初步观点：阿联酋以外地区的增长详情

First View: Further Colour on Growth Outsidethe UAE Conclusion Following today's announcement, mgt call provided more colour on ADNOCDrilling's acquisition of a 70% stake in SLB's land rig business in Oman &Kuwait. Currently, the land drilling market in Oman & Kuwait combined is 3xthat of Abu Dhabi, UAE, with a combined rig count of c.300. ADNOC Drillingaims to grow its market share from low single-digit post transaction, to highsingle-digit over time, along with providing an integrated services offering.The co expects the transaction to generate c.$20m-30m in additional FCFp.a in the"first couple of years",stepping up once initial capex spend declines.This cash generation, coupled with the rigs in Oman & Kuwait having beenpurchased at"attractive"prices,underpin the higher IRR of the transaction,vs the domestic drilling IRR of 10-13%. We believe the partnership with SLB'sexisting platform, & contracts in place with state-owned entities (PDO &KOC), de-risks this new country entry, & provides visibility on long-term FCFgeneration. Detail Growth to mid single-digit market share.The current market size forconventional land drilling is c.3x that of Abu Dhabi, UAE, with a combinedrig count of c.300 in Oman & Kuwait. Currently, ADNOC Drilling's 8 rigs (6Oman, 2 in Kuwait) imply a low single-digit market share, with the companylooking to ramp up to a high single-digit market share. Oilfield services isalso directionally in-line with the drilling market in Oman & Kuwait, whereADNOC Drilling will look to provide an integrated service offering over time,helped by the partnership with SLB. Attractive economics, with EPS accretion.Management stated that thisdeal will be earnings accretive to ADNOC Drilling upon completion (1Q26e).Current contracted backlog of c.$400m, implies c.$160m in EBITDA (c.40%margin), with maintenance &"upgrade"capex of $15m. This generates$20m-30m FCF p.a, increasing after a couple of years, as capex is expectedto halve. Net income p.a is c.$25m, reflecting a c.20% margin, vs 34% in1Q25 domestic onshore drilling. Six of the eight rigs have contracts to 2028,providing a stable 3-year revenue pipeline, & were acquired at <4x 2025eEV/EBITDA, supporting a premium IRR vs the domestic IRR. Ruben Dewa, CFA * | Equity Analyst+44 (0)20 7029 8262 | rdewa@jefferies.com Mark Wilson, CEng * | Equity Analyst44 (0) 20 7029 8691 | mark.wilson@jefferies.com Lloyd Byrne ^ | Equity Analyst(212) 323-7528 | lloyd.byrne@jefferies.com Company Description ADNOC Drilling Established in 1972 as ADNOC's sole drilling provider, ADNOC Drilling is today the largest national drilling company in the Middle East by rig fleetsize with planstoexpand furtherwithinthis decade. ADNOC Drilling listed on the Abu Dhabi Securities Exchange (ADX) on 3 Oct 2021 Company Valuation/Risks ADNOC Drilling We base our valuation on EV/EBITDA. Risks: slowing of ADNOC Group growth plans; slowdown of unconventional oil and gas growth in UAE;competition in OFS; concentration risks; geopolitical risks. Analyst Certification: I, Ruben Dewa, CFA, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) andsubject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations orviews expressed in this research report. I, Mark Wilson, CEng, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) andsubject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations orviews expressed in this research report. I, Lloyd Byrne, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or viewsexpressed in this research report. Registration of non-US analysts:Ruben Dewa, CFA is employed by Jefferies International Limited, a non-US affiliate of Jefferies LLC and is not registered/qualified as a research analyst with FINRA. This analyst(s) may not be an associated person of Jefferies LLC, a FINRA member firm, and therefore maynot be subject to the FINRA Rule 2241 and restrictions on communications with a subject company, public appearances and trading securities held bya research analyst. Registration of non-US analysts:Mark Wilson, CEng is employed by Jefferies International Limited, a non-US affiliate of Jefferies LLC and is not registered/qualified as a research analyst with FINRA. This analyst(s) may not be an associated person of Jefferies LLC, a FINRA member firm, and therefore maynot be subject to the FINRA Rule 2241 and restrictions on communications with a subject company, public appearances