ADNOC Drilling Company PJSC (ADX:ADNOCDRILL) Interest Coverage: 12.88 (As of Jun. 2026) — 33% Below Median

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ADX:ADNOCDRILL ADNOC Drilling Company PJSC ADX:ADNOCDRILL
92 GF Score
Price د.إ5.67
GF Value د.إ6.40
Valuation Modestly Undervalued
! 6 Warning Signs
View Full Analysis

What is ADNOC Drilling Company PJSC Interest Coverage?

ADNOC Drilling Company PJSC ADX:ADNOCDRILL -0.87% 92 Interest Coverage is 12.88 as of Jun. 2026, which is 33% below its 10-year median of 19.10. GuruFocus rates ADX:ADNOCDRILL with a GF Score™ of 92/100 and a GF Value™ of د.إ6.40 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 741 Oil & Gas companies, ADNOC Drilling Company PJSC ranks better than 69.5% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. ADNOC Drilling Company PJSC's Operating Income for the three months ended in Jun. 2026 was د.إ1,520 Mil. ADNOC Drilling Company PJSC's Interest Expense for the three months ended in Jun. 2026 was د.إ-118 Mil. ADNOC Drilling Company PJSC's interest coverage for the quarter that ended in Jun. 2026 was 12.88. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for ADNOC Drilling Company PJSC's Interest Coverage or its related term are showing as below:

ADX:ADNOCDRILL' s Interest Coverage Range Over the Past 10 Years
Min: 11.3   Med: 19.1   Max: 77.34
Current: 16.11


ADX:ADNOCDRILL's Interest Coverage is ranked better than
69.5% of 741 companies
in the Oil & Gas industry
Industry Median: 6.43 vs ADX:ADNOCDRILL: 16.11

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


ADNOC Drilling Company PJSC  (ADX:ADNOCDRILL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


ADNOC Drilling Company PJSC Interest Coverage Related Terms


ADNOC Drilling Company PJSC Interest Coverage Historical Data

* Premium members only.

The historical data trend for ADNOC Drilling Company PJSC's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

ADNOC Drilling Company PJSC Interest Coverage Chart

ADNOC Drilling Company PJSC Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 34.51 23.72 14.53 11.34 14.89

ADNOC Drilling Company PJSC Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.21 15.75 19.01 18.30 12.88

ADX:ADNOCDRILL vs NE, RIG, VAL: Interest Coverage Comparison

For the Oil & Gas Drilling subindustry, ADNOC Drilling Company PJSC's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ADNOC Drilling Company PJSC Interest Coverage vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, ADNOC Drilling Company PJSC's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ADNOC Drilling Company PJSC's Interest Coverage falls into.


ADX:ADNOCDRILL
92GF Score
ADNOC Drilling Company PJSC ADX:ADNOCDRILL
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ADNOC Drilling Company PJSC Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

ADNOC Drilling Company PJSC's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, ADNOC Drilling Company PJSC's Interest Expense was د.إ-402 Mil. Its Operating Income was د.إ5,986 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ4,710 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*5985.887/-402.003
=14.89

ADNOC Drilling Company PJSC's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, ADNOC Drilling Company PJSC's Interest Expense was د.إ-118 Mil. Its Operating Income was د.إ1,520 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ4,685 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*1520.184/-117.979
=12.89

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 12.88 mean?
ADNOC Drilling Company PJSC (ADX:ADNOCDRILL) has a Interest Coverage of 12.88 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ADNOC Drilling Company PJSC and its competitors. This is 33% below median its historical median of 19.10. Over the past decade, ADNOC Drilling Company PJSC's Interest Coverage has ranged from 11.30 to 77.34. According to the industry distribution chart, ADNOC Drilling Company PJSC ranks #226 out of 741 companies in the Oil & Gas industry, placing it in the top 30.5%.
Is ADNOC Drilling Company PJSC's Interest Coverage too high?
ADNOC Drilling Company PJSC's current Interest Coverage of 12.88 is 33% below median its 10-year median of 19.10. Over the past 10 years, this metric has ranged from a low of 11.30 to a high of 77.34. The Oil & Gas industry median Interest Coverage is 6.43. ADNOC Drilling Company PJSC's value of 12.88 is 100.3% above this industry median. Based on the distribution chart, ADNOC Drilling Company PJSC ranks #226 out of 741 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, ADNOC Drilling Company PJSC has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ADNOC Drilling Company PJSC's Interest Coverage compare to NE and RIG?
According to the Oil & Gas industry distribution chart, ADNOC Drilling Company PJSC ranks #226 out of 741 companies for Interest Coverage. This puts ADNOC Drilling Company PJSC in the upper half of its industry. The industry median Interest Coverage is 6.43. ADNOC Drilling Company PJSC's value of 12.88 is 100.3% above this benchmark. Historically, ADNOC Drilling Company PJSC's own Interest Coverage has ranged from 11.30 to 77.34 over the past decade. While the company's 10-year median is 19.10 vs. the industry median of 6.43, ADNOC Drilling Company PJSC has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 6.43, based on 741 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ADNOC Drilling Company PJSC's current Interest Coverage of 12.88 is 100.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ADNOC Drilling Company PJSC and its competitors. For the Oil & Gas industry, the median Interest Coverage is 6.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ADNOC Drilling Company PJSC's current Interest Coverage is 12.88, which is 33% below median its own 10-year median of 19.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ADNOC Drilling Company PJSC stock overvalued right now?
Based on GuruFocus' analysis, ADNOC Drilling Company PJSC (ADX:ADNOCDRILL) is currently considered Modestly Undervalued. The stock's GF Value™ is د.إ6.40, compared to a current price of د.إ5.67 — trading 11.4% below its estimated fair value. The current Interest Coverage is 12.88, which is 33% below median its 10-year median of 19.10 and 100.3% above the Oil & Gas industry median of 6.43. ADNOC Drilling Company PJSC's overall GF Score™ is 92/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For ADNOC Drilling Company PJSC (ADX:ADNOCDRILL), the current Interest Coverage is 12.88 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is ADNOC Drilling Company PJSC (ADX:ADNOCDRILL) Overvalued in 2026?

Based on GuruFocus' analysis, ADNOC Drilling Company PJSC stock appears to be undervalued. The current stock price of د.إ5.67 is trading 11.4% below its estimated GF Value™ of د.إ6.40. GuruFocus considers ADNOC Drilling Company PJSC to be Modestly Undervalued.

Key valuation signals for ADX:ADNOCDRILL:

  • Interest Coverage: 12.88 (33% below median its 10-year median of 19.10)
  • GF Value™: د.إ6.40 vs. price of د.إ5.67 (11.4% below fair value)
  • GF Score™: 92/100 with 6 warning signs
  • Industry Position: 100.3% above the Oil & Gas median (#226 of 741)

No single metric tells the full story. See the ADX:ADNOCDRILL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


ADNOC Drilling Company PJSC Business Description

Industry EnergyOil & Gas
Address SKEC 2, Zone 1 - E-17, P.O. Box 4017, Abu Dhabi, ARE
ADNOC Drilling Company PJSC is engaged in providing drilling services and supporting marine equipment, and the hiring out of onshore and offshore drilling rigs on behalf of related parties involved in onshore and offshore oil and gas exploration. The operating business segments are Onshore, Offshore, and OilField Services, with maximum revenue from the Onshore segment.
92GF Score

Get the complete analysis for ADX:ADNOCDRILL

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

د.إ5.67
Price
د.إ6.40
GF Value