Riyadh - Mubasher: Arabian Drilling Company's (ADC) annual financial results revealed a 46.85% decline in net profit in 2024.

The company stated in a statement today on Tadawul that net profit after zakat and tax amounted to approximately SAR 321.36 million, compared to SAR 604.61 million in 2023.

The company attributed the decline in net profits to the recording of operating costs for unconventional onshore drilling rigs in 2024, in addition to higher financing costs and equipment depreciation due to the addition of new drilling rigs, and finally a one-time non-cash asset write-down of SAR 105 million recorded in the second quarter of 2024.

The company's sales increased by about 4.09%, reaching approximately 3.62 billion riyals, compared to 3.47 billion riyals in 2023.

The company attributed the increase in revenue to the operation of eleven unconventional land-based drilling rigs out of a total of thirteen deployed in 2024. Offshore rig revenue remained roughly flat, due to the addition of three rigs during the third quarter of 2023, offsetting the decline in revenue from rigs that were suspended during 2024.