On 2026-08-10 08:56:11 (Saudi Time), Arabian Drilling Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026 (H1'26), Arabian Drilling Co. reported sales of SAR 1,586.3 million, a decline of 10.56% YoY from SAR 1,773.6 million in H1'25, primarily driven by a lower average rig utilization rate (72% vs. 79%), reflecting temporary offshore suspensions and the absence of a high-margin rig move that had contributed to the prior-year period. Net profit swung to a loss of SAR 24.5 million in H1'26 from a profit of SAR 82.7 million in H1'25, in line with the revenue decline, though partially offset by lower G&A costs. On a quarterly basis, Q2'26 revenue fell 11.34% YoY to SAR 764.7 million due to the lower rig utilization rate, while the net loss of SAR 31.5 million compared unfavorably to a net profit of SAR 7.5 million in Q2'25, with SG&A cost optimization initiatives providing only partial mitigation.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 6.92% to SAR 764.7 million in Q2'26, primarily driven by a SAR 122 million impact from offshore rig suspensions, partially offset by SAR 47 million of operational improvements in the land segment and an SAR 18 million full-quarter contribution from the international GCC operation. Gross profit fell sharply by 30.049% QoQ to SAR 70.3 million, and operating profit dropped 68.614% to SAR 18.8 million, reflecting the significant margin compression from lower offshore activity. Net profit swung to a loss of SAR 31.5 million from a profit of SAR 7.1 million in the prior quarter, mainly due to lower rig utilization (72% vs. 82%), partially offset by rig move efficiencies and cost optimization initiatives.

Other Items

The external auditor issued an unmodified conclusion on the interim financial results, with no additional comments noted in any other matter, conservation, notice, disclaimer of opinion, or adverse opinion paragraphs. Total shareholders' equity (after deducting minority equity) stood at SAR 5,724.8 million as of the current period, compared to SAR 5,895.3 million in the same period of the prior year, a decline of 2.892%. Loss per share for the current six-month period was SAR -0.27, compared to earnings per share of SAR 0.93 in the same period of the prior year, with the per-share figure based on 89,000,000 shares. Total comprehensive income attributable to shareholders was SAR -21.1 million for the current period versus SAR 77.1 million in the prior-year period. No accumulated losses or fair value changes in investment properties were reported. No material risk warnings, going concern issues, or debt covenant breaches were disclosed in this announcement.

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