%
2015
2015
2016
2018
Foundation
Founded with vision to lead Kuwait's oil services and drive technology transfer through strategic partnerships
Corporate Transformation
First KOC Contract
Awarded 5-year drilling contracts for two 1500 HP rigs by KOC, which were both extended to 2023
Further Expansion
Expansion to Oil Services
Under JV with CPVEN, awarded first Coil Tubing contract with KOC which renewed in 2020
Sales of Contracts to NESR
Expansion in Deep Drilling
Secured 5-year contract in 2018 for two 3000 HP rigs with KCA Deuteg - mobilized in 2020 & 2021
Further Services Expansion
2024
Issued USD 55 million in preference shares fully subscribed by GIC
New contract for 10 additional rigs
•
•
2022
Renewed two 1500 HP rigs and added six 750 HP rigs
Raised capital to KWD 20 million
2021
Sold coil tubing, cementing, and mud engineering JV contracts
2019
Cementing and Mud Engineering contracts awarded to JV with CPVEN, totaling USD 156 mn
Operational Diversification
Broader Market Reach
2025
Future
Targeted Drilling and workover, Inspection, Slickline, OTSG, ESP contracts, currently pending signature / under tender
Acquired "Target NDT" for inspection service in April 2025
Source: Company Information
Increase number of rigs
Expand services
Explore new geographies and explore growth through opportunistic M&A
Our Journey of Accomplishments
Over a Decade of Sustained Growth Towards National Leadership
Wireline
Number of Operational Rigs (FY25)* | 20 |
Enhanced rig-move capabilities designed to optimize operational
efficiency, safety and costs
P
Workover, Well Testing & Maintenance - Pressure, SCSSSV, valve
servicing, and surface wells
Enhanced Efficiency
Through In-House Capabilities
AEC's diverse service offering allows it to capitalize on clear synergies across offerings by delivering comprehensive contracts ensuring it
continues to capture value
Source: Company Information
Notes: (1) Oilfield services are newly introduced, with contracts either signed, pending commencement, or currently under tender
* 7 rigs are under mobilization
Maximizing Value through Strong Client Relationship
Comprehensive Platform Delivering Full-Cycle Value
Action Energy's Platform Enables Comprehensive Operations and Contracts
P
P
P
Drilling Services
Oilfield Services(1)
Electrical Submersible Pumps
Revenue Contribution 99%
FY25)
Full-cycle drilling execution with high-utilization rig fleet
Revenue
Contribution FY25)
1%
Well lifecycle support delivered through strategic technical partnerships
AEC rig fleet is in range of high-spec rigs (550-3,000 HP) with 20,600 HP installed
Prequalified for drilling, workover and heavy oil services
Slickline Services
Once Through Steam Generator Services
Mobile Equipment Inspection
Tubular Inspection
Directional Drilling
Longstanding Collaboration with Core Client
Diverse product offering with clear synergies across the business verticals
Investment Highlights
Kuwait's Leading Onshore Drilling And Oilfield Services Champion
Clear Strategy For Disciplined Growth and Shareholder Returns
Seasoned Leadership Team and Institutionalized Governance
Significant Backlog Providing Multi-year Revenue Stability
Young, Fit-for-purpose Fleet Driving Efficiency, Reliability, And Safety
Attractive Financial Profile With Strong Cash Generation
Operating in an Industry With Favorable Fundamentals and Multi-year Visibility
Resilient Business Model Proven Across Cycles
Full Spectrum Upstream Capabilities Supported By Strategic Partnerships
Kuwait's Leading Onshore Drilling And Oilfield Services Champion
2 rigs
6 rigs
Ratqa | DMZ | UN
North Kuwait
3 rigs
West Kuwait
2.1 Years
AEC Fleet Avg. Age
9 rigs
South & East Kuwait
Drilling Rigs
Workover Rigs
Demonstrating a Dominant Presence in Kuwait
20 operational rigs
(FY25)
5x since 2022
Proven Consolidator Through Cycles
KWD 31.9mn
Revenue
KWD 16.4mn
EBITDA
c. 51% Margin
(FY25)
Leading Scale & Profitability
KWD 20.8mn
Revenue
KWD 10.4mn
EBITDA
50% Margin
(FY24)
AEC also maintains deep, long-standing relationships with leading international partners
Partner of Choice for Kuwait's Key Energy Supplier
Visible, Contracted Growth | |
KWD 183.6 mn | KWD 321 mn(1) |
Backlog | Backlog |
88% with K.O.C | 94% with K.O.C |
| 1.4x since 2022 | 2.5x since 2022 |
(FY24) | (FY25) |
100%
2025 average utilization
Vs. MENA Average of 54%(2)
Committed to Operational Excellence and Efficiency
0.01 LTIR Average (2018-
2025)(3)
c. 96% lower than global onshore average
Culture Focused on Safety
Operational Rigs: 20 rigs Under Mobilization: 7 rigs
Source: Company Information, Westwood Global Energy Group (August 2025)
Notes: (1) As of FY25, contracts under bid are included; (2) 2024 capable onshore rig utilization in MENA (Westwood Global Energy Group estimate); (3) LTIR is the lost time incident rate used to measure the number of workplace incidents or injuries that result in lost time
B Robust margins supported by a lean cost structure
C Disciplined capital expenditure and working capital management
D Efficient capital structure with opportunities for further optimization
E Best-in-class returns, with further capability to deliver in the long term
Attractive Financial Profile With Strong Cash Generation
A
Largely derisked, contracted, growing and resilient top line supported by a strong
backlog
Source: Company Information
Notes: (1) NOC - National Oil Company
Rig Activity in the GCC Has Proven Resilient Through Cycles and Has Been on a Multi-Decade Growth Trajectory
# of Rigs(1) | 2012 | 2024 | Growth (%) | AEC Contracted Rig Market Share (2025) 90% 20 10% rigs | |
Kuwait | 94 | 240 | 155% | ||
GCC (Excl. Kuwait) | 362 | 501 | 38% | ||
Rest of World | 8,449 | 8,915 | 6% |
Onshore Rig Count(1) (Rebased)
300
250
200
150
Kuwait
GCC (Excl. Kuwait) Rest of World
100
50
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Highest Reserve Life
Maintains an oil and gas reserve life of 276 years
Low Lifting Cost
Boasts a competitive lifting cost of
$8.50 per barrel
Reduced Emissions
Achieves a minimal CO2 intensity of
8.5kg per barrel
Significant Barriers to Entry
Stringent regulatory and licensing requirements apply for Kuwait operations
Source: Westwood Global Energy Group (August 2025)
Notes: (1) Based on total rig count (contracted and uncontracted)
Operating in an Industry With Favorable Fundamentals and Multi-year Visibility
Backlog (KWD mn) | EBITDA Margin (%) | Operational Rigs (#) |
131 | 70% | 4 |
119 | 59% | 9 |
184 | 49% | 10 |
321 | 51% | 20 |
+ 190 KWD mn | NMF | + 16 rigs |
Track Record of Rapid Growth Throughout Market Cycles
Revenue and Productivity Through the Cycle
99.1%
97.4%
99.6%
99.8%
99.9%
100.0%
99.00
Productivity Rate
99.9%
Brent Crude Price ($)
99.4%
99.7%
82.32
79.91
71.61
70.83
31.9
64.20
68.32
54.89
43.33
20.8
13.9
13.0
12.1
9.6
5.8
6.0
6.3
2022
2023
2024
2025
Δ 2022 -
2025
2017 2018 2019 2020 2021 2022 2023 2024 2025
De-risked Growth with Long-Term Horizon
Customer base dominated by NOCs
Insulated from Energy Price Volatility
Competitive day rates
Low Costs
Lean operations & overhead; economies of scale
Source: Company Information, Westwood Global Energy Group (August 2025)
Resilient Business Model Proven Across Cycles
Action Energy operates across multiple stages of the oil & gas drilling value chain, with JV partners enabling expansion into specialized, high-value services
Oil & Gas Drilling Value Chain
Strategic JV International Partners Enabling Expanded Capabilities
Exploration
Drilling & Well Construction
Exploration Studies & Licensing Exploration Drilling
Technical partner for Operational and Maintenance services
Partner for the provision of oil service workshop
Partner for provision of Wireline, Logging and Perforation Services
TRG
Partner for the provision of ESP services
AEC has leased out two 3000 HP rigs to KCAD
Rig Contracting & Mobilization Well Design, Drilling & Evaluation
Completion & Production Start-
Up
Well Completion Testing & Start-Up
Production Operations
Production Optimization
Partner for the provision of Directional Drilling
Partner for the provision of Slickline services
Well Intervention & Workovers
Abandonment & Decommissioning
Plugging Wells
Site Restoration
Action Energy operates across multiple stages of the oil & gas drilling value chain, with JV partners enabling expansion into specialized, high-value services
Source: Company Information
Full Spectrum Upstream Capabilities Supported By Strategic Partnerships
Young, Fit-for-purpose Fleet Driving Efficiency, Reliability, And Safety
Fleet Breakdown by Horsepower (HP)
Operational Status
>=3,000HP (2 Rigs)
1,500HP (6 Rigs)
<750HP (2 Rigs)
100%
of AEC's rigs are currently contracted and fully operational
750-1,499HP (17 Rigs)
State of the Art Rig Fleet… …and the Youngest Fleet in the Region, Built for Efficiency, Safety, and Mobility
Drilling Rig Ages in MENA & GCC
MENA Average Age GCC Average Age
Kuwait Average Age AEC Average Age
Top 5 Kuwait Players with Land Rigs between 750-1,499HP
17
60 AEC enjoys one of the youngest drilling & workover fleets in both MENA and Kuwait - with the Kuwait average age being 15.9
50 years
40
0-5 Years, 14.0%
6-10
Years, 16.0%
20+ Years,
26%
11 30
10
9
6 20
11-15
years, 19.0%
16-20
Years, 25.0%
AEC
Kuwait
Burgan CNPC Drilling
Great Wall Drilling
10
AEC Avg. 2.1 Years
0
AEC's young and modern rigs combine efficiency and versatility, positioning the company to capture Kuwait's rising demand
Source: Company Information, Westwood Global Energy Group (August 2025)
Significant Backlog and Attractive Contract Terms
5.0 Years
Weighted Average Residual Contract Life
By Segment
28%
Oilfield Services
5.3 Years
Average Contract Duration
+1-year renewal clauses
+ in place, with AEC already re-tendered
KWD Denominated
94% of Backlog Revenue
72%
Strong Customer Relationships
Drilling Services
Longstanding and Collaborative Relationship with KOC
6.9x
Backlog / Net Debt (Dec 2025)
Significant KWD-Denominated Backlog with Long Contract Tenure Anchors Cash Flow Visibility and Strengthens Downside Protection
Source: Company Information
Significant Backlog Providing Multi-year Revenue Stability
Seasoned Leadership Team and Institutionalized Governance
Executive Team
Tenure at AEC: 3 years
Education: Bachelor's of Business -Kuwait University
Recent Experience:
Board Member of Qurain Petrochemical Industries Company from 2005 to 2009
Board Member of Zumorrroda Leasing from 2006 to 2009
Tenure at AEC: 5 years Education: Masters in Mechanical Engineering from Moscow Technical State University
Recent Experience:
Field Services Manager at Schlumberger from 2010 to 2020
Tenure at AEC: 7 years Education: University of Salford Manchester
Recent Experience:
HRM at Gulf Drilling & Maintenance Co. from 2016 to 2019
HR Team Lead at SGS from 2011 to 2016
Mr. Ahmed Al-Ajlan
Tenure at AEC: 9 years Education: Rig Technician Level 3 Recent Experience:
Drilling Superintendent at Grey Wolf Drilling from 2014 to 2015
Operations Manager at Weatherford Drilling from 2007 to 2014
Chief Executive Officer
Mr. Craig Rasmussen
General Manager - Drilling & Workover
Mr. Ivan Chikunov
Tenure at AEC: 8 years
Education: CA, Bachelor's Degree in Commerce
Recent Experience:
Head of Finance at Hadi Hospital from 2015 till 2017
Assurance Manager at E&Y from 2008 to 2014
General Manager - Services & Business Dev
Mr. Jainuddin Jhabuawala
General Manager - Finance
Mrs. Wafaa Al Shatti
General Manager - HR & Admin
Tenure at AEC: 9 years Education: Bachelor's Degree in
Mechanical Engineering - University of San Jose
Recent Experience:
QHSE Manager at Eurasia Drilling from 2013 to 2015
Senior QHSE Advisor at Dalma Gulf Drilling from 2008 to 2013
Mr. Egbert Micame
Health, Safety, and Environment Manager
Sheikh Mubarak Al-Sabah
Chairman
Eng. Rawaf Bourisli
Vice Chairman
Mr. Ahmed Al-Ajlan
Board Member and CEO
Mr. Vikas Arora
Board Member
Mr. Talal Al-Qassar
Board Member
Independent
Board Member
Independent
Board Member
Seasoned Leadership Team and Institutionalized Governance, cont'd.
Member of Arab Stock Market Union
Board Member of Qurain Holding
General Manager of Action Real Estate Company
Vice Chairman of Action Hotels
Founding Chairman, Action Real Estate
Founding Chairman of Action Hotels
Board Member of Egypt Kuwait Holding
The Company's Board of Directors consists of 7 members, including 2 independent seats (currently vacant).
Board committees established in line with CMA requirements, including the Risk & Audit Committee and the Nomination & Remuneration Committee.
Governance framework enhanced through updated policies and procedures to ensure full compliance with CMA regulations.
Organizational structure strengthened with the introduction of a compliance function and the creation of an Investor Relations function, supported by the appointment of a dedicated Investor Relations Officer.
AEC is Compliant with CMA's Listing Requirements Board of Directors
VP of Gulf Investment Corporation
Senior Consultant at Oliver Wyman from 2017 to 2021
CFO of Action Group Holdings from 2016 to 2023
Group Financial Controller at M H Alshaya from 2006 to 2016
Source: Company Information.
Clear Strategy For Disciplined Growth and Shareholder Returns
Building Kuwait's Only Local Player Covering Drilling, Workover, and Oilfield Services
Built on Strong Foundations and Proven Track Record
Local Champion Through Strategic Service Expansion and Strong Shareholder Backing
Anchored Leadership in Kuwait Through Proof of Concept
1.
Entered market with 2 drilling rigs and 2 leased rigs through JV with Sun Drilling, securing contracts with KOC and KCAD
2.
+
Established credibility as Kuwait's only local drilling contractor, with shallow, medium, and deep drilling rigs
Positioning
AEC's Strategic Offering Expansion
P
Drilling Rigs
P P
Workover Rigs
Barriers
Sole Kuwaiti player with proven Drilling, Workover, and OFS capabilities, validated by multiple contracts
Oilfield Services
= Expanded into workover and OFS,
combining timely entry with proven know-
Global players partnered with AEC to enter Kuwait market
P how to capture fast-growing opportunities
Prequalified for Drilling, Workover, and OFS, while new entrants face 5+ years to catch up
P
Protected by new rules banning JVs in local tenders
Secured 1-year contract extensions twice
P
Backed by GIC, enabling
entry into high-value niche OFS segments
Already prequalified across multiple drilling and oilfield services
Strong Shareholder Backing
P
P
Invested USD 1mn+ in policies and procedures to support independent operations and compliance
Source: Company Information, Westwood Global Energy Group (August 2025)
Sustain and Grow Market
Leadership in Kuwait
Demand for onshore drilling underpinned by Kuwait Oil Company's long-term target to increase crude production capacity to 4.0 mmbpd (million barrels per day) by 2035 and expand free gas output.
With one of the youngest fleets in the country
and a 94% success rate in drilling tenders to date, AEC is well-positioned to capture a share of this expansion.
The Company's strong track record, long-
standing relationship with KOC, and fully prequalified rig
fleet support its ability to sustain and grow market share in its core domestic market.
Expand and Diversify Oilfield
Services
The Company has already secured pre-qualifications and awards in areas such as electric submersible pumps (ESP), slickline, inspection, and once-through steam generator (OTSG) services, and continues to pursue additional service line pre-qualifications.
Strategic partnerships with global technology
providers enable knowledge transfer, technical capability enhancement, and transition from JV-based participation to independent execution.
This diversification broadens AEC's role as a
partner to KOC, deepens integration with the upstream value chain, and enhances resilience through recurring service revenues.
Pursue Regional Expansion and
Selective M&A
AEC is evaluating opportunities to replicate its operating model across the GCC, where significant incremental demand for drilling and workover rigs is expected by 2030. Growth avenues include bidding independently using existing pre-qualifications, entering into JVs, & selectively acquiring local operators or service providers to accelerate entry into attractive markets.
Within Kuwait, bolt-on acquisitions in OFS segments such as well services, slickline, and production support are also being assessed to broaden technical expertise and strengthen AEC's long-term value proposition.
All expansion is guided by a disciplined capital
allocation framework, maintaining conservative leverage and a focus on sustainable shareholder returns.
Strategic Pillars of Growth
Embedded HSE Culture Aligned with International Standards and Industry Best Practice
AEC Has a High HSE Standard Allowing it to Maximize Efficiency and Reduce Risk
HSEQ a Key Pillar to AEC's Successful Business Model Safety Metrics
Policy & Strategic Objective
Leadership & Commitment
Planning
Organization & Responsibilities
2022A | 2023A | 2024A | 2025A | |
LTIR(1) | 0.00 | 0.00 | 0.09 | 0.01 |
TRIR(2) | 0.00 | 0.00 | 0.18 | 0.09 |
RTAF(3) | 0.00 | 0.00 | 0.00 | 0.11 |
Employee Fatalities | 0.00 | 0.00 | 0.00 | 0.00 |
Manpower & Competence Assurance
Standards, Procedures & Document Controls
Hazards & Effects Management
Audit & Review
Implementation & Monitoring
HSE Standards on par with global standards
Strong HSE track record gives edge when tendering
Key Memberships & Accreditations
9-Year Free LTI Safety Award Awarded to Rig SD-16 with KOC in 2025
7-Year Free LTI Safety Award
Awarded to Rigs SD-15 & SD-16 with KOC in 2023
Source: Company Information
Notes: (1) Lost-Time Incident Rate, (2) Total Recordable Incident Rate, (3) Road Traffic Accident Rate
Financial Review
Revenue
KWD 31.9 mn
+53%
YoY
EBITDA
KWD 16.4 mn
+57%
YoY
Net Profit
KWD 5.7 mn
+202%
YoY
Backlog
KWD 321 mn
+75%
YoY
Net Debt to Equity
0.55x
Dec 2024: 1.45x
Op. Cash Flow
KWD 10.9 mn
+23%
YoY
Key Financial Highlights
Revenue & Backlog
Highlights
Revenue increased 53% YoY to KWD 31.9 mn, due to:
doubling of the fleet size to 20 rigs
deployment of 10 new workover rigs
expansion into specialized high-margin Oil Field Services (OFS)
Backlog surged 75% YoY, strengthening multi-year revenue visibility and reinforcing the Company's ability to sustain growth through long-term, contractually secured cash flows.
Revenue
(KWD millions)
20.8
9.2
5.4
31.9
8.2 9.3
5.3
Q1 25 Q2 25 Q3 25
Backlog Evolution
(KWD millions)
Q4 24 Q4 25 FY 24 FY 25
184
178
171
330 321
Backlog By Segment
(%)
28%
72%
Drilling
Oilfield Services
Dec 2024 Mar 2025 Jun 2025 Sept 2025 Dec 2025
Financial Performance
Highlights
Higher G&A reflects intentional capability-building, with strategic investments to support a rapidly scaling operating base, rather than cost drift.
Despite higher overheads, EBITDA climbed 57% YoY, demonstrating that growth in activity and efficiency outpaced cost expansion.
60% acquisition of Target NDT and expansion into high-margin OFS expected to improve overall margin mix.
Net profit acceleration confirms solid underlying operational and financial momentum.
Capex declined to KWD 0.9mn as the rig-build program concluded, with a shift from expansionary spend to generating returns from the fully deployed fleet.
EBITDA
(KWD millions)
16.4
2.9
10.4
4.6
2.8
4.1 4.8
Q1 25 Q2 25 Q3 25 Q4 24 Q4 25 FY 24 FY 25
Net Income
(KWD millions)
5.7
Capex
(KWD millions)
14.0
10.8
2.7
0.0
0.9
1.7
1.9
0.6
0.8
1.4 1.8
Q1 25 Q2 25 Q3 25
Q4 24 Q4 25 FY 24 FY 25
Dec 2024 Mar 2025 Jun 2025 Sept 2025 Dec 2025
Key Operational Highlights
Highlights
Industry-leading safety culture as evidenced by exceptionally low LTIR
and NPT, demonstrating that AEC's operational discipline and ISO-certified HSE systems deliver a structurally safer working
environment that directly supports higher utilization, fewer disruptions, and stronger customer confidence.
Rig moves increased sharply through 2025, before declining towards the end of the year, highlighting AEC's ability to rapidly redeploy rigs, a key factor helping maintain high utilization rates and unlocking faster revenue conversion.
Lost Time Incident Rate (LTIR)
0.09 0.09 0.09 0.09
0.00
Non-
Q4 24 Q1 25 Q2 25 Q3 25 Q4 25
Rig Moves
Productive Time (NPT) -in hours
182.8
103 97
94.5
1.0
71.5
10.0
70
35
30
Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Dec 2024 Mar 2025 Jun 2025 Sept 2025 Dec 2025
Balance Sheet Position
Highlights
Cash balances surged to KWD 28 million, due to the capital increase and IPO, thus positioning AEC to fund growth, de-risk liquidity, and strengthen the balance sheet for the next phase of expansion.
Net debt/equity nearly halved to 0.55x, reflecting solid cash and a more efficient balance sheet, despite a relatively stable long-term borrowing level.
Balance Sheet positioned for growth, with high cash reserves and lower net leverage, thus enhancing financial flexibility for fleet expansion and OFS diversification, supporting AEC's long-term growth strategy.
Cash & Equivalents
(KWD millions) 28
11
11
8
8
Dec 24 Mar 25 Jun 25 Sept 25 Dec 25
(KWD millions)
70
68
66
61
Long Term Borrowings
Net
72 Debt/Equity
(xx)
0.98
0.55
1.13 1.13 1.08
Dec 24 Mar 25 Jun 25 Sept 25 Dec 25
Dec 24 Mar25 Jun 25 Sept 25 Dec 25
Important UpdateCurrent Geopolitical Events
What it Means for Action Energy
Concentration Risk Due to Heavy Reliance on KOC
The vast majority of contracted backlog is derived from Kuwait Oil Company (KOC). Any geopolitical escalation that affects Kuwait's upstream spending, procurement cycles, or tender timelines could directly impact revenue visibility, contract renewal rates, and backlog conversion.
Potential Supply Chain Disruptions
The company depends on a diversified but globally distributed supplier base (rig components, ESP parts, inspection equipment). Regional instability could disrupt import logistics, extend lead times, or increase costs of spare parts, potentially impacting operations despite strong inventory management.
Increased Operating Costs & HSE/Compliance Pressure
Geopolitical tension could lead to stricter regulatory oversight, heightened safety requirements, and cost inflation. Elevated regional risk could increase insurance premiums, security costs, and compliance requirements, affecting margins.
Labor Mobility & Workforce Stability Challenges
Action Energy relies on a large, multi-national, highly technical workforce. Heightened regional instability may disrupt expatriate labor flows, increase hiring/retention costs, all of which could affect staffing for rig operations and service delivery.
How Action Energy is Navigating the Current Situation
Long-Term KOC Contracts Provide Stability
Multi-year, fixed-rate contracts (averaging 5 years) with Kuwait Oil Company, including extension options and early-termination penalties, secure revenue visibility despite regional volatility.
Kuwait-Centric Operations Reduce Cross-Border Exposure
All rigs, personnel, supply bases, and customer relationships are located entirely within Kuwait, minimizing exposure to cross-border disruptions, airspace closures, and regional logistics risks.
Modern, High-Reliability Fleet Ensures Operational Continuity
A young fleet (average 2.07 years) with >99% utilization and <1% NPT, supported by predictive maintenance systems (Oracle), reduces downtime risk during regional instability or supply chain delays.
Diversified Supply Chain & Strong In-House Capabilities
Multiple qualified suppliers, strong OEM partnerships, and in-house maintenance, rig-move, and inspection capabilities limit dependency on external parties and mitigate geopolitical supply chain shocks.
Robust HSE, ESG & Governance Frameworks Enhance Resilience
ISO-certified HSE systems, low LTIR (0.09), extensive workforce training, and structured governance (Audit & Risk Committee, compliance functions) ensure safe, uninterrupted operations even during periods of regional tension.
We continue to closely monitor the evolving regional situation. At this stage, none of our rigs or operational assets have been affected, and our operations remain safe and uninterrupted
Concluding RemarksTHANK YOU
Eman El Batl
ir@actionenergykw.com
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Action Energy Co. KSCC published this content on March 25, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on March 25, 2026 at 05:07 UTC.
