Kuwait’s Leading Onshore Drilling and Oilfield Services Championwebhosting@burhantec.com2026-05-06T17:13:07+00:00
- AEC is one of Kuwait’s leading onshore drilling, workover, and oilfield services companies.
- Since commencing operations with two rigs in 2016, the Company has expanded its fleet tenfold and progressively added oilfield services to its offerings, making AEC the only local company with operations and capabilities across drilling, workover and oilfield services, establishing itself as a local champion.
- This development reflects AEC’s long-term strategy to evolve from a drilling contractor into a full-cycle well solutions provider. The platform combines local operating experience with international technology partnerships, including JVs with established global oilfield service providers, enabling efficient and competitive execution. The majority of AEC’s fleet has been delivered or refurbished since 2023, providing a modern asset base with one of the youngest fleets in Kuwait (average rig age of 2.07 years) and a 30-year operating horizon.
Attractive Financial Profile with Strong Cash Generationwebhosting@burhantec.com2026-04-28T09:28:08+00:00
- AEC has delivered consistent financial growth, supported by high-margin operations and disciplined cost management. Between 2022 and 2025, revenues grew from approximately KWD 13 million to KWD 31.9 million.
- The Company has maintained EBITDA margins above 45% since 2022, reaching 51% in 2025, well above the regional peer median of approximately 42%. This margin strength reflects the efficiency of AEC’s young fleet, lean overhead structure, and efficient operations with minimal downtime (<1%).
- The Company maintains a conservative capital structure, with a Total Backlog-to-net debt ratio of 6.8x and a debt-to-equity ratio below 1.0 as of December 2025. This combination of consistent growth, high margins, strong free cash flow generation, and conservative leverage provides a robust foundation for sustainable shareholder value creation.
Operating in an Industry with Favorable Fundamentals and Multi-Year Visibilitywebhosting@burhantec.com2026-04-28T09:29:13+00:00
- Kuwait’s upstream sector is supported by exceptionally strong fundamentals. The country has an oil and gas reserve life of approximately 276 years, among the longest globally, a low lifting cost of c.US$8.5/bbl, placing it at the bottom of the global cost curve, and a CO₂ intensity of only 8.5kg/bbl, underscoring the long-term competitiveness of its production base.
- On a global level, conventional oil and gas are expected to remain central to the energy mix, accounting for around 55% of global primary energy supply by 2030. Meeting this demand will require c.21 mmboepd of incremental production by 2030, with the GCC set to provide nearly 23% of the world’s oil supply.
- Within this context, Kuwait has seen onshore rig activity expand consistently, with the rig count nearly tripling from 94 in 2012 to 240 as of 2024, despite periods of oil price volatility. Kuwait represents a structurally attractive drilling market where onshore wells are accessible and non-harsh compared to offshore or ultra-deepwater segments, which allows for lower cost and faster mobilisation.
- Kuwait is estimated to witness 120 drilling contracts and 81 workover contracts between 2025E-2030E, underpinned by c.US$9–10 billion of annual upstream investment, reinforcing sustained demand for AEC’s young, fit-for-purpose fleet.
Resilient Business Model Proven Across Cycleswebhosting@burhantec.com2026-04-28T09:30:03+00:00
- AEC has consistently expanded through multiple market cycles, growing its fleet tenfold from 2 rigs in 2016 to 20 rigs as of December 2025 (and 7 rigs under manufacture). This expansion was achieved despite the 2016 oil price downturn and the 2020–21 COVID disruption, underscoring the Company’s ability to invest counter-cyclically and capture share.
- Since its inception, AEC has maintained a 94% success rate on all tenders it has participated in, and achieved full utilisation of its fleet, compared to Kuwait’s industry average of approximately 80% in 2025 and a GCC average of around 64% in 2024, highlighting the resilience of its operating model even in a competitive market. Operational reliability is further evidenced by non-productive time consistently below 1%.
- AEC’s resilience is supported by lean overheads, fixed-rate long-term contracts that reduce exposure to industry cyclicality, and high barriers to entry, including multi-year prequalification, stringent HSE requirements, and capital intensity, which collectively position AEC to sustain leadership and operational continuity across cycles.
Full-Spectrum Upstream Capabilities Supported by Strategic Partnershipswebhosting@burhantec.com2026-04-28T09:30:45+00:00
- AEC has established a strong track record of forming strategic joint ventures and partnerships with global technology leaders such as KCA Deutag, CPVEN, COSL, Expert Optima, NaftoServ, TRG, Jereh, and Kerui.
- These partnerships facilitate technology transfer, expand access to specialised services, and accelerate AEC’s oilfield services growth.
- As of December 2025, oilfield services accounted for approximately 28% of AEC’s contracted backlog, reflecting the growing scale of this business line. In addition, non-tender-based activities, including inspection and workshop services, provide further revenue diversification and cash-flow resilience.
Young, Fit-for-Purpose Fleet Driving Efficiency, Reliability, and Safetywebhosting@burhantec.com2026-04-28T09:32:08+00:00
- AEC operates one of the youngest and most modern rig fleets in Kuwait and the wider GCC, with an average age of 2.07 years compared to the Kuwait market average of approximately 15.9 years. As of 2025, 100% of the fleet is contracted and fully operational.
- The fleet is designed for mobility and efficiency, supported by advanced rig-move systems. With a 30-year operating horizon, AEC’s rigs provide a durable and cost-effective base to meet Kuwait’s growing drilling demand.
Significant Backlog Providing Multi-Year Revenue Stabilitywebhosting@burhantec.com2026-05-06T16:00:58+00:00
- AEC’s contracted position provides strong visibility on future performance. The Total Backlog expanded from KWD 63.3 million in 2020 to KWD 131 million in 2022 and reached KWD 321.5 million as of 31 December 2025, reflecting growth in rig capacity, expansion into oilfield services, and continued market share gains.
- The current Total Backlog as of 31 December 2025 consists of drilling contracts of KWD 229.9 million and oilfield services of KWD 91.6 million.
- By segment, 72% of the Total Backlog relates to drilling services and 28% to oilfield services, underscoring the diversification of revenue streams. Virtually all backlog is KWD-denominated, providing currency stability, and the majority is contracted with KOC, reflecting the strength of long-standing customer relationships.
Seasoned Leadership Team and Institutionalized Governancewebhosting@burhantec.com2026-05-06T16:01:40+00:00
- AEC’s management team brings an average of more than a decade of experience in Kuwait’s upstream sector and has overseen the Company’s transformation from a two-rig operator into a market leader. The team has consistently delivered projects on time and within budget while maintaining strong, collaborative relationships with Kuwait’s national operator.
- The Company has institutionalised governance in line with Capital Markets Authority requirements, supported by a diverse Board and established Board committees, including Audit, Risk, and Nomination & Remuneration. Independent directors to be appointed to further align governance with international best practices.
- AEC employs over +1,700 professionals across 25 nationalities, with around 70% in technical roles. This depth of operational expertise underpins execution capabilities and reinforces a strong safety culture across the organisation.
Clear Strategy for Disciplined Growth and Shareholder ReturnsKrunal Hirpara2026-04-28T09:35:41+00:00
- AEC’s strategy is built on a disciplined approach to growth, underpinned by Kuwait’s strong fundamentals and long-term production targets. Kuwait’s national operator has announced plans to raise crude production to 4.0 mmbpd by 2035 and free gas production to 2 bcfd by 2040, which will require around 201 drilling and workover contracts by 2030. With a proven track record and long-standing relationship with the national operator, AEC is well-positioned to capture this demand.
- The Company continues to expand its oilfield services portfolio, having secured pre-qualifications and awards across electric submersible pumps, slickline, inspection, and OTSG services. Further pre-qualifications are underway, reducing reliance on joint ventures while leveraging knowledge transfer from technical partners.
- Regionally, AEC is assessing opportunities across the GCC, where incremental drilling and workover demand is expected by 2030. Growth options include independent bids, new joint ventures, and selective acquisitions, which offer multiple pathways to scale and enhance competitive positioning.
